Starting an LLC in Delaware as a college student is a smart move, offering liability protection and potential tax benefits for your budding business. However, understanding your tax obligations is crucial to avoid penalties and maximize your savings. This guide provides a clear overview of federal and Delaware state taxes relevant to your LLC in 2026, helping you stay compliant and financially savvy. Let Lovie handle the complexities of formation and compliance, so you can focus on growing your business.
As a single-member LLC in Delaware, your business income typically 'passes through' to your personal income tax return. This means the LLC itself doesn't pay federal income tax. Instead, you'll report your business profits and losses on Schedule C of your Form 1040. You'll also be responsible for self-employment taxes (Social Security and Medicare). Delaware has no state income tax on out-of-state revenue, which can be a significant advantage for students operating businesses beyond Delaware. However, you will be subject to Delaware's annual franchise tax.
Start your formation with Lovie — $20/month, everything included.