Submitted by UCS on May 10, 2018

Delaware Franchise Taxes are due

Time definitely flies! As we march through the month of May, please keep in mind that Delaware LLCs, LPs and GPs are required to pay an annual tax of $300 by June 1st. Our Dover staff put together a list of frequently asked questions to help you get a better understanding of what action to keep your company in compliance and what happens when you don’t.

How am I notified that the tax payment is due?

Your registered agent will send you a tax notice by mail within 60 days of the due date. You may also receive some other notification as you have instructed them for these notices

What’s the difference between an annual report filing and an annual tax payment?

Corporations incorporated in the State of Delaware are required to file an Annual Report and to pay a franchise tax. The annual report requires specific information about the company such as the names of officers and directors and sometimes issued share information. Alternative entities (LLCs, LPs and GPs) do not file a report and are therefore not required to report any of this information. They simply pay their tax and they in “good standing” for another year with the state of Delaware.

How do I make payment?

You can pay by going to the state’s website, issuing a check as instructed on your notice, or asking UCS to pay on your behalf.

What happens if I don’t pay the tax on time?

Penalty for non-payment or late payment is $200.00. Interest accrues on the tax and penalty at the rate of 1.5% per month.

I neglected to pay my tax the last three years and now the state has voided my LLC. I still need this company, so how can I fix this?

If your company is voided by the state and you wish to continue to conduct business then you must file a Certificate of Revival and pay all outstanding tax, penalty, and interest. The certificate of revival applies to a LLC or LP. If you have a LLP or LLLP please contact UCS for additional information.