Don’t let your annual Delaware tax bill catch you by surprise. Whether you are running a C-Corporation or an LLC, use our simple calculator to estimate exactly what you owe to the Delaware Division of Corporations.
Understanding Your Delaware Franchise Tax
Delaware Franchise Tax is not an income tax; it is a “privilege tax” charged by the state for the right to own a Delaware company. You must pay this tax even if your company made $0 in revenue this year.
For Delaware LLCs (Limited Liability Companies)
As shown in our calculator, taxes for LLCs are straightforward.
- The Cost: A flat annual tax of $300.
- The Due Date: June 1st of every year.
- Filing Requirement: Delaware LLCs generally do not need to file an Annual Report; they only pay the annual tax.
- Late Fees: Failing to pay by June 1st results in a $200 penalty plus 1.5% monthly interest.
For Delaware C-Corporations
Corporations have a more complex tax structure with two different calculation methods. The state will calculate your bill using the method that results in the highest tax, but you are allowed to pay the one that results in the lowest.
Use the calculator to easily see the difference and determine your lowest possible tax liability.
How to Use This Calculator
- Enter Your Details: Provide your name and company name (optional) to get started.
- Select Your Entity Type: Choose between C-Corporation or LLC / LP from the dropdown menu.
- Review Your Estimate:
- For LLCs: The calculator will confirm your flat annual rate.
- For C-Corps: Input your share data to see if you qualify for tax savings using the Alternative Capital Method.
