What is Delaware franchise tax?
Delaware franchise tax is a state-level fee that Delaware LLCs pay to remain in good standing. It is separate from your OtoCo annual renewal and separate from U.S. federal income tax.
Series LLCs — handled by the Master
If your entity is a Series LLC under OtoCo DE LLC, the Master LLC pays Delaware franchise tax on behalf of all its Series. You do not file or pay franchise tax separately for your individual Series.
This is one of the main advantages of the Series structure — the $99/yr OtoCo fee covers registered agent service, and franchise tax is absorbed by the Master.
Standalone LLCs — your responsibility
Standalone LLCs ($299/yr) are independent entities. Franchise tax and annual report obligations apply directly to your LLC. OtoCo's registered agent renewal helps keep you in good standing, but confirm your specific filing obligations with the state.
Wyoming LLCs
Wyoming does not have a franchise tax equivalent to Delaware's. Wyoming entities pay an annual report fee (handled through OtoCo's renewal for Series LLCs under the Master).
Your OtoCo annual renewal ($99/yr on-time) keeps your entity active on OtoCo and covers registered agent service. Delaware franchise tax is a distinct state obligation for Standalone entities.
Next: Annual renewals · Tax filings overview