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Do I owe Delaware franchise tax if I never did business in Delaware?

Sales tax & state compliance

Yes. Franchise tax is the price of keeping the entity registered, not a tax on activity in the state.

Incorporating in Delaware and operating entirely elsewhere is the normal case, and the tax is owed regardless. You will also owe income tax wherever you actually do business.

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Delaware for Your Business: A Friendly Guide to Corporation Tax
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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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