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FAQs: Annual Franchise Tax Payments for Delaware Alternative Business Entities

By: Colleen A. DeVries, COGENCY GLOBAL on Thu, May 23, 2024

What this is: Each year, limited liability companies (LLCs), limited partnerships and general partnerships formed or registered in Delaware are required to pay an annual LLC/partnership tax of $300 by June 1, covering the prior calendar year of existence. (Delaware corporations are subject to different requirements.) 

What this means: Below are some answers to the most frequently asked questions we field about this annual LLC/partnership tax requirement, which should help you maintain the good standing of your Delaware alternative business entities.

FAQs Delaware Header Image

How Do I Pay My Delaware Entity’s Annual Tax? 

Payments must be made directly to the State of Delaware, but you have a few options: 

  • Pay online by credit card 
  • Electronic payment (ACH debit) 
  • Pay by check 

Check payments should be made out to “Delaware Secretary of State” and sent to the following address, along with the detachable payment stub at the bottom of the tax notice you should receive from your registered agent (usually by the end of March): 

Express Mail

Division of Corporations
John G. Townsend Bldg.
401 Federal Street, Suite 4
Dover, DE 19901

Regular Mail

Division of Corporations
PO Box 898
Dover, DE 19903

If you’re paying by check, the state of Delaware will only allow you to include payment for up to 25 entities on a single check. Payments by wire are not permitted.   

What is My Company’s Business File Number? 

You will need your company’s business file number to pay your taxes online, which should be available on the notice you receive from your registered agent. 

Alternatively, you can locate your company’s business file number on the Delaware Secretary of State’s entity search portal. Simply type the name of your company into the search screen and you will receive a summary of the information on record in Delaware, including the file number. 

logo-cogency-color-1If you’d like to work with a team that can handle your corporate filings, corporate dissolutions and more, head on over to our Corporate Services page.

What Happens if I Miss the June 1 Deadline? 

Delaware will assess a penalty of $200 for non-payment or late payment, plus interest which will accrue on both the tax and penalty at the rate of 1.5% per month. 

Delaware entities that fail to pay their annual taxes for 3 consecutive years will be deemed void on the Secretary of State’s records. However, Delaware statutes allow you to reinstate the entity by filing a Certificate of Reinstatement and paying all past due taxes, penalties and interest. (Your registered agent can assist you with this filing.) 

What if I Still Have Questions About Annual Tax Requirements in Delaware? 

For additional questions about any tax requirements for your business entities formed or registered in Delaware, feel free to contact your registered agent for assistance. You can also reach out directly to the Delaware State Franchise Tax Unit for more information. 

This content is provided for informational purposes only and should not be considered, or relied upon, as legal advice.

Topics: Annual Report Compliance, Delaware Corporate, UCC and Compliance