By Andrew R. Silverman, Esquire-
Delaware limited liability companies and partnerships must file franchise taxes with the Secretary of State of the State of Delaware. A franchise tax is a levy charged by many state governments against business entities for the continuing right of the entity to engage in business in the taxing state.
The franchise tax charged to Delaware limited liability companies and partnerships is currently $300 and must be paid on or before June 1 of each year. Failure to pay the franchise tax by June 1 will result in a $200 penalty (in addition to the $300 tax) and interest of 1.5 percent per month on the tax and the penalty.
Failure to pay franchise taxes may result in the entity losing its good standing, which will require the filing of a certificate of revival and payment of all outstanding taxes and interest.
The Delaware Secretary of State allows for payments to be made online.
Andrew Silverman is an attorney in the firm’s Business Department whose practice includes complex corporate governance and financing matters. If you are a Delaware business owner and desire guidance in establishing or managing an LLC or partnership, call 610-840-0286 or email [email protected].