How to Start a Catering Business in Delaware

September 6, 2026

Starting a catering business in Delaware is straightforward if you know the exact requirements and follow them in order. Delaware has no sales tax and relatively low annual business costs, which makes it an attractive state for food service entrepreneurs. This guide walks you through every step: choosing your business structure, getting licensed, securing food permits, and launching your operation.

This is informational content, not legal or tax advice. For complex situations involving liability, employment, or tax strategy, consult a qualified attorney or CPA.

What You Need Before You Start

• A business name, plus your LLC or trade name filing if you use one.
• A federal Employer Identification Number (EIN) for the Division of Revenue application.
• A kitchen plan: a licensed commissary, a rented commercial kitchen, or your own build-out, with a floor plan and menu.
• Your catering menu, service area and whether you will serve alcohol.
• Proof of workers' compensation insurance if you will have employees.
• Municipal zoning approval if your kitchen is in a new or converted space.

Step 1: Choose Your Business Structure

You can run a catering business as a sole proprietor, an LLC or a corporation. Most caterers choose an LLC because it separates personal assets from the risks of food service: a guest who gets sick at an event can sue the business, and you want that claim to stop at the business. Talk to an attorney or CPA about your own situation.

The LLC filing fee is $110 (Certificate of Formation, filed through the eCorp Document Upload Service at the Division of Corporations). A corporation costs $109 to file and owes an Annual Franchise Tax Report each March 1. An LLC owes a flat annual tax on June 1 each year. The amount is $400 under current law, and the first $400 payment is due June 1, 2027. Check corp.delaware.gov for the current amount and first due date before you budget. Delaware LLCs file no annual report.

Step 2: Register a Business Name

An LLC or corporation must have a name that is available in the Division of Corporations records, and you can check availability online. A name reservation costs $75 and lasts 120 days. If you operate under a name other than your own legal name, register a trade name (DBA) through the Division of Revenue on the Delaware One Stop portal. The fee is $25 one time, and registrations do not expire. The DBA registration needs an active business license, so get your license (Step 5) in step with the name filing.

Step 3: Arrange a Registered Agent

Every Delaware LLC and corporation must keep a registered agent with a physical Delaware street address. A Delaware resident can serve, a commercial agent can serve, or a business located in Delaware can act as its own agent. If you cater from a Delaware kitchen you may qualify to be your own agent, but your address then appears on the public record. A change of agent or office later costs $50.

Step 4: Get Your Kitchen Approved by the Office of Food Protection

Food safety in Delaware is regulated by the state, not by counties. The Division of Public Health, Office of Food Protection, issues the permit and inspects. Under 16 Del. C. 134, no public eating place may operate without approval of its sanitary facilities and a permit, and plans must be approved before you build or alter a space. Catering is no exception: the kitchen where you prepare food needs a permit, whether that is a commissary, a rented commercial kitchen or your own site. The rules follow the Delaware Food Code (16 DE Admin. Code 4458).

Here is how the costs work:

• Pre-permit inspection: no fee.
• Re-inspection: $50 for the second inspection, $100 for the third and $150 for each later one. Churches, schools, government and nonprofits are exempt.
• Plan review: tiered by floor area, from $50 for up to 1,000 square feet to $100 for 1,001 to 5,000 square feet, with higher tiers for larger spaces. Check with the Office of Food Protection for the amount on your invoice.
• Initial permit fee: check with the Office of Food Protection.

Operating without a valid permit can bring an immediate closure order. If you rent space in a licensed commissary, ask the operator for a copy of its permit and confirm in writing that your catering use is allowed there. Ask the Office of Food Protection how it treats your setup before you sign a lease.

Step 5: Get Your Restaurant Retailer License

Delaware has no sales tax. Businesses pay a gross receipts tax based on the license category the Division of Revenue assigns. Catering has a named home: 30 Del. C. 2906(a) lists "catering service" in the restaurant retailer category, alongside restaurants, snack bars and take-out food service. You do not need the general retailer license.

• License fee: $75 for the first location, plus $25 for each added location.
• Retail crime fee: none for restaurant retailers.
• Gross receipts tax: 0.6472% of gross receipts.

Apply through the Delaware One Stop portal at onestop.delaware.gov. You will need your entity details, your EIN and your food permit information. Your license is also what allows you to register a trade name. If your business has both a catering service and another activity, such as retail packaged goods, ask the Division of Revenue how it will classify each.

