Delaware LLC Annual Report: What You Need To Know In 2026 (Updated: Mar)

Delaware is one of the easiest U.S. states to form and manage a Limited Liability Company (LLC).

Once you’ve filed your Certificate of Formation with the Delaware Secretary of State’s Division of Corporations, your LLC is officially recognized as a separate business entity. Following this, you need to complete several important state regulatory procedures and legal filings to start full business operations.

Delaware LLCs do NOT need to file an Annual Report with the state. Instead, they must pay an Annual Franchise Tax to maintain good standing with the Delaware Division of Corporations. I’ve discussed the Key filing requirements and fees below.

Does A Delaware LLC Need To File An Annual Report?

The state of Delaware does NOT require you to file an Annual Report when forming a Delaware LLC. Therefore, there’s no Delaware LLC Annual Report fee.

Only Corporations are required to file an Annual Report according to the Delaware Division of Corporations Annual Report and Tax Information page. This requirement is established under Delaware Code Title 8, Section 502.

However, your Delaware LLC must still meet recurring obligations to maintain good standing in the state. These include:

• Paying the $300 Annual Franchise Tax.
• Paying the applicable local and federal taxes.
• Renewing the applicable business licenses.

What Is The Delaware $300 Annual Franchise Tax?

The Delaware Annual Franchise Tax is a flat $300 mandatory state fee. All Delaware LLCs operating in the state must pay it under Delaware Code Title 6, §18-1107.

• You must pay your Delaware Franchise Tax every year on or before June 1.
• Your first tax payment is due in the following calendar year after your LLC is officially approved.
• All payments must be made out to the Delaware Division of Corporations.
• You’re required to pay the tax, even if you’ve earned no income or conducted no business operations in the state during that taxable year.

Example: Your Delaware LLC was formed on September 15, 2025. Your first Annual Franchise Tax payment is due on June 1, 2026.

Your Delaware Annual Franchise Tax Fee must be paid using the online processing method. Use the Delaware Division of Corporations website to submit your payment.

Read my article on the Delaware LLC Annual Franchise Tax for a detailed breakdown.

The Key Delaware Business Licenses

Alongside paying a $300 Annual Franchise Tax Fee to the Delaware Division of Corporations, you must renew your Delaware General Business License. This can be done every year or every three years, depending on your chosen renewal plan.

A Delaware Business License is a legal authorization allowing you to conduct business in the state. It’s issued by the State of Delaware to all LLCs. Under Delaware Code Title 30, §2101, all Delaware LLCs are required to obtain a Business License from the Delaware Division of Revenue.

• Your Delaware General Business License costs approximately $75 to process.
• Each extra LLC business location is charged an additional $25 fee.
• This may vary depending on your business activity. For example, additional state-level Occupational Licenses may be required. Fees typically range from $5 to $500.

Apply for your Delaware General Business License using one of these methods:

• Online via the Delaware One Stop portal.
• By mail.

Read my article on Delaware Business Licenses for more in-depth information.

Furthermore, you may need additional occupational and municipal licenses, depending on your business location and industry. These will also need to be renewed annually in most cases.

The Delaware LLC Federal, State, And Local Tax Obligations

Your Delaware LLC may be required to meet several ongoing local, state, and federal tax obligations. These are in addition to your Delaware Business License.

Most LLCs are considered “pass-through entities” at the federal level. This means that profits and losses are passed through to the member’s personal tax returns.

LLCs may be required to pay one or more of these common federal taxes:

• Federal Income Tax: Based on the member’s individual returns (Or corporate returns if your LLC elects corporate taxation).
• Federal Payroll Taxes: If your LLC has employees.
• Federal Excise Taxes: Applicable to certain services and products.
• Self-Employment Tax: Applies to members actively involved in running your LLC.

Besides these federal taxes, your LLC may need to pay certain state and local taxes, including:

• State and Local Withholding Tax (For employers).
• Gross receipts Tax.
• Local Business or Occupational Taxes (Based on city or county requirements).

The Gross Receipts Tax is imposed on sellers of goods and providers of services. This applies to almost all business types operating in Delaware. You’ll also need to pay it whether you sell products or services online or operate from a physical Delaware location.

• Your LLC will be registered with the Delaware Division of Revenue for this tax (As part of the One Stop Business License Application).
• Use the Delaware Taxpayer Portal to pay your Gross Receipts Tax online.

You can check out the Division of Revenue Internet Sales FAQs for more information, or review the following Delaware Division of Revenue resources for additional guidance:

• Gross Receipts Taxes.
• Gross Receipts Tax FAQs.
• Business Tax Tips.

Conclusion

Unlike most other U.S. states, LLCs operating in Delaware are not required to file an Annual Report. However, LLCs need to meet other annual state requirements to maintain their good standing with the state. They must pay a $300 Annual Franchise Tax Fee to the Delaware Division of Corporations by June 1 each year.

Alongside this, Delaware LLCs need to renew their business licenses annually or every three years (If they selected the multi-year renewal option). Other state and local tax requirements include paying the Delaware Gross Receipts Tax when selling goods or providing services in the state.

Frequently Asked Questions