How to Pay Delaware Franchise Tax for LLCs and LPs (Step-by-Step Guide)

Welcome to the All Things SPVs educational series by Sally, where we break down the essential (and often confusing) aspects of using Special Purpose Vehicles (SPVs) for private asset investing. YouTube video: https://youtu.be/btw-YdCE9Uw

In this guide, we’re walking through exactly how to pay the Delaware franchise tax for your LLCs and LPs so you can keep your entities in good standing. This process applies to both master entities and traditional/regular Delaware LLCs or LPs used as SPVs.

Important Disclaimer: This is for educational purposes only and is not legal or tax advice. Always consult with a qualified attorney or tax professional for your specific situation. This content is focused on SPV use cases.

Why Delaware LLCs and LPs Must Pay Annual Franchise Tax

All Limited Liability Companies (LLCs) and Limited Partnerships (LPs) formed or registered in Delaware are required to pay an annual franchise tax of $300.

Unlike corporations, LLCs and LPs do not need to file a detailed annual report — you simply make the tax payment. The deadline is typically June 1st each year. Paying on time keeps your entity in good standing with the State of Delaware and saves you from late fees.

Note: Series LLCs and Series LPs generally do not require annual renewal or franchise tax payments at the series level in the same way. Learn more about the Master Series Structure here.

What You’ll Need Before You Start

• Your entity’s exact name
• Your Delaware file number

You can find the file number in two easy ways:

1. On the stamped paperwork Delaware sent you when the entity was formed.
2. By performing a free entity search on the official Delaware Division of Corporations website.

Step-by-Step: Paying Your Delaware Franchise Tax Online

Go to the official payment portal. Search Google for “Delaware franchise tax payment” and look for the official Delaware.gov link (avoid third-party services if you want to handle it yourself).

1. Direct link to the payment system: https://icis.corp.delaware.gov/ecorp/logintax.aspx
2. Enter your Delaware file number. Complete the CAPTCHA and click Continue.
3. Review the entity details and amount due. The system will display your entity information, registered agent, tax year, and the amount due (usually $300, plus any penalties or interest if you’re late).
4. Make your payment Choose your preferred payment method:
   • ACH (electronic bank transfer) — Enter bank routing number, account number, and related details.
   • Credit/Debit Card — Enter card information and billing address.
5. Review everything carefully and click Submit.

Confirmation

Once processed, you’ll see a success message: “Payment received and submitted successfully.”

You can:

• View or print a confirmation copy
• Email the confirmation for your records
• Start a new filing if you’re renewing multiple entities

That’s it! Your Delaware LLC or LP is now renewed for another year.

Pro Tips

• Pay early to avoid the last-minute rush near the June 1st deadline.
• If you’ve missed previous years, expect to see penalties ($200) and interest (1.5% per month) added to the total.
• Third-party services can handle this for you, but they charge extra fees. Doing it directly through the state is straightforward and inexpensive.
• Keep your confirmation email or PDF in your entity records.

Direct Links for Convenience

• Pay Delaware LLC/LP Franchise Tax: https://icis.corp.delaware.gov/ecorp/logintax.aspx
• Delaware Entity Search (to find your file number): https://icis.corp.delaware.gov/ecorp/entitysearch/namesearch.aspx
• Main Division of Corporations site: https://corp.delaware.gov/

Final Thoughts

Maintaining good standing with Delaware is a small but critical part of managing professional SPVs. A simple annual $300 payment keeps your master entity or operating SPVs compliant and ready for business.

For more guides on forming, funding, and managing SPVs, check out the full All Things SPVs video series at: https://m.youtube.com/@AllThingsSPVs

If you want to limit the number of entities you need to renew each year, consider the Master Series Structure.Read our full guide on the Master Series Structure here.

Why Delaware is Still the Best Jurisdiction for SPVs Blog post: https://sally.co/why-delaware-is-still-the-best-jurisdiction-for-spvs/

How to Set Up Your SPV Entity: A Step-by-Step Guide Blog Post: https://sally.co/how-to-set-up-your-spv-entity-a-step-by-step-guide/

YouTube Video: YouTube video: https://youtu.be/btw-YdCE9Uw