Step 6: Understand Your Gross Receipts Tax

Gross receipts tax is not an income tax. It applies to your total receipts, whether or not you made a profit, and it is separate from your federal and Delaware income taxes. The tax is 0.6472% of receipts after a $100,000 monthly deduction, or $300,000 per quarter when your lookback receipts are $1,500,000 or less. If you bring in $150,000 in a month, the tax is 0.6472% of the $50,000 above the deduction, which is about $324. New businesses file quarterly. File through One Stop or with the Division of Revenue at revenue.delaware.gov, and keep clean records of every event invoice, deposit and refund.

Step 7: Add a Liquor License If You Serve Alcohol

Your food permit does not let you pour drinks. If your catering service will provide beer, wine or spirits, you need a caterer license under 4 Del. C. 554, issued by the Alcoholic Beverage Control Commissioner. All licenses run two years. The biennial fees are:

• Caterer for consumption on the premises where sold: $1,000.
• Off-site caterer: $500.

Most on-premises license classes also pay a $100 annual Overservice Investigation Fund fee, and a non-refundable $1,000 application process fee applies when an application needs staff investigation or a hearing. A new version of section 554 takes effect January 23, 2027, so check with the ABC Commissioner for the fee schedule in force when you apply and for how long approval takes. Many beach towns add their own alcohol rules. Ask each town where you plan to serve.

Step 8: Do Not Use the Cottage Food Route for Catering

Delaware has a $30 cottage food registration, but it is built for something different. It covers non-perishable foods made in a home kitchen, such as baked goods, jams and candy, sold directly to consumers in Delaware. It bars online sales, wholesale sales and sales to resellers, and it covers only foods that do not need time and temperature control. A catering menu of hot entrees, salads, meats and dairy falls outside it. If you only want to sell cakes or cookies from home, see our cottage food guide. For event catering, plan on a permitted kitchen.

Step 9: Insure the Business and Handle Staffing

If you have employees, you must carry workers' compensation insurance. Delaware's minimum wage is $15.00 per hour, and the tipped cash wage floor is $2.23 per hour. General liability insurance is not a state requirement for caterers, but clients, venues and landlords often require proof of it, and a foodborne illness claim can end a young business. If you serve alcohol, add liquor liability coverage. Ask your insurer whether coverage follows you to off-site events and whether it covers food delivered in your own vehicle.

Step 10: Check Local Requirements and Launch

The state license does not cover city or county rules. Delaware has three counties and many incorporated municipalities, and requirements differ by location. Before you open, check with your city or county for:

• Zoning approval for your kitchen location.
• Building, fire and occupancy permits for a new build-out.
• A municipal business license, where the town requires one.
• Event or vendor permits at venues such as parks and beach towns.

Once the permit, the license and any liquor approval are in hand, set up your accounting so you can separate event deposits from earned receipts, and book your first events.

Startup Costs at a Glance

These are the state-level figures that are fixed by statute or by the Division of Corporations:

• LLC formation: $110.
• Restaurant retailer license: $75 (plus $25 for each added location).
• LLC annual tax: $400 (confirm the amount and first due date at corp.delaware.gov).
• Trade name registration, if used: $25.
• Name reservation, if used: $75.
• Food permit and plan review: check with the Office of Food Protection.
• Liquor caterer license, if used: $500 or $1,000 biennial.

Formation plus the license is $185 before the annual tax, so a basic LLC with no alcohol costs $185 to open and $400 per year to keep, plus your kitchen, equipment, insurance and food costs.

Tips to Avoid Common Mistakes

• Get plan approval before you build. Equipment bought before the Office of Food Protection signs off may not meet code.
• Do not rely on a home kitchen. Cottage food rules do not cover catering.
• Apply for liquor early. Confirm timing with the ABC Commissioner before you promise a client a bar service.
• Track receipts by quarter. The gross receipts tax is due whether or not you profit.
• Check each town. A state license does not replace a local one.
• Mark renewal dates. Your liquor license runs two years, and your food permit and business license each have their own renewal.

Timeline

If you already have a permitted commissary, you can move fast: form the entity, get your business license and be ready to book events within a few weeks. A build-out takes longer because the plan review comes first. Add time for local approvals and for any liquor application, and confirm each agency's current processing time directly.

Key Takeaways

A Delaware catering business needs a legal entity, a food permit from the Office of Food Protection for its kitchen, and a restaurant retailer license ($75, 0.6472% of gross receipts) from the Division of Revenue. Liquor service needs a separate caterer license at $500 or $1,000 biennial. The cottage food registration does not cover catering. Verify fees and dates with the agencies before you file, and see the Delaware Small Business Development Center at delawaresbdc.org for free advice.

Disclaimer

This article is informational only and is not legal, tax or business advice. Fees, rules and deadlines change. Confirm them with the Division of Corporations, the Division of Revenue, the Office of Food Protection and the ABC Commissioner, and consult a Delaware attorney and CPA before you rely on them.