By using our website you consent to all cookies in accordance with our Privacy Policy.

Cover for Delaware LLC annual fees and report

A limited liability company (LLC) in Delaware can bring you the utmost benefits among all types of business entities. An LLC is easy to register. Its taxation is flexible. Not to mention that it is also easy to maintain.

To remain in good standing, all companies need to comply with three requirements in Delaware. They are filing annual reports, paying annual fees, and filing returns.

However, an LLC in Delaware does not need to file an annual report. It only needs to pay certain kinds of fees and file income reports at the State level.

1. Delaware LLC Annual Report

For your information, an annual report is a document that reports crucial information of a business to the state government, including:

  • The location of the company
  • The name and address of one officer
  • The names and addresses of all directors

Does a Delaware LLC need to file an annual report? NO. An LLC in Delaware is NOT required to file an annual report to the Division of Corporations. This means no Delaware LLC annual report fee and no due day.

2. Delaware LLC Annual Fees for Maintenance

For maintenance, Delaware LLC annual costs include 2 kinds of fees. They are registered agent fee and annual tax.

2.1. Delaware LLC Registered Agent Fee

According to the Limited Liability Company Act, every LLC has to get and maintain in the State of Delaware:

  • A registered office, which can be different from the business office (place to conduct business), and
  • A registered agent.

A registered agent will receive legal documents and tax notices on behalf of a Delaware LLC. You can think of a registered agent as a bridge of connection between an LLC and the state government. The agent will make sure a Delaware LLC pays annual fees and does the filing on time.

The agent can be an individual or an entity but must be a resident in Delaware. The person must be available during business hours to receive legal documents and notifications.

Delaware LLC annual fees

HUGE NOTE: If an LLC has a business office the same as the registered office in Delaware, it can act as its own registered agent. However, it can still opt for a registered-agent service to avoid dealing with complicated paperwork.

In case of service engagement, a Delaware LLC must pay an annual fee to the provider for service maintenance. The fee varies according to different providers.

2.2. Delaware LLC Annual Tax

The annual tax of an LLC in Delaware is very straightforward. An LLC is required to pay a flat annual tax of $300. The payment needs to be made no later than the first day of June. Late payment will cause a penalty of $200 plus monthly interest of 1.5% imposed on both tax and penalty.

3. Delaware LLC Annual Tax Filing Requirements

The taxation of an LLC in Delaware is very flexible. The tax filing requirements will depend on the type of entity that an LLC elects for tax purposes.

By default, a multiple-member LLC will be treated as a partnership for tax purposes. Meanwhile, a single-member LLC will be treated as a sole proprietorship for tax purposes.

Note: an LLC can elect to be treated as a corporation for taxation. If so, the tax filing requirements will be the same as a corporation. There are two kinds of corporations: C-corporation and S-corporation. C-corp status will result in double taxation at corporate level and personal level. S-corp status cannot apply to LLCs with non-resident members. You are not suggested to change to these statuses without careful consideration.

Delaware LLC tax filing

3.1. Filing Requirements for Multiple-member Delaware LLC

At the State level, a multiple-member LLC does not pay income tax at the corporate level, since it is treated as a partnership for tax purposes. The tax liability will pass through to the members. They will pay income tax according to their tax statuses.

However, an LLC still needs to do some reporting. If the profits or losses of an LLC connects to a Delaware source, it must file the Delaware Form 300 (the partnership return) to the Division of Revenue. The filing deadline is before the 15th day of the third month after the fiscal year ends. If an LLC does not have any Delaware-sourced income or loss, it needs not to file the return form.

For your information, Delaware-sourced income refers to the income generated from property located in Delaware or from any trade, business, occupation conducted in the state.

Subsequently, members of the LLC will need to report their income (which comes from the partnership) to the Division of Revenue. Residents need to file the Delaware Form 200-01, meanwhile, non-residents need to file Form 200-02. If non-residents do not have any Delaware-sourced income, no filing is needed. The deadline is by the last day of the fourth month after the fiscal year ends.

3.2. Filing Requirements for Single-member Delaware LLC

At the State level, a single-member LLC also does not pay corporate tax. The liability will flow to its sole owner. The person will need to pay tax and file a personal tax return to the Division of Revenue (Form 200-01 for residents and Form 200-02 for non-residents). Non-residents of a single-member LLC will not be taxed on foreign income (income that is not from U.S sources).

3.3. Gross Receipts Tax

Delaware imposes a tax on the total receipts of an LLC received from selling goods or supplying services in the state. The tax rates depend on different business types and activities (ranging from 0.0945% to 0.7468%). For more information on the rates, you can see them here.

A business must file a tax return (online) and pay such tax on a quarterly or monthly basis. New businesses are set up as quarterly filers as default. On a quarterly basis, the due day is the last day of the first month after the end of the quarter. On a monthly basis, the due day is the 20th day of the following month.

3.4. Delaware Withholding Tax

Withholding tax is imposed on the payments or wages paid to residents or non-residents. Employers of an LLC will withhold an estimated amount of tax from those payments or wages, then pay it to the Division of Revenue.

