Keep Your Business Running Smoothly

Delaware LLCs are not required to file annual reports, but they must meet a simple annual obligation to remain in good standing. Each year, every Delaware LLC must pay a flat $300 franchise tax, regardless of income or business activity.

The payment is due by June 1, and it’s submitted directly to the Delaware Division of Corporations. There’s no need to submit financial statements or company details—just the payment itself.

If the tax isn’t paid on time, the State imposes a pretty steep $200 late fee and whacks on 1.5% monthly interest on the unpaid amount if the tax payment is tardy. Staying current with annual tax obligations remains utterly essential for keeping LLCs eerily active under Delaware law mercifully.

Yes, Delaware does have a corporate tax on income. Up to 2025, the state levies a flat rate of 8.7% corporate income tax on income from business activities conducted within Delaware. But if a business is incorporated in Delaware but conducts business entirely outside the state, it is usually not subject to this tax. This disparity makes Delaware popular with companies that want to capitalize on its corporate law and tax-friendly environment without being physically located in the state.

In addition to the corporate income tax, Delaware also imposes most corporations an annual franchise tax. This is not based on income but on the number of authorized shares or the value of the company's assets, depending on the choice made.

Delaware's combination of liberal business statutes, a highly respected Court of Chancery, and low tax charges on foreign business activity makes it very attractive for entrepreneurs, start-ups, and multinationals alike. Firms should nevertheless consult legal or tax advisers to determine how Delaware tax laws specifically impact their individual situations.

For tailored guidance in integrating and handling tax matters in Delaware, professional counsel is required. Familiarity with local requirements prevents companies from paying penalties and optimizing their organization. For professional assistance, contact One IBC USA today.

Florida imposes a state corporate income tax on most businesses structured as C Corporations or entities taxed as corporations for federal purposes. Here’s how it works:

• The corporate income tax rate in Florida is currently 5.5%. It is applied to a corporation’s federal taxable income, with certain state-specific adjustments.
• S Corporations, LLCs, partnerships, and sole proprietorships are generally exempt from Florida’s corporate income tax, unless they elect to be taxed as a C Corporation.
• Florida offers a $50,000 exemption, meaning the first $50,000 of taxable income is not subject to tax.
• Corporations must file the Florida Form F-1120 each year to report income and calculate tax owed. Filing is due by the first day of the fourth month after the end of the corporation’s fiscal year (usually April 1 for calendar-year filers).
• Florida determines taxable income for multistate corporations using an apportionment formula that factors in sales, property and payroll.

Florida lacks a state-level personal income tax, making it rather attractive for corporate operations and businesses seeking lower overhead costs there. Entities taxed like traditional corporations are impacted heavily by state corporate income tax laws pretty typically each year.