DE
Delaware Small Business Tax Guide
The LLC annual tax, corporate franchise tax and gross receipts tax in Delaware, in the words of the Division of Corporations and the Division of Revenue, with dates. Not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in Delaware before making filing or planning decisions.
Tax landscape for small businesses
This page draws on two Delaware offices: the Division of Corporations, which collects the annual tax on LLCs and the franchise tax on corporations, and the Division of Revenue, which runs the gross receipts tax. Every figure here comes with its source and date, from those offices or the IRS, and nothing is filled in from elsewhere.
For LLCs, the Division of Corporations (Delaware, checked October 31, 2026) says: "All Domestic and Foreign Limited Liability Companies, Limited Partnerships, and General Partnerships formed or registered in Delaware are required to pay an annual tax of $400.00." It adds: "There is no requirement to file an Annual Report."
Worked example, sample figures: an LLC pays its annual tax one month late. The Division of Corporations (Delaware, checked October 31, 2026) says late payment brings "a penalty of $200.00 plus 1.5% interest per month on tax and penalty". That is $400.00 + $200.00 = $600.00, plus one month's interest of $600.00 × 1.5% = $9.00, so $609.00 in all instead of $400.00.
The Division of Revenue (Delaware, checked October 31, 2026) describes its gross receipts tax this way: "Delaware’s Gross Receipts Tax is a tax on the total gross revenues of a business, regardless of their source. This tax is levied on the seller of goods or services, rather than on the consumer." On who pays, it says: "When you engage in business in the State of Delaware, you may be required to pay Gross Receipts Tax. This tax is paid by the seller of goods (tangible or otherwise) or the provider of services in the state."
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| LLC annual tax (Division of Corporations) | "$400.00" a year | Delaware, checked October 31, 2026; due "on or before June 1st". |
| Gross receipts tax (Division of Revenue) | "from .0945% to 1.9914%" | Delaware, checked October 31, 2026. The Division's full sentence: "Gross receipts tax rates currently range from .0945% to 1.9914% or a variable tax rate on Petroleum Products which may be as high as 2.4218%, depending on the business activity." |
| Corporate franchise tax (Division of Corporations) | Minimum "$175.00" | Delaware, checked October 31, 2026: "The minimum tax is currently $175.00, using the Authorized Shares Method". |
| Self-employment tax (federal) | "15.3%" | US federal rate from the IRS, as of its October 30, 2026 review or update. |
Filing requirements
This list isn't a complete checklist for your business.
LLC annual tax
The Division of Corporations (Delaware, checked October 31, 2026) says: "The annual taxes for the prior year are due on or before June 1st."
Corporation annual report and franchise tax
For corporations, the Division (Delaware, checked October 31, 2026) says: "All active Domestic Corporation Annual Reports and Franchise Taxes for the prior year are due annually on or before March 1st and are required to be filed online."
Gross receipts tax returns
The Division of Revenue (Delaware, checked October 31, 2026) says: "If you are set-up as a monthly filer, then your gross receipts tax is due on or before the 20th day of each month with respect to the aggregate gross receipts for the immediately preceding month." For quarterly filers: "If you are set-up as a quarterly filer, then your gross receipts tax is due on or before the last day of the first month following the close of the quarter."
Gross receipts exclusions
The Division of Revenue (Delaware, checked October 31, 2026) says "most businesses are entitled to an exclusion, which varies depending on the business activity conducted." It adds: "These exclusions, provided monthly or quarterly, generally start at $100,000 per month and can be as high as $1,250,000."
Goods shipped out of state or picked up in Delaware
The Division of Revenue (Delaware, checked October 31, 2026) says a retail or wholesale business does not pay gross receipts tax "on goods shipped by you directly to your customer outside of Delaware, but you need to keep documentation of the interstate shipment." For retail sales it says the tax "is due in instances when the retail customer picks up or takes delivery of the product in Delaware, regardless of the ultimate destination." A wholesale sale picked up in Delaware for use outside the state is exempt "only if you complete Form 373 Wholesale Exemption Certificate prior to or concurrent with the sale."
Federal estimated tax
In the US (federal), the IRS page on estimated taxes (last reviewed or updated September 25, 2026) says: "Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed."
Deductions and write-offs
Confirm with your state how it treats each item.
- The employer-equivalent part of SE tax: in the US (federal), the self-employment tax page of the IRS (last reviewed or updated October 30, 2026) says "you can deduct the employer-equivalent portion of your SE tax when calculating your adjusted gross income."
- Health insurance when self-employed: in the US (federal), that IRS page also says "a deduction, for income tax purposes, is allowed to self-employed individuals for the cost of health insurance."
- Delaware's own deductions aren't covered here; ask the Division of Revenue or a tax professional.
Practical tips
- Pay the LLC tax in full each year; the Division of Corporations (Delaware, checked October 31, 2026) says: "There is no proration on alternative entity taxes."
- Be wary of letters about these taxes: the Division of Corporations' page (Delaware, checked October 31, 2026) carries an "IMPORTANT CONSUMER ALERT ABOUT TAX AND ANNUAL REPORT SCAMS".
- Mark exempt wholesale sales on the invoice: the Division of Revenue (Delaware, checked October 31, 2026) says "failure by the seller to maintain a list of exemption certificates and to note on each sales invoice that an exemption is being claimed will cause the sale to be taxable."
- Billed's expense tracking page says: "Attach the receipt when you record the expense, and it stays with that entry in your Billed account instead of in a drawer or an inbox."
- Billed's invoice software page says: "Set a due date on each invoice so your client knows when to pay."
Frequently asked questions
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At a glance
| Delaware tax | Office | Who it applies to |
|---|---|---|
| LLC annual tax | Division of Corporations | LLCs, LPs and GPs |
| Franchise tax and annual report | Division of Corporations | Domestic corporations |
| Gross receipts tax | Division of Revenue | Sellers of goods or services |
When this isn't for you
This overview leaves out Delaware personal and corporate income tax rates, payroll taxes and franchise tax calculations for larger corporations. Ask a tax professional about those or about your own business, or contact the Division of Revenue or the Division of Corporations.