Delaware LLC Franchise Tax: The $300 Due June 1 — and What Happens If You Missed It

Every Delaware LLC owes a flat $300 franchise tax by June 1, every year. It doesn't matter if your LLC made zero dollars, has no bank account, or has never done a single transaction. And here's the part that catches thousands of owners: there is no form and no report to file. Nothing arrives in the mail. Nothing tells you it's due. You're just supposed to know.

The key facts

Question	Answer
How much?	$300 flat, every LLC, every year
When is it due?	June 1
Is it prorated?	No — same $300 whether you formed in January or December
What if my LLC made $0?	You still owe $300
Is there a form?	No — LLCs just pay. No annual report exists for Delaware LLCs
What if I'm late?	$200 penalty + 1.5% interest per month on tax and penalty
Where do I pay?	Online at corp.delaware.gov

When your first payment is due

The tax is paid in arrears — you pay for the previous year. Form your LLC any time in 2026, and your first $300 is due June 1, 2027. Nothing is owed in your formation year. (This trips people up in both directions: new owners panic about a payment they don't owe yet, and second-year owners forget the one they do.)

Missed June 1? Here's the math

The penalty structure compounds, so waiting gets expensive:

June 2: a $200 penalty is added. You now owe $500.
Each month after: 1.5% interest accrues on the unpaid tax and the penalty. By December, you're around $545 and climbing.
Long term: your LLC loses good standing — which surfaces at the worst moments: bank loans, closing deals, raising money. Delaware will also refuse to issue a Certificate of Good Standing until you're paid up.

⚠️ If you missed June 1 this year, pay now — the balance only grows. It takes 5 minutes at corp.delaware.gov: search your LLC by name or file number, and pay by card.

"I never got a bill"

Correct — and you never will. Delaware doesn't invoice LLCs. Your registered agent (required for every Delaware LLC) usually sends a courtesy reminder, but if your email with them is stale, or you used a cut-rate agent, the reminder dies in an inbox you don't check. Legally, none of that matters: the tax is due June 1 whether anyone reminded you or not.

Don't want the LLC anymore? Cancel it properly

This is the most expensive misunderstanding in Delaware: an unused LLC still accrues $300 + penalties every single year until you formally cancel it. Walking away doesn't end it — the balance keeps growing, and Delaware will collect it (plus every missed year) if you ever want to revive the entity, use the name, or get a clean record. If the LLC is dead weight, file a Certificate of Cancellation (and pay any back taxes owed) rather than letting it rot.

Own a Delaware corporation instead?

Different rules entirely: corporations file an actual annual report ($50) plus franchise tax by March 1, and the tax is calculated from your authorized shares. One important tip — Delaware's default bill uses the Authorized Shares Method, which can show startups a shockingly large number. Recalculate with the Assumed Par Value Capital Method before paying; for most startups with standard cap tables it reduces the bill to a few hundred dollars.

Delaware's trap isn't the $300 — it's the silence. No form, no invoice, no warning. Just a deadline you're expected to remember.

Never miss June 1 again

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General information, not legal or tax advice. Facts verified against the Delaware Division of Corporations as of July 2026. Related: Florida LLC Annual Report guide · What happens if you don't file?