Does Delaware Have a Minimum Franchise Tax?
Yes. Delaware imposes a $300 annual franchise tax on all domestic and foreign LLCs under 6 Del. C. § 18-1107, due June 1 each year. Series LLCs pay an additional $75 per registered series. This is a flat, mandatory minimum with no reduction based on income or assets.
The $300 Flat Tax
Every Delaware LLC pays exactly $300 annually—no exceptions, no sliding scale. This applies equally to single-member LLCs, multi-member LLCs, and foreign LLCs registered to do business in Delaware. The amount does not change based on revenue, profit, or number of members.
Series LLCs owe the base $300 plus $75 for each registered series. The franchise tax is separate from Delaware's gross receipts tax (which applies to businesses operating in the state) and any federal income tax obligations.
Payment Deadline
The franchise tax is due June 1 each year, beginning June 1 of the year following your LLC's formation. There is no grace period. Pay online through the Delaware Division of Revenue at https://revenue.delaware.gov/ or by mail.
Late Payment Penalties
Missing the June 1 deadline triggers a $200 penalty plus 1.5% monthly interest on both the unpaid tax and penalty. Interest compounds monthly, making delays expensive.
Automatic Dissolution Risk
Failure to pay the franchise tax for three consecutive years results in automatic cancellation of your Certificate of Formation under 6 Del. C. § 18-1108. Once dissolved, you cannot legally operate as a Delaware LLC.
Reinstatement
To restore your LLC after dissolution, file a Certificate of Revival with the Delaware Division of Corporations and pay all delinquent franchise taxes plus accumulated penalties and interest. Full payment of back obligations is required before reinstatement.
Bottom Line
The $300 minimum franchise tax is a fixed, non-negotiable annual cost for Delaware LLCs. Budget for this expense and set a calendar reminder for June 1 to avoid penalties and involuntary dissolution.
This is general information, not legal advice.