To start a business in Delaware, follow four core steps: form your entity with the Division of Corporations ($110 for an LLC’s Certificate of Formation, from $109 for a corporation), get an EIN, obtain a Delaware business license from the Division of Revenue (generally $75 a year), and register for gross receipts and payroll taxes. Delaware has no sales tax, but every Delaware LLC pays a $400 annual tax due June 1, and corporations file an annual report and pay franchise tax by March 1.
If you are forming in Delaware but operating somewhere else, you will usually also register in your home state. This guide covers both cases with fees as of October 2026.
Updated October 2026.
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Best Business Formation Services in Delaware (2026)
Comparing services for forming a business in Delaware? Start with this ranked shortlist; details for each pick follow the table.
| Rank | Provider | Best for | Price | What’s included |
|---|---|---|---|---|
| 1 | Mainstay Filing | Forming an LLC with the agent, EIN and annual report included | $199/year + state fee at cost | LLC formation filing, registered agent for the year, EIN application, annual report preparation and filing |
| 2 | DE Registered Agent.org | Delaware registered agent service only | $99/year | $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online |
| 3 | Delaware Registered Agent.ai | Delaware registered agent service only | $99/year | in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online |
1. Mainstay Filing
Mainstay Filing is our top pick in Delaware. It costs $199/year + state fee at cost and covers lLC formation filing, registered agent for the year, EIN application, annual report preparation and filing. The price stays the same every year, with no add-on menu.
2. DE Registered Agent.org
DE Registered Agent.org is a Delaware registered agent service at $99/year. It provides $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.
3. Delaware Registered Agent.ai
Delaware Registered Agent.ai is a Delaware registered agent service at $99/year. It provides in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.
Fees and deadlines to start a business in Delaware
| Item | Amount (Oct 2026) | When |
|---|---|---|
| LLC Certificate of Formation | $110 | At formation |
| Certificate of Incorporation | From $109; varies with authorized stock | At formation |
| Name reservation | $75 | Holds a name for 120 days |
| LLC annual tax | $400; no annual report | Due June 1 each year |
| Corporate annual report | $50 filing fee plus franchise tax (minimum $175 or $400, by method) | Due March 1 each year |
| Delaware business license | Generally $75 per year for a first location | Annually |
| Sources | Division of Corporations fee schedule, tax information | Revised August 1, 2026 |
Should you form in Delaware if you don’t live there?
Delaware is popular for its corporate law and Court of Chancery, and venture-backed startups often incorporate there. But a Delaware entity that operates in another state must usually register in that state as a foreign entity, pay that state’s fees, and keep a registered agent in both places. For a local service business or shop, forming in your home state is often simpler and cheaper.
If you do live and work in Delaware, the decision is easier: form a Delaware entity and follow the steps below. You will deal with one set of state agencies, one registered agent and one annual tax calendar.
Which structure fits a Delaware business?
- Sole proprietorship: no Division of Corporations filing, but you still need a Delaware business license.
- General partnership: also licensed through the Division of Revenue; partners share personal liability. A Statement of Partnership Existence is optional and costs $200.
- LLC: $110 to form and a flat $400 annual tax, with no annual report. Popular with small businesses and holding companies.
- Corporation: the choice for companies raising equity. The annual franchise tax depends on authorized shares or assumed par value capital, so model it before you set your share count.
Our Delaware LLC guide goes through the Certificate of Formation step by step.
How do you check and reserve a Delaware business name?
Search the Division of Corporations’ entity name search. An LLC’s name needs “LLC,” “L.L.C.” or “Limited Liability Company,” and a corporation’s name needs a corporate designator such as “Inc.” or “Corporation.”
You can reserve an available name for 120 days for $75. See our Delaware business name search guide for search tips.
Need ideas first? The Namechk business name generator creates options, and Namechk checks whether the domain and social handles are free.
Trade names in Delaware
Delaware changed how DBAs work in 2026. Since February 2, 2026, the Division of Revenue has run a statewide trade name registry through Delaware One Stop, replacing filings with each county’s Prothonotary, according to the Division of Revenue. Registering a trade name now requires a Delaware business license. Businesses that don’t otherwise need one can buy a Trade Name Only license for $25 a year. DBAs registered with a Prothonotary before that date remain on the Superior Court’s historic list.
Who can be your Delaware registered agent?
Every Delaware LLC and corporation must keep a registered agent with a physical address in Delaware. Delaware’s corporate filing system is built around registered agents: the Division of Corporations sends franchise tax notices to agents each December.
Delaware law even lets the LLC itself serve as its agent, but only with a real Delaware office where someone is generally present; an agent can’t operate solely through a virtual office or mail-forwarding service. Out-of-state owners almost always use a commercial agent. Mainstay Filing includes registered agent service for the first year with its formation package. Changing an LLC’s agent later costs $50 at the Division of Corporations. Our Delaware registered agent guide has more.
How do you file a Certificate of Formation or Incorporation?
- Prepare the Certificate of Formation (LLC) or Certificate of Incorporation. An LLC’s certificate is short: name, registered agent and address. A corporation’s certificate also sets authorized shares, which affects both the filing fee and future franchise tax.