Every employee must file a Federal Form W-4 as a base for the employers to carry out withholding tax. At the State level, an LLC only needs to make an annual reconciliation report on the withheld tax (Delaware Form W-3) to the Division of Revenue. The due day for such filing is 28th February.

Furthermore, every year, the employer must send each employee a Delaware Form W-2, which is a statement of the employee’s total earnings and withheld tax. All copies of Form W-2 must be attached to Form W-3 when the LLC reports its annual withholding tax to the State government.

The matters of withholding tax are rather complicated. In addition to the State level, there are withholding-tax requirements at the federal level, too. You should consult with your registered agent or professionals to stay compliant with both the local and federal regulations.

4. Compliance Requirements at the Federal Level

Above are the compliance requirements at the State level only. Other than that, an LLC must also comply with the regulations at the federal level.

U.S. IRS

In general, an LLC in the U.S. is treated as a partnership for tax purposes, by default. It needs to report its income and losses to the Internal Revenue Service (IRS), via From 1065 (the return of partnership income). Additionally, it also needs to report on the matters of employment taxes and excise taxes if it is subject to these kinds of taxes.

An LLC must issue copies of Schedule K-31 (in Form 1065) to all of the members so that the members can proceed to file their annual tax returns to the IRS according to their tax statuses (Form 1040 for residents or Form 1040-NR for non-residents).

You can go over the federal requirements here. Again, you should consult with your registered agent or professionals to stay compliant with both the local and federal regulations.

5. Key takeaways

A Delaware LLC does not file an annual report to the State government.

In most cases, there are two kinds of Delaware LLC fees: registered agent fee and the state’s annual tax ($300).

By default, a multiple-member LLC in Delaware is treated as a partnership. If an LLC earned income from a Delaware source, the LLC and its members need to file reports to the State government. The same applies to single-member Delaware LLCs. A single-member LLC is treated as a sole proprietorship. The sole owner will need to report to the State government according to his/her personal tax status.

An LLC in Delaware will also need to comply with the compliance requirements at the federal level. Consulting with the registered agents or professionals is highly advised.

Should you have any questions about the LLC in Delaware, we are willing to assist you! Contact us now!

Recent Posts

faqs-about-delaware-corporation
20 Apr 2021

FAQs – 12 Frequently Asked Questions About Delaware Corporation

You may be confused about corporation types, structures, benefits, annual fees and how to form. These 12 FAQs about Delaware corporation are for you.

Read more
private-limited-company-in-the-uk
15 Apr 2021

Private Limited Company – An Emerging Form of Business in the UK

Everything you need to know about forming a Private Limited Company in the UK, including the pros and cons, formation requirements, and legal responsibilities.

Read more
delaware-withholding-tax
16 Apr 2021

Delaware Withholding Tax: What New Employers Should Know

Delaware withholding tax is imposed on wages paid to employees who perform for a company in the state. The employer must pay the amount to the local authority.

Read more
delaware-franchise-tax-and-annual-report
16 Apr 2021

Delaware Franchise Tax And Annual Report: What You Need To Know

Delaware franchise tax is one of mostly-asked topics for any business registered in the state, especially corporations and LLCs. This blog will explain to you.

Read more
how-to-form-a-delaware-corporation
7 Apr 2021

How To Form A Delaware Corporation: A Complete Guidance

Forming Delaware corporation is a trending option for most startups in the US. These easy-to-follow steps will guide you on how to set up a Delaware corporation.

Read more
delaware-corporation-benefits
2 Apr 2021

Top 4 Delaware corporation benefits you should know

Forming corporations in Delaware offers a large number of benefits in taxation, legal process, privacy protection, investor attraction. Read this for details.

Read more
how-to-register-llc-in-delaware
13 Apr 2021

How to Register an LLC in Delaware (in Only 3 Steps)

To register LLC in Delaware, you can follow the 3 simple steps: choose the LLC name, submit an application, and receive the result. Learn more!

Read more
reasons-why-you-should-incorporate-in-singapore
31 Mar 2021

Reasons why you should incorporate in Singapore (2021 updates)

Small in size, enormous in scale – this is the best way to describe Singapore. Let's take a look at reasons why you should incorporate in Singapore with BBCIncorp!

Read more
delaware-llc-overview
22 Mar 2021

Uncover Delaware LLCs in 8 questions

Delaware limited liability company is a very common type of business entity for non-US residents. Here’re 8 questions to uncover your curiosity about Delaware LLCs.

Read more
delaware-llc-advantages-disadvantages
13 Apr 2021

Delaware LLC with its benefits and drawbacks

Why incorporate in Delaware? Along with tons of benefits, Delaware LLC also has some drawbacks. Let’s take a closer look at its advantages and disadvantages!

Read more
starting-a-business-in-delaware
10 Mar 2021

Starting a business in Delaware: A guide you can't miss

Starting a business in Delaware might be no easy task. There are requirements that need to be taken into consideration. Let's find out more with BBCIncorp!

Read more
delaware-the-us-to-become-the-20th-jurisdiction-in-bbcincorps-global-serviced-list
5 Mar 2021

Delaware (the US) to become the 20th jurisdiction in BBCIncorp’s global serviced list

Delaware (the US) is the latest destination in the service list of BBCIncorp, expanding our network to 20 incorporation jurisdictions in total.

Read more