How Much Does It Cost to Start a Business in Delaware

Delaware's startup costs are straightforward once you know where the fees land. You're looking at $235 to $334 to incorporate a basic LLC with a business license, plus the cost of a registered agent if you don't live in Delaware. The state has no sales tax, which helps on operating costs later, but annual fees hit predictably.

Here's what actually costs money and what doesn't.

Quick Cost Breakdown for a Delaware LLC

Item	Cost	When Due
LLC Formation (Certificate of Formation)	$110	At filing
Delaware Business License	$75 (most categories)	At setup
Registered Agent (annual)	$100 to $300	Annually
Franchise Tax (annual)	$300 flat	June 1 each year
Name Reservation (optional)	$75	Good for 120 days

Bottom line for Year 1: You'll spend $485 to $685 minimum if you hire a registered agent. If you live in Delaware and handle registration yourself, you're at $235 plus the June 1 franchise tax ($300), totaling $535 for the calendar year.

Formation Fees: LLC vs. Corporation

Delaware's two main business structures cost almost the same to file, but they diverge on annual compliance.

Limited Liability Company (LLC)

The LLC formation document is called a Certificate of Formation. Filing it costs $110 through the Delaware Division of Corporations at https://corp.delaware.gov/.

File online at the eCorp Document Upload Service: https://icis.corp.delaware.gov/ecorp2. The Division does not publish a standard processing timeframe and states that turnaround depends on filing volume. Standard processing can take a few days; expedited options run $50 (next business day) to $1,000 (one hour).

LLCs pay a flat $300 franchise tax annually, due June 1. No annual report is required, which saves you paperwork and another fee.

Delaware Corporation

A corporation files a Certificate of Incorporation for $109, only $1 less than an LLC. The difference shows up in Year 2 and beyond.

Corporations must file an Annual Franchise Tax Report by March 1 each year for $50. Over a 10-year period, that $50 annual fee adds up to $500 compared to an LLC's flat $300 structure.

Unless you have a specific reason to incorporate (complex fundraising, multiple investor tiers), an LLC costs less to maintain.

The Business License: You Can't Skip It

Delaware requires every person or entity conducting business in the state to hold a current business license from the Division of Revenue. It's not optional, and it's filed through Delaware One Stop at https://onestop.delaware.gov.

Standard annual fees break down by category:

• General services, professional/occupational, contractors, manufacturers, wholesalers: $75
• General retailers (includes a $15 retail crime fee): $90
• Each additional location: $25 to $40

Licenses expire December 31 each year. You can buy a three-year license upfront for three times the annual cost, which is a flat-rate hedge against fee increases.

In place of a sales tax, Delaware licensees pay a gross receipts tax of roughly 0.0945% to 1.9914% depending on the activity category, with monthly or quarterly returns and a monthly exclusion that commonly runs $100,000.

Registered Agent Requirement and Cost

Every Delaware entity must maintain a registered agent with a physical street address inside Delaware at all times. If you don't live in Delaware, you hire one.

Registered agents typically charge $100 to $300 per year, plus setup fees. A few state agents include the first year in their standard annual price; others charge extra upfront. If you do live in Delaware and want to serve as your own agent, the cost drops to $0, but you must be available during business hours to receive legal documents.

Changing your registered agent or address costs $50 and is filed with the Division of Corporations.

A resident agent is not optional. The $100 to $300 annual cost should be budgeted as a fixed overhead, not a "nice to have."

Name Reservation: Reserve Before You File (Optional)

Your business name must include "Limited Liability Company," "L.L.C.," or "LLC" if you're forming an LLC. The name must be available in Delaware's records, which you can check for free at https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx.

If you want to lock down a name while you prepare other details, a name reservation costs $75 and holds the name for 120 days. This is useful if you're still deciding on financing or want to avoid name conflicts while drafting documents, but it's not required.

The Franchise Tax: $300 Flat, No Exceptions

Delaware's annual $300 LLC franchise tax is a flat amount. It doesn't scale with revenue, profit, or the number of members. Whether you earn $10,000 or $10 million, you owe exactly $300.

The tax is due June 1 each year. If you miss the deadline, the Division assesses penalties, and your LLC's standing can lapse. Many businesses pay it automatically or set a calendar reminder.

The corporation annual report ($50) is a separate fee from the franchise tax. A corporation pays both; an LLC pays only the franchise tax.

