Source: https://rivet.global/blog/delaware-franchise-tax-deadline-us
Published: 2026-10-04 · Updated: 2026-10-04 · By Alexia M.

# Delaware franchise tax deadline: corporations vs LLCs

Delaware franchise tax and annual report deadlines: 1 March for corporations, 1 June for LLCs, the $300 LLC tax, calculation methods for corporations and late penalties.

## Key takeaways

- Delaware corporations file an annual report and pay franchise tax by 1 March each year.
- Delaware LLCs and LPs pay a flat annual tax of $300 by 1 June and file no annual report.
- Corporations can calculate franchise tax by the authorised shares method or the assumed par value capital method; the second is often far lower for startups.
- Late payment brings a $200 penalty for LLCs and interest of 1.5% a month.

Delaware is where most US startups incorporate, and where many non-resident founders form LLCs. The annual tax is easy to forget because Delaware's dates are not the IRS's.

## The dates

| Entity | What | When |
|---|---|---|
| Corporation | Annual report and franchise tax | 1 March |
| LLC, LP, GP | Annual tax ($300) | 1 June |

## Corporations: two methods

- Authorised shares method: the default. A startup with 10 million authorised shares can receive a bill of tens of thousands of dollars.
- Assumed par value capital method: uses gross assets and issued shares. For most early startups, it produces a bill of a few hundred dollars.

You can file using the method that gives the lower tax.

## Penalties

- LLCs: $200 penalty plus 1.5% interest a month.
- Corporations: a penalty for late filing plus interest.
- Both: loss of good standing, which shows up when a bank or investor asks for a certificate.

## Other annual items

Foreign-owned single-member LLCs and 25% foreign-owned corporations may need Form 5472 with the IRS. See [Form 5472 guide](/blog/form-5472-guide).

## Paying into the United States: the local rail

| What | Detail |
|---|---|
| Local rail | ACH for batch payments; RTP and FedNow for instant transfers |
| Run by | Nacha for ACH; The Clearing House for RTP; the Federal Reserve for FedNow |
| Settlement | Same-day ACH within the business day, standard ACH the next; RTP and FedNow in seconds, 24/7, where both banks take part |

Source: [Nacha: Same Day ACH](https://www.nacha.org/rules/same-day-ach-moving-payments-faster). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

Rivet opens accounts for Delaware LLCs and corporations, including those owned from abroad, with USD details for ACH and wires on the free Starter plan. Paying the state from a Rivet balance works like any ACH payment. Rivet is not a bank; regulated partner institutions hold the funds. See [Delaware vs Wyoming LLC for non-residents](/blog/delaware-vs-wyoming-llc-for-non-residents).

## Questions

### When is Delaware franchise tax due?

1 March for corporations, with the annual report. 1 June for LLCs and LPs.

### How much is Delaware franchise tax for an LLC?

A flat $300 a year.

### Why is my corporation's franchise tax bill so high?

The default authorised shares method can produce large bills for startups with millions of authorised shares. Recalculating with the assumed par value capital method often reduces it sharply.

### What happens if I miss it?

Penalties and interest accrue, and the entity can lose good standing, which banks and investors check.