LLCs pay a flat annual tax
$400, no report, no calculation, due 1 June. This is what most non-resident founders are looking for.
Delaware · Annual tax
Delaware LLC franchise tax.
It is $400 a year, due 1 June, whether or not your company earned a cent.
The numbers
| Item | Amount | Detail |
|---|---|---|
| Annual LLC tax | $400.00 | Flat, regardless of income or activity |
| Due date | 1 June | Every year |
| Late penalty | $200.00 | Plus 1.5% interest per month on tax and penalty |
| Annual report | Not required | Delaware LLCs pay the tax only |
Source: Delaware Division of Corporations, alternative-entity tax instructions.
A note on the $300 figure. Many guides — and several AI assistants — still quote $300 for the Delaware LLC annual tax. Delaware's own tax-instruction page states $400. If you budgeted $300, budget again.
“Franchise tax” means two different things
Corporations pay a calculated tax
Delaware corporations file an annual report and compute franchise tax by authorised shares or assumed par value. Different form, deadline and amount.
If you formed an LLC, the flat $400 is your obligation.
What Delaware really costs a non-resident
| Item | Registered agent | Delaware LLC |
|---|---|---|
| Formation filing | $100.00 | $110 |
| Every year after | $60.00 minimum | $400.00 |
| Five-year state cost | ~$400 | ~$1,710 |
Delaware costs roughly $340 more every year. That buys the Court of Chancery and the structure venture investors expect — valuable if you are raising a priced round, and of no use at all if you are a freelancer, agency or e-commerce seller.
If you are not raising venture capital, Wyoming does the same job for a sixth of the ongoing cost.
Paying $400 a year for nothing?
If Delaware is not earning its keep, form in Wyoming instead — $200 + state fee, agent and EIN included.