The Franchise Tax is the annual tax that every Delaware LLC must pay to the state simply for existing, regardless of whether it has generated any activity or profits. It is the most important obligation of your LLC, and failing to meet it has serious consequences.
How much do I pay?
For a standard Delaware LLC, the Franchise Tax is a fixed fee of $300 per year. It does not depend on your income or revenue — it is the same amount for all LLCs, no matter what their business activity is.
When do I pay it?
The Franchise Tax for LLCs is due on June 1 each year. It is paid together with your Annual Report. It is critical not to miss this deadline.
What happens if I don’t pay on time?
- A $200 late fee is applied
- Interest accrues at 1.5% per month on the outstanding amount
- Your LLC enters «Void» status (not in good standing), losing its legal good standing
- An LLC in Void status cannot operate legally or obtain a Certificate of Good Standing
Does Aiden help me with the Franchise Tax?
Yes. Aiden notifies you in advance of the deadline. If you have the PRO LLC plan, Franchise Tax payment management is included — Aiden handles the process for you (the tax amount, the $300, is always paid by your company).