If your business operates in Delaware as a Limited Liability Company (LLC), Limited Partnership (LP), or General Partnership (GP)—whether domestic or foreign—you must comply with the state’s alternative entity tax requirements. Each of these entities is required to pay an annual tax of $300, due to the Delaware Division of Corporations by June 1 every year.
There is no proration for alternative entity taxes. If your entity is active at any time from January 1 through December 31 of the tax year, the full tax amount is required.
Penalties for Late Payments
Failing to meet the June 1 deadline can result in severe financial consequences:
- $200 penalty fee for late payments
- 1.5% interest per month (or portion thereof) on the outstanding tax and penalty until fully paid
Entities that do not comply may also risk losing their good standing status with the state.
How to Make a Payment
If Paracorp is your registered agent but you are not enrolled in our Managed Annual Report Services (MARS), you will receive a reminder notice via mail.
Payment Options:
Online Payment: You can conveniently pay your Delaware alternative entity tax online here: Delaware Division of Corporations Online Payment
Check Payment: If paying by check, make it payable to the Delaware Secretary of State and mail it to:
Delaware Division of Corporations
P.O. Box 5509
Binghamton, NY 13902-5509
Simplify Compliance with Managed Annual Report Services
For businesses enrolled in our Managed Annual Report Services (MARS) program, Paracorp handles the entire filing process—so you don’t have to worry about reminders or deadlines. If we manage 10 or more entities for you, prepayment of the tax may be required.
Need Help?
Ensuring compliance with Delaware’s business tax requirements can be complex, but our team at Paracorp is here to help! For assistance or to learn more about our registered agent services and MARS program, contact us at paracorp@myparacorp.com.