CORPORATE TRANSACTIONS & COMPLIANCE BLOG

FAQs: Annual Tax Payments for Delaware Alternative Business Entities

By: Colleen DeVries, COGENCY GLOBAL on Wed, Feb 19, 2020
Annual Tax Payments for Delaware Alternative Business Entities

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

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

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):

Regular Mail

State of Delaware
Division of Corporations
P.O. Box 5509
Binghamton, NY 13902-5509

Overnight Mail

J.P. Morgan Chase
33 Lewis Road
Binghamton, NY 13905
Attention: State of Delaware,
Division of Corporations - 5509

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.

What Happens if I Miss the June 1st Deadline?

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

Delaware entities that fail to pay their annual taxes for three 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