Hidden Costs: What Sneaks Up

Operating Agreement Drafting

Delaware doesn't require an operating agreement to form an LLC, but you should have one. A DIY template might cost $20 to $50. A lawyer will charge $300 to $1,500 depending on complexity and whether you have multiple members. This is not a state filing fee but a legal necessity to avoid disputes later.

EIN and Tax Setup

You'll need a federal Employer Identification Number (EIN) from the IRS, which is free and obtained online at irs.gov. If you hire employees, you'll need a Delaware unemployment insurance account, which has no upfront fee but requires reporting and potential premium payments.

Licenses Beyond the General Business License

Some industries (food service, childcare, construction, healthcare) require additional permits or licenses beyond the $75 business license. These are not part of the standard business formation cost and vary widely by industry.

Banking and Accounting Software

You'll likely want a separate business bank account ($0 to $300 setup, depending on the bank) and accounting software ($10 to $50 per month). These are operational costs, not state fees, but they should be in your startup budget.

How to Keep Delaware Costs Low

Skip expedited filing if you don't need same-day processing. Standard filing at $110 is cheap; jumping to Priority 2 at $500 or Priority 1 at $1,000 makes sense only if you have a tight deadline. Most new businesses don't.

Handle your own business license application. The Delaware One Stop portal walks you through it. No attorney needed.

Use a registered agent service, not a law firm. Registered agent services start around $100 per year and handle exactly what you need: receiving legal documents and forwarding them to you. Law firms charge the same or more and bundle it with unnecessary services.

Don't reserve a name unless you need to. Free name searches are instant. If your name is available, file the formation document right away. The $75 reservation is useful only if you're not ready to file within 120 days.

Combine Year 1 setup in the same filing window if possible. Everything is due at different times (LLC formation when filed, business license at setup, franchise tax June 1), but you can coordinate the timing to batch your compliance calendar.

Startup Costs by Scenario

Solo LLC, You Handle Everything

• LLC Formation: $110
• Business License: $75
• Annual Registered Agent (assumed): $150
• Annual Franchise Tax (pro-rated if filed mid-year): $300
• Year 1 Total: $635

Solo LLC, Hire a Registered Agent Service

• LLC Formation: $110
• Business License: $75
• Registered Agent (full year): $150
• Operating Agreement (DIY template): $30
• Annual Franchise Tax: $300
• Year 1 Total: $665

LLC with Legal Review

• LLC Formation: $110
• Business License: $75
• Operating Agreement (attorney-drafted): $500
• Registered Agent: $150
• Annual Franchise Tax: $300
• Year 1 Total: $1,135

Recurring Year 2 and Beyond (LLC)

• Business License Renewal: $75
• Registered Agent: $150
• Franchise Tax: $300
• Annual Cost: $525

Where to Get Help

The Delaware Division of Corporations (https://corp.delaware.gov/) handles LLC and corporation filings. Their FAQs and online filing tool are free and clear.

The Delaware Division of Revenue (https://revenue.delaware.gov/) oversees business licenses and handles DBA registration.

The Delaware Small Business Development Center (https://delawaresbdc.org/) offers free business planning advice and can help you think through costs before you file.

The SBA's Delaware district office (https://www.sba.gov/district/delaware) has resources for startup financing and can connect you to SCORE mentors in the state.

A Delaware-registered agent service typically costs $100 to $300 per year and is easier and cheaper than hiring a law firm for this function alone.

Important Disclaimer

This guide is informational only and does not constitute legal or tax advice. Delaware's fees, tax law, and compliance requirements change. Consult a Delaware attorney or CPA before making business formation decisions, especially if you have complex ownership structures, multiple members, or out-of-state operations. The fees and timelines listed here reflect information current as of September 2026 and should be confirmed on the official Division of Corporations and Division of Revenue websites before filing.

Next Steps

Once you understand the baseline costs, your next decision is choosing between an LLC and a corporation. For most solo founders and small teams, an LLC is the right starting point. File your Certificate of Formation, set up your business license through Delaware One Stop, hire a registered agent, and you're live.

Don't let startup costs paralyze you. The total to get a legitimate Delaware LLC off the ground is under $700 for Year 1, which is not a large barrier. The real cost is your time and the money you'll spend operating the business, not paperwork.