How Much Does an LLC Cost in Delaware
It costs $110 to form an LLC in Delaware. But these additional expenses could increase the total to over $3,000.
Here are the following fees to consider:
- Certificate of Formation Fee: $110
- Certificate of Authority Fee: $200
- Delaware Business License: $75
- Franchise Tax: $300
- Registered Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Optional Fees: Up to $3,000+
There's no getting around the fact that you have to spend money when forming a business. The question is, how much for an LLC in Delaware?
Whether you want to form an anonymous LLC or take advantage of Delaware's business-friendly laws, there are fees you need to pay. Read on to see how much you need to form an LLC in Delaware.
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Delaware LLC Certificate of Formation Fee
Cost: $110[1]
To form an LLC in Delaware, you must submit the Certificate of Formation to the Delaware Division of Corporations.
Unlike other states, Delaware only asks for three things in a Certificate of Formation:[2]
- The name of the limited liability company
- Registered agent's name
- Registered office address
You can submit the Certificate of Formation online or by mail. Delaware takes around 2 to 3 weeks to process hardcopy filings.
No, hiring an attorney is not required to form an LLC in Delaware. However, it's advisable to get one if you want to form an anonymous LLC.
Delaware Foreign LLC Formation Fee
Cost: $200[1]
If your LLC is already established in a different state and you want to expand your business to Delaware, you need to register it as a foreign LLC.
Foreign LLCs in Delaware must submit a Foreign Certificate of Registration to the Delaware Division of Corporations with the filing fee.
If your foreign LLC's original name is unavailable in Delaware, you must register a trade name. This assumed name becomes your LLC's official business name only in Delaware.
Yes, Delaware is one of the few states that allow anonymous LLCs. The difference between an LLC and an anonymous LLC is that the latter's real owners are not made public. Even if you search through a government's public database, you won't be able to find any information about the owners.
Delaware LLC Business Permit and License Fee
Cost: $75[3]
Businesses that sell goods, services, and other property in Delaware must get a state business license from the Delaware Division of Revenue. It expires every year on December 31st, but renewing online is easy.[4]
Alternatively, you can get a three-year business license and pre-pay the next two years' fees. You'll be given one business license valid for three years.[4]
The Delaware business license is generally sent within 10 working days. In the meantime, you can print a temporary license after registering online.[4]
Additionally, your LLC may need to get local business permits. If your LLC does business in two cities, you may need to get a separate license for each city. The local business permit fees vary per city and could be renewable yearly.
Yes, anyone can start a Delaware LLC, regardless of where they live or their citizenship status. Delaware has no residency requirements for LLC owners or members.
Delaware LLC Franchise Tax
Cost: $300[5]
Delaware LLCs don't have to file an annual report. However, there's a mandatory franchise tax each year.
All LLCs in Delaware must pay the franchise tax each year on or before June 1st. Failure to pay will result in a penalty of $200 plus 1.5% interest per month on tax and penalty.[5]
Additionally, self-employed LLC members must pay the Delaware income tax. This ranges from 2.2% to 5.55% for income under $60,000, and 6.60% for income of $60,000 and up.[6]
Then, you must pay the 15.3% federal self-employment tax on top of the state income tax. This tax covers Social Security and Medicare contributions.[7]
The fees that you'll incur when forming an LLC can be claimed as tax deductions. You can write off the following expenses:
Delaware LLC Optional Fees
While the Delaware LLC fees below are optional, some are unavoidable depending on your business needs. For example, obtaining a Certificate of Status is often necessary when opening a business bank account.
Delaware LLC Optional Fees | Cost |
---|---|
Expedited Services | $50 to $1,000 |
Registered Agent Services | $0 to $300+ |
Change of Registered Agent | $50 |
Operating Agreement | $0 to $500+ |
Employer Identification Number | $0 t0 $99 |
BOI Report | $0 to $149 |
Name Reservation | $75 |
Trade Name Registration | $25 |
Certificate of Correction | $220 |
Articles of Amendment | $200 to $220 |
Certified Document Copy | $50 |
Certificate of Status | $50 or $175 |
Website Domain | $10 to $20 |
Business Insurance Premiums | Varies |
Delaware LLC Expedited Service Fee
Delaware offers expedited services to process your LLC application faster. These services are also available if you need a document processed quickly, like a Certificate of Correction or a Certificate of Amendment.
Fees vary depending on how quickly you want your forms reviewed:[8]
- $50 to $100 - 24-hours
- $100 to $200 - Same day
- $500 - 2 hours
- $1,000 - 1 hour
The Delaware Division of Corporations typically takes 2 to 3 weeks to process a Certificate of Formation. You can pay for expedited services to process your LLC application quickly.
Delaware LLC Registered Agent Service Fee
Annual Cost: $0, or $100-$300/yr
In Delaware, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.
You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Delaware. You must also be available to receive documents during business hours.
However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.
Alternatively, the LLC itself can be its own registered agent. Delaware is one of the few states that allows this if the business is physically located in Delaware.[9]
Hiring a registered agent service isn't required for LLCs in Delaware, but doing so provides privacy and convenience. You get to keep your address off public records while letting a professional handle your LLC's legal documents.
Many registered agents also offer compliance services so you won't miss state and federal requirements. For an additional fee, they could file your BOI report, a new requirement by the Financial Crimes Enforcement Network.
Delaware LLC Change Registered Agent Fee
Cost: $50[1]
An LLC can change its registered agent's details anytime. If this happens, you must submit a statement of change to the Delaware Division of Corporations as soon as possible. Changes include the registered agent's name and address.
In Delaware, the certificate of amendment is used to change the business name, business purpose, and other details. There is a separate form focused solely on changes regarding the statutory agent.
Delaware LLC Operating Agreement Fee
Cost: $0, or up to $500+
LLCs in Delaware are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in Delaware. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Employer Identification Number
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Delaware don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
BOI Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.[10]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
Delaware LLC Name Reservation Fee
Cost: $75[1]
Naming your LLC in Delaware is free. It's included when you pay the Certificate of Formation filing fee. But if you're not ready to submit your Certificate of Formation, you can pay to reserve your LLC's name instead.
In Delaware, you can reserve a business name for 120 days. You can renew it for another 120 days for the same price. Don't forget to review Delaware's detailed list of naming regulations to prevent your reservation from getting rejected.
Check online to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL to prevent others from acquiring it.
Delaware LLC DBA Fee
Cost: $25 per county[11]
A trade name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state.
Some LLCs use a DBA for branding purposes. It's also ideal if you want to use a name without "LLC" at the end. Make sure the DBA you want is still available as the registration fee is non-refundable.
In Delaware, you must register a DBA in each county your LLC is doing business in.[11]
A trade name registration allows a business to operate under a name different from its legal name. Meanwhile, a trademark is an intellectual property protection that legally protects your brand name, logo, or slogan at the national level.
Delaware LLC Certificate of Correction Fee
Cost: $220[1]
After your Delaware LLC application is approved, get a copy of your Certificate of Formation and review all the details carefully.
If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing a Certificate of Correction.
The Delaware Division of Corporations accepts cash, checks, and all major credit cards as payment methods. However, the reception desk doesn't accept credit/debit cards and electronic checks (ACH).
Delaware LLC Certificate of Amendment Fee
Cost: $200 (domestic) | $220 (foreign)[1]
Your Delaware LLC's Certificate of Formations contains specific details about your business. If these details change, you must submit the Certificate of Amendment to the Division of Corporations.
File a Certificate of Amendment if you:
- Change the name of your LLC
- Update LLC's business purpose
- Modify the management structure
A Certificate of Correction is for fixing mistakes in initial filings. Meanwhile, the Certificate of Amendment is for updating key details as the LLC evolves.
Delaware LLC Certified Document Copy Fee
Cost: $50 per document + $2 per page for copies[1]
Certified copies of documents verify that your LLC is legitimate and that its details are accurate.
You might need these for circumstances like opening a business bank account or expanding your LLC in another state.
Additionally, some LLCs keep certified copies of their initial Certificate of Formation and Certificates of Amendment (if any) for recordkeeping purposes.
Delaware LLC Certificate of Status Fee
Cost: $50 (Short-form) | $175 (Long-form)[1]
A Certificate of Status, also known as a Certificate of Good Standing, is an official document provided by the Delaware Division of Corporations. It verifies that your LLC is up to date with all state filings and has paid all its state fees and taxes.
You might need a Certificate of Status to:
- Open a bank account
- Conduct business outside of Delaware
- Qualify for business insurance
- Apply for business loans
Alternatively, you can check the LLC's status through Delaware's online database for $10 to $20, depending on the level of detail you need.[12]
Delaware LLC Business Website Domain Fee
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Delaware LLC Business Insurance Premiums
Cost: Varies
Businesses with one or more employees in Delaware must have workers' compensation insurance.[13] Delaware does not have a state fund for workers' compensation, so you must self-insure or get it from a private company.
You might also be required to get other types of insurance:
- General liability insurance
- Commercial property insurance
- Professional liability insurance
- Cyber liability insurance
Bottom Line
In summary, the Certificate of Formation fee costs $110 in Delaware. You don't need to file an annual report, but you must pay the $300 franchise tax each year. You must also renew the state business license each year for $75.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Business Formation Service - $39 + State Fees
- Form Your LLC, Corporation, or Nonprofit Today
- A Fully-Formed Business
- Registered Agent Service
- Business Address
- Mail Forwarding
- Privacy by Default
Economy Package at $149 + State Filing Fees
- Name check service
- Business consultation
- Digital welcome packet
- Customizable WIX website
Starter - $0 + State Filing Fees
- Includes 1 optional free year of Worry-Free Compliance that renews at $199/year
- Standard filing speed
- 100% accuracy guaranteed
- Other services are available with additional costs
The total cost will increase depending on the additional services, documents, and licenses your LLC needs. Ultimately, setting aside an extra budget for unexpected fees is never a bad idea.
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References
- ^ Delaware Department of State. Certificate Type, Retrieved 06/10/2024
- ^ Delaware Division of Corporations. Certificate of Formation of a Limited Liability Company, Retrieved 06/10/2024
- ^ Delaware Division of Revenue. Step 2: Requirements for Delaware Businesses, Retrieved 06/10/2024
- ^ Delaware Division of Revenue. Business Licenses FAQs, Retrieved 06/10/2024
- ^ Delaware Division of Corporations. LLC/LP/GP Franchise Tax Instructions, Retrieved 06/10/2024
- ^ Delaware Division of Revenue. Personal Income Tax FAQs, Retrieved 06/10/2024
- ^ IRS. Self-Employment Tax (Social Security and Medicare Taxes), Retrieved 06/10/2024
- ^ Delaware Division of Corporations. Expedited Services, Retrieved 06/10/2024
- ^ Delaware Division of Corporations. FAQs Regarding Registered Agents, Retrieved 06/10/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ Delaware Business Licenses and Registrations. "Doing Business As" Name Registration for Business Fictitious Names, Retrieved 06/10/2024
- ^ Delaware Division of Corporations. Accessing Corporate Information, Retrieved 06/10/2024
- ^ Delaware Business Licenses and Registrations. Workers Compensation - Insurance Requirement, Retrieved 06/10/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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