Delaware C-Corp and LLC Fees: Tax and Annual Filing Fees for 2024

Every year, the number of Limited Liability Companies or LLCs formed in Delaware increases.

According to the state’s Annual Report Statistics, there were 157,142 LLCs formed in the state in 2018. This increased to 165,910 in 2019 and 180,376 in 2020. This may be because of the business-friendly regulations in the Diamond State.

In Delaware, you will need to go through a formal process for an LLC formation. Check the Secretary of State of Delaware’s website for the requirements for registering your company or business entity as an LLC.

You can prepare and file the paperwork yourself or you can hire the doola team to do it for you as a registered agent.

Another reason for the increasing number of LLCs in Delaware is its favorable taxation laws. These are among the several things you need to consider in forming an LLC in the state.

You also need to deal with Delaware’s LLC fees, which include formation fees and ongoing taxes. To know more about the LLC fees in Delaware, you might like to read the information we have gathered below.

What Is the Cost of Incorporating a Business in Delaware?

As mentioned above, there are several fees you need to consider in incorporating or forming an LLC in Delaware. They do not cost that much, but knowing what they are will allow you to prepare for them. These fees include:

Filing fees

Delaware LLC filing fees include $160 that you’d have to pay to the state for filing your Certificate of Formation. If you want to expedite the process, you need to pay an extra fee of $100 for same-day processing or $50 for the 24-hour service.

You also need to pay an additional $50 if you wish to get a certified copy of all your filing documents.

Although Delaware does not require you to reserve your company name before your LLC formation, you can pay $75 to have this done. This will reserve the name you chose for your company for 120 days. During this time, no other business can make use of it.

You will also need a Certificate of Good Standing if you will open accounts under your LLC name. These accounts may include a bank account or a creditor account. You can request this certificate from the Secretary of State after or while you are filing for your LLC formation.

It costs $50 and contains your LLC’s name and a statement that your company is in good standing.

Incorporation fees

You need to pay at least $89 for incorporating an LLC in Delaware. This includes the county fee of $24, the filing fee tax of at least $15, and the Division of Corporations fees of $50.

This price is based on a corporation that has 1,500 shares at no par value. So, the difference in filing fees will depend on the shares you want for your corporation and their par value.

What Are the Delaware Corporations’ Ongoing Taxes and Fees?

Delaware has several tax benefits for corporations. The franchise tax of the state is minimal for small businesses and it has no state sales tax. If you are not a resident of the state, you don’t even need to pay personal income taxes at all.

Below are the different ongoing fees and taxes you need to pay for your corporation every year.

Corporation annual report fees

All businesses incorporated in the state need to file annual reports and pay annual franchise taxes. For all non-exempt domestic corporations, the yearly filing fee for these reports is $50, plus taxes. These corporate tax filings should not go beyond the 1st of March every year.

Corporation tax fees

Corporations that use the Authorized Shares method need to pay at least $175 corporation tax.

Meanwhile, those that use the Assumed Par Value Capital method have to pay a minimum of $350. Corporations that use either of these methods will have as much as $180,000 corporation tax.

Corporate income taxpayers in Delaware who owe at least $5,000 or more will have to pay estimated taxes in installments per quarter.

40% should be paid by June 1, while 20% is due on September 1. Another 20% needs to be paid by December 1, while the rest of the amount is due on March 1 of the following year.

A corporation will have to pay a penalty fee of $125 for not filing a complete annual report on or before the due date of March 1. Unpaid tax balances are subject to an extra interest rate charge of 1.5% every month.

What Are the Ongoing Delaware LLC Taxes and Fees?

LLCs formed or incorporated in Delaware don’t need to file annual reports. However, they need to pay $300 in annual taxes.

LLC tax payments in the state are due on or before June 1st of every year. The penalty for late payments or non-payments is $200. The accumulating interest rate for both the tax amount and the penalty is 1.5% every month.

In starting a US business, learning what needs to be done and at what time is one of the most challenging tasks. Visit doola and we will guide you through the process and take care of the Delaware LLC fees.

Find out More About Delaware LLC Fees

Although you may have learned something from the article above, there are still many factors you need to consider in launching a business in the US. There is the matter of what you need to do and when to do them.

At doola, we have a team of experts who are willing to guide you through the process of preparing and filing the needed business and legal documents. They will help you understand everything, including knowing more about LLC fees in Delaware.

To know more, visit our Delaware state guide.

FAQs on Delaware LLC Fees

Do I need to pay yearly fees to keep my Delaware LLC in good standing?

To maintain the good standing of your LLC in Delaware, you need to pay the $300 franchise fee on or before June 1 of every year. This starts the year after your LLC was formed or incorporated and every year thereafter.

Do I have to renew my LLC every year?

The Delaware General Corporation Law requires the annual renewal of corporations in Delaware. The law states that every corporation has to file an annual report and pay the Delaware franchise tax on or before March 1 every year.

How can I get a Tax ID number for my company?

You can get this from the IRS. You just need to fill out and sign the IRS Form SS-4 before sending it back. Processing for this takes at least 24 hours.