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Tax Imposed on Delaware Series LLCs

Delaware legislation has authorized the formation of series limited liability companies. Beginning August 1, 2019, registered DE series LLCs will have an annual tax imposed.

A series LLC is a unique entity that consists of separate, individual interests.  In Delaware, each series can hold its own assets, have its own members, conduct its own operations and pursue different business objects. Meanwhile, each series can remain protected from claims of members, creditors, or litigants.

Every DE series LLC must pay an annual tax of $75.  LLCs that are doing business in DE must currently pay an annual tax of $300.

The annual tax payments are due by June 1 after the close of the series LLC’s calendar year.  Be aware that even if DE cancels the LLC’s registered certificate, the series LLC is still liable to pay the tax.

If you will be impacted by the DE series LLC tax, please reach out to us so we can ensure that you will remain compliant throughout the tax changes.

August 29, 2018