Delaware franchise tax support for e-commerce owners

Who must pay and filing portals: Any corporation incorporated in Delaware must file an Annual Franchise Tax Report and pay franchise tax, regardless of where it conducts business. Filings and payments are made through the Division of Corporations eCorp online portal. 2) Due dates: Corporations' annual franchise tax and Annual Report are due by March 1st each year.

LLCs, LPs, and General Partnerships have a flat annual tax due on or before June 1st each year. 3) Amounts and calculation (corporations): Corporations must calculate their tax using both the Authorized Shares method and the Assumed Par Value Capital (APV) method, choosing the lower tax.

The state provides official calculators (spreadsheets). Common statutory ranges are often cited as a minimum of $175 for the Authorized Shares method and $400 for the APV method, with statutory maximums generally around $200,000.

Corporations with an annual franchise tax liability of $5,000 or more must make estimated payments on a four-step schedule: 40% due June 1st, 20% due September 1st, 20% due December 1st, and the balance due March 1st with the annual report. 4) LLCs/LPs/GPs: These entities pay a flat annual tax of $300, due by June 1st each year.

No annual report is required for LLCs/LPs/GPs, but payment is mandatory. 5) Penalties and interest: A penalty of $200 is commonly cited for non-payment or late payment. Interest accrues at 1.5% per month on both the tax and penalty.

Continued noncompliance can lead to loss of good standing or administrative dissolution.

Who must pay and filing portals: Any corporation incorporated in Delaware must file an Annual Franchise Tax Report and pay franchise tax, regardless of where it conducts business. Filings and payments are made through the Division of Corporations eCorp online portal. 2) Due dates: Corporations' annual franchise tax and Annual Report are due by March 1st each year.

LLCs, LPs, and General Partnerships have a flat annual tax due on or before June 1st each year. 3) Amounts and calculation (corporations): Corporations must calculate their tax using both the Authorized Shares method and the Assumed Par Value Capital (APV) method, choosing the lower tax.

The state provides official calculators (spreadsheets). Common statutory ranges are often cited as a minimum of $175 for the Authorized Shares method and $400 for the APV method, with statutory maximums generally around $200,000.

Corporations with an annual franchise tax liability of $5,000 or more must make estimated payments on a four-step schedule: 40% due June 1st, 20% due September 1st, 20% due December 1st, and the balance due March 1st with the annual report. 4) LLCs/LPs/GPs: These entities pay a flat annual tax of $300, due by June 1st each year.

No annual report is required for LLCs/LPs/GPs, but payment is mandatory. 5) Penalties and interest: A penalty of $200 is commonly cited for non-payment or late payment. Interest accrues at 1.5% per month on both the tax and penalty.

Continued noncompliance can lead to loss of good standing or administrative dissolution.

Registered agent and good standing

All Delaware entities must maintain a registered agent with a physical address in Delaware, to whom franchise tax notifications are mailed. Timely filings and payments are essential for maintaining good standing.

E-commerce-specific compliance notes

Delaware does not have a state sales tax, so sellers typically do not need to collect Delaware sales tax. However, selling into other states may create sales tax nexus or income tax filing obligations in those states due to economic nexus rules, marketplace facilitator rules, and multistate nexus for income/franchise taxes. E-commerce owners should track nexus by state, consider foreign qualification if substantial nexus exists in another state, and seek multistate tax advice.

Practical compliance checklist for e-commerce owners and LLC founders

Confirm entity type and Delaware file number, and register/login to the Division of Corporations eCorp portal. Corporations should calculate tax using both methods annually, consider adjusting authorized shares if appropriate, and make estimated payments if liability exceeds $5,000. LLCs/LPs must pay $300 by June 1st annually, ideally with automated reminders. Maintain an up-to-date registered agent. Keep accurate records for calculations. Track economic nexus thresholds and marketplace rules for sales into other states. Consult a Delaware-focused corporate attorney or multistate tax advisor for significant liabilities or uncertainties.

Official filing and contact resources

Delaware Division of Corporations ( https://corp.delaware.gov/ ) for Franchise Tax and Annual Report instructions/eCorp portal; LLC/LP/GP Franchise Tax Instructions ( https://corp.delaware.gov/alt-entitytaxinstructions/ ); Delaware Division of Revenue ( https://revenue.delaware.gov/business-tax-forms/franchise-taxes/ ) for overview and late payment rules; Official eCorp Login ( https://icis.corp.delaware.gov/ecorp/logintax.aspx?FilingType=FranchiseTax ).