- Submit it to the Division of Corporations with the fee: $110 for an LLC; $109 and up for a corporation, depending on stock.
- Choose expedited service if you need it. The fee schedule lists 24-hour service ($50 for an LLC formation) and same-day service ($100), plus priority options: two-hour service for $500 and one-hour service for $1,000 per document. Most small businesses don’t need expediting unless a bank closing or contract deadline depends on the filing date.
- Keep the stamped certificate for your bank, license and foreign registrations.
Then adopt an LLC operating agreement or corporate bylaws; Delaware doesn’t require filing them. For a breakdown of total costs, see Mainstay’s Delaware LLC cost guide.
Getting an EIN
Apply free on the IRS website. Delaware’s business license, withholding and unemployment registrations all ask for it.
U.S.-formed entities no longer file federal BOI reports; FinCEN’s final rule confirming the exemption took effect August 14, 2026.
Delaware business license and gross receipts tax
According to the Division of Revenue, any person or entity conducting a trade or business in Delaware, including corporations, must obtain a Delaware business license. The fee varies by activity but is generally $75 a year for a first location, and each separate business activity needs its own license. After the first year you can buy a three-year license (at three times the annual fee), and owners 65 or older may qualify for a 75% senior discount.
Instead of a sales tax, Delaware levies a gross receipts tax on the seller. Rates depend on your business category, and the Division of Revenue publishes a rate table by license category. Most categories exclude a set amount of monthly receipts before tax applies.
Register for the license and gross receipts tax through Delaware One Stop, which is also where employers continue on to unemployment insurance and workers’ compensation registration.
Hiring in Delaware
Businesses with employees register with the Delaware Department of Labor’s Division of Unemployment Insurance and the Division of Workers’ Compensation, and register for state withholding with the Division of Revenue. Delaware’s minimum wage is $15.00 per hour, according to the Delaware Department of Labor.
Other licenses, permits and setup
Some counties and towns require their own business licenses, and zoning approval may apply depending on location. State-regulated industries, from contractors to healthcare and alcohol, need additional licenses; the state’s Business First Steps site lists them by topic.
Once licensed, open a business bank account in the entity’s name, set up bookkeeping that tracks gross receipts by category, and buy the insurance that fits your risk, starting with general liability. Then claim your domain and get a website live.
Our picks of the best website builders
What are the ongoing requirements for a Delaware business?
- LLCs pay the $400 annual tax on or before June 1. The tax was $300 until House Bill 400, enacted May 21, 2026, raised it starting with tax year 2026. There’s no annual report and no proration; missing the deadline adds a $200 penalty plus 1.5% monthly interest.
- Corporations file an annual report online and pay franchise tax by March 1. The report filing fee is $50 for non-exempt domestic corporations, and the minimum tax is $175 under the Authorized Shares method or $400 under the Assumed Par Value Capital method.
- Renew the Delaware business license each year, or every three years if you chose the multi-year option.
- File gross receipts and withholding returns on schedule.
- Ignore unofficial mailers. The Division of Corporations has warned about deceptive solicitations sent to Delaware corporations.
FAQs
How much does it cost to start an LLC in Delaware?
The Delaware Division of Corporations charges $110 to file a Certificate of Formation, according to its fee schedule revised August 1, 2026. Every Delaware LLC then owes a $400 annual tax due June 1. Most businesses also need a Delaware business license, generally $75 a year, and out-of-state owners need a Delaware registered agent.
What is the Delaware LLC annual tax in 2026?
Delaware LLCs pay a flat $400 annual tax, due on or before June 1 each year, according to the Division of Corporations. LLCs do not file an annual report. Late payment adds a $200 penalty plus interest of 1.5% per month on the tax and penalty, and the tax is not prorated for partial years.
When are Delaware corporate franchise taxes due?
Delaware corporations must file their annual report and pay franchise tax by March 1 each year. The annual report filing fee is $50 for non-exempt domestic corporations. The minimum franchise tax is $175 under the Authorized Shares method or $400 under the Assumed Par Value Capital method.
Do I need a Delaware business license?
Yes, if you conduct business in Delaware. The Division of Revenue says any person or entity doing business in the state, including corporations, needs a Delaware business license. The fee is generally $75 a year for a first location, and each separate business activity needs its own license.
Does Delaware have a sales tax?
No. Delaware does not charge a sales tax. Instead, businesses pay a gross receipts tax on what they take in, with rates that depend on the business category. The Division of Revenue publishes the rates by license category, and most categories exclude a set amount of monthly receipts.
Should I form my LLC in Delaware if I live in another state?
Usually only if you have a specific reason, such as raising venture capital. A Delaware LLC doing business in another state generally must register there as a foreign LLC, pay that state’s fees and keep agents in both states, while still paying Delaware’s $400 annual tax. Local businesses often save money by forming at home.
What is the minimum wage in Delaware?
Delaware’s minimum wage is $15.00 per hour, effective January 1, 2025, according to the Delaware Department of Labor. Tipped employees must receive a cash wage of at least $2.23 per hour, with tips bringing total pay up to the minimum wage.
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