How to Start a Business in Delaware (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

To start a business in Delaware, you must register your entity with the Delaware Division of Corporations, obtain a federal Employer Identification Number (EIN), and secure a general business license from the Delaware Division of Revenue. Delaware is a popular state for business formation due to its well-developed corporate law and court system, with initial filing fees as low as $90 for an LLC.

Quick Answer

Formation Agency: Delaware Division of Corporations
LLC Filing Fee: $90 (2026)
Corp Filing Fee: $89 (2026, minimum)
Registered Agent: Required for all entities
Business License: Required from Division of Revenue ($75 first location)
Annual LLC Fee: $300 (due June 1st)
Annual Corp Fee: $175 (minimum, due March 1st)

Delaware is renowned for its business-friendly legal environment, making it a popular choice for companies of all sizes, including many Fortune 500 corporations. The state's Court of Chancery specializes in corporate law, providing a predictable and efficient judicial system. This guide outlines the essential steps to legally establish and operate a business in Delaware, from choosing a business structure to obtaining necessary licenses and understanding ongoing compliance requirements.

Step 1: Choose Your Business Structure

The first critical decision when starting a business in Delaware is selecting the appropriate legal structure. This choice impacts liability, taxation, and administrative burden. Common structures include:

Sole Proprietorship: The simplest structure, where the individual and business are legally inseparable. No state filing is required to form, but a business license is still needed. The owner is personally liable for all business debts.
Partnership: Similar to a sole proprietorship but involves two or more owners. General partnerships typically do not require state registration, but limited partnerships (LPs) and limited liability partnerships (LLPs) must register with the Delaware Division of Corporations.
Limited Liability Company (LLC): Offers personal liability protection to its owners (members) while providing flexible tax treatment. An LLC is formed by filing a Certificate of Formation with the Delaware Division of Corporations. See how to form an LLC for a general overview.
Corporation (C-Corp or S-Corp): Provides the strongest liability protection for owners (shareholders) and is suitable for businesses seeking outside investment. Corporations are formed by filing a Certificate of Incorporation with the Delaware Division of Corporations. See S-Corp vs LLC for tax implications.

Most small businesses choose between a sole proprietorship, partnership, or LLC. The LLC structure is particularly popular in Delaware due to its flexibility and strong liability protection under the Delaware Limited Liability Company Act. Corporations are governed by the Delaware General Corporation Law.

Step 2: Name Your Business

Before registering your business, you must choose a name that is distinguishable from other entities already on file with the Delaware Division of Corporations. The name must also comply with specific naming conventions for your chosen business structure (e.g., "LLC" or "Inc.").

Name Availability Search: Use the Delaware Division of Corporations' online search tool to check if your desired name is available. This is a crucial step to avoid rejection of your filing.
Name Reservation: If your name is available but you're not ready to file your formation document, you can reserve the name for 120 days by filing a Name Reservation Application and paying a fee of $75.
Trademark Search: Consider conducting a federal trademark search through the U.S. Patent and Trademark Office (USPTO) to ensure your chosen name does not infringe on an existing trademark.

Step 3: Appoint a Registered Agent

Every entity formed or registered to do business in Delaware, whether an LLC or a corporation, is legally required to maintain a registered agent with a physical street address in Delaware. The registered agent's role is to receive service of process (legal documents) and official government correspondence on behalf of your business. A P.O. Box is not an