How Much Does It Cost to Start an LLC in Delaware?

Delaware LLC Online Filing Fee: $90

The main cost to start an LLC in Delaware is the $90 fee to file your LLC's Certificate of Formation online with the Delaware Department of State.

For a look at LLC costs in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Delaware Franchise Tax: $300

In Delaware, all LLCs are required to file and pay a $300 annual franchise tax. This can be done online.

Delaware charges a penalty of $200 plus 1.5% interest per month if you miss the June 1 filing deadline.

Cost to Form a Foreign LLC in Delaware

If you already have an LLC that is registered in another state and you’d like to expand your business into Delaware, you’ll need to register your LLC as a foreign LLC in Delaware.

The cost for registering a Delaware foreign LLC is $200. You can register a foreign LLC in Delaware by filing a Certificate of Registration of Foreign Limited Liability Company online or by mail.

Optional LLC Formation Costs

There are optional fees associated with LLC formation:

LLC Name Reservation

Reserve your name for up to 120 days prior to LLC formation by filing an Application for Reservation of Limited Liability Company Name and paying the $75 filing fee.

Trade Name

File a Registration of Trade, Business & Fictitious Name Certificate and pay the $25 filing fee (per county) to create a name other than your legal LLC business name.

Seven Basic Steps to Start an LLC in Delaware

Step 1: Name Your Delaware LLC
Step 2: Choose a Registered Agent
Step 3: File a Certificate of Formation
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 6: Pay Franchise Tax
Step 7: Keep Your Company Compliant

Step 1: Name Your Delaware LLC

When you name your Delaware LLC, you’ll need to choose a name that:

1. Is available for use in the state of Delaware
2. Meets Delaware naming requirements
3. Is available as a web domain

Recommended: Visit our Start an LLC in Delaware guide for detailed naming rules and instructions for registering a business name in Delaware.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Step 2: Choose a Registered Agent

All LLCs in Delaware must appoint a registered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Your Delaware registered agent must:

• Be at least 18 years or older
• Have a physical address in Delaware
• Be available during normal business hours to accept service of process

Step 3: File the Certificate of Formation

The Delaware Certificate of Formation is a document that is filed with the Delaware Department of State to form an LLC. The fee for filing a Certificate of Formation is $90 online.

For detailed instructions for completing the Certificate of Formation, visit our How to File the Delaware Certificate of Formation guide.

Step 4: Create an Operating Agreement

Delaware LLCs are required to create and maintain an operating agreement.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Delaware LLC operating agreement guide.

Step 5: Get an EIN

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

Why do I need an EIN? An EIN number is required for the following:

• Opening a business bank account
• Hiring employees

Step 6: Pay Franchise Tax

Instead of an annual report, the Delaware Secretary of State requires all LLCs to file and pay a flat-rate $300 franchise tax each year. This can be done online on or before June 1.

Failure to pay the franchise tax on time will result in a $200 penalty plus 1.5% interest per month.

Step 7: Keep Your Company Compliant

Maintaining compliance for your Delaware LLC involves several critical factors. Here's a summarized snapshot:

• Business Licenses & Permits: Your LLC should comply with federal, state, and local regulations. The types and costs of necessary licenses and permits will depend on your business nature.
• Delaware LLC Tax Responsibilities: Delaware does not impose sales tax, but your business might be subject to Delaware’s Gross Receipts Tax. If you hire employees, you'll need to register for Unemployment Insurance Tax and Employee Withholding Tax. The graduated state income tax rates range from 2.2% to 6.6%, depending on your LLC's income.
• Employee Hiring Compliance: If you're planning to hire employees, verify their work eligibility in the US, report them as new hires to the state, provide workers' compensation insurance, manage tax withholdings, and display workplace compliance posters in visible areas.

Keeping these points in mind will help ensure the successful operation of your Delaware LLC.