If you’re a small business owner, chances are you’ve considered forming an LLC. An LLC is a type of legal entity that allows you to conduct business with limited liability and pass-through taxation. The state of Delaware has become increasingly popular for forming LLCs due to its favorable tax laws. In this article, we’ll discuss the complete LLC tax laws in Delaware so that you can make an informed decision about whether or not forming an LLC in Delaware is right for your business.

Filing Requirements & Fees 

In order to form an LLC in Delaware, businesses must file a Certificate of Formation with the Secretary of State’s office. The filing fee for this document is $90 and it must include the following information: 

• The name and address of the company’s registered agent; 
• The company’s name and mailing address; 
• Whether the company will be managed by members or managers; and 
• The names and addresses of the company’s organizers. 

Once the Certificate of Formation has been filed, businesses must obtain a Business License from the Department of Finance at a cost of $50. This license must be renewed every two years.

Taxes on Income & Profits 

Delaware does not impose taxes on income or profits generated by LLCs formed in the state. Instead, all income is passed through to members who pay taxes according to their individual income tax rate. This means that members only pay taxes on their pro-rata share of profits rather than having to pay taxes on corporate profits as well. Furthermore, since members are taxed individually, losses can be used to offset other sources of income such as wages or investment gains.

Franchise Tax & Reports  

Delaware requires companies that form an LLC in the state to file an annual Franchise Tax Report with the Secretary of State’s office which details their gross receipts for the year. The amount due for franchise tax varies depending on gross receipts but it typically ranges between $200 and $400 per year. Companies must also submit this report regardless of whether they have made any money during the year or not—even if they have suffered losses they still need to file a report indicating such losses (and therefore paying no franchise tax).

Payroll Taxes & Withholding 

Since members of an LLC are treated as self-employed individuals, there is no requirement for payroll taxes or withholding taxes in Delaware—all taxes are paid by members directly according to their individual income tax rate which can range from 0% up to 6%. This makes it easier for small businesses operating as an LLC as they don’t need to worry about setting up payroll systems and tracking employee payments throughout the year.   

Sales Taxes 

There are no sales taxes imposed by Delaware on goods sold within its borders—only purchases made from out-of-state businesses may be subject to sales tax depending on where those goods were purchased from originally (i.e., where those businesses have nexus). Furthermore, certain types of services may also be subject to sales tax depending on what those services are (such as entertainment services).

Understanding all applicable laws is essential when starting any new business venture—especially when dealing with something like taxation that can easily become complicated quickly if not handled properly! In this article we’ve provided a comprehensive overview of all applicable laws related specifically to taxation for companies formed as LLcs within Delaware so that you can make informed decisions about your own financial future!