When starting a Delaware LLC, it’s important to understand the state’s tax obligations and compliance requirements. Although Delaware does not impose a state-level sales tax, LLCs are still subject to an annual franchise tax. This tax is relatively low and is based on the LLC's assets or the number of members. Delaware also requires LLCs to file an annual report, but the process is simple and can be done online.

To maintain your LLC's good standing, it's crucial to stay on top of these filings and pay the necessary fees on time. While Delaware's tax system is favorable for many businesses, you may still be subject to taxes in other states where your business operates. Therefore, it’s advisable to consult with a tax professional to ensure that you are meeting all necessary requirements and minimizing your tax liabilities.

Start a Delaware LLC