Delaware LLC: fees, costs and the Franchise Tax
What Delaware charges to form an LLC, how its annual Franchise Tax works and when it falls due, and what the first year and the renewal cost with KodiakBase, with official sources.
KodiakBase Team
The LLC in Delaware
Delaware registers LLCs through its Division of Corporations. The company comes into existence when the state accepts the Certificate of Formation — that is what the formation document is called there, not Articles of Organization.
Its yearly maintenance is the Franchise Tax: a fixed amount paid every year, with no report attached to it. It is the most expensive of the five states we form in to maintain.
What it costs to form and maintain
The state charges $250 to file the Certificate of Formation, once, and a $400 Franchise Tax every year.
With KodiakBase, the first year costs $549 with the state fees included, and the annual renewal $599: it covers the Registered Agent, the payment of the Franchise Tax, and the rest of the services that repeat every year.
| Item | Amount |
|---|---|
| State formation fee | $250 |
| Annual state fee | $400 |
| First year with KodiakBase, state fees included | $549 (pending approval) |
| Annual renewal with KodiakBase, state fees included | $599 (pending approval) |
The KodiakBase amounts marked as pending approval cannot be ordered yet: the configurator shows them without a total and sign-up will not take them until the price is approved. The state fees are public and do not depend on us.
When the Franchise Tax falls due
The Franchise Tax is due on June 1 every year, the same date for every LLC in the state: it does not depend on the month the company was formed.
On top of that state date comes the federal one, identical in all five states: the annual information return (Form 5472 with its pro forma Form 1120) is due on April 15.
What KodiakBase includes in Delaware
The service is the same in all five states; what changes between them is what each state charges and when. The first year in Delaware includes:
- Articles of Organization
- Registered Agent
- EIN
- Operating Agreement
- Business address
- Form 5472 + 1120
- Deadline calendar
- ProjektRepublic PRO
Frequently asked questions
What is the Franchise Tax of a Delaware LLC?
It is the fixed annual tax Delaware charges LLCs for staying on the register. It does not depend on the company's income or activity, and it is paid to the state's Division of Corporations.
Does a Delaware LLC file an annual report?
No. Delaware's annual report belongs to corporations; from LLCs the state asks for the Franchise Tax payment, with no report attached. The federal return (Form 5472 with its pro forma Form 1120) is still filed every year, as in the other four states.
When is the Franchise Tax due?
On June 1 every year, for every LLC in the state. It is a fixed calendar date: it does not move with the formation anniversary.
This page informs: it collects fees and deadlines published by the state and by the IRS, with their sources at the foot, and it is not tax or legal advice. Which state fits your case is assessed by a licensed US CPA for the US side and by a licensed tax adviser in your country of residence for yours.