No. A Delaware LLC is not subject to state corporate income tax on its income generated outside of Delaware.
There is also no state tax, local sales tax, tax on interest, royalty payments and other investment income on a Delaware LLC.
Frequently Asked Questions
Corporate taxation in Delaware
Is a Delaware company levied on income derived from outside of the state?
Types of entities in Delaware
What types of entities can a company be incorporated under the current law in Delaware?
Legal types of business entities under the Delaware laws include:
- Sole Proprietorship
- General Partnership
- Limited Partnership
- Corporation
- Limited Liability Company
- Limited Liability Partnership
Prominent among those, LLC is regarded as the most widely chosen business structure for foreign entrepreneurs.
Delaware company directors/members
What is the minimum number of members?
At least one member is required to set up a Delaware LLC.
Is information of company's registers required to be disclosed?
No. The identities and personal information in relation to company owners shall be kept confidential.
Share capital
Are bearer shares allowed?
No. All LLCs in Delaware are not allowed to issue bearer shares.
What is the minimum registered capital for a Delaware LLC?
There is no minimum registered capital requirement for a limited liability company in Delaware.
Annual maintenance
What are the maintenance requirements of a Delaware LLC?
Two main annual compliance requirements for an LLC in Delaware include:
- Maintain registered agent
- Pay an annual tax (franchise tax) of $300.00 (Due date for annual taxes in Delaware typically falls on or before 1st June)
There is no requirement for a Delaware LLC to file an annual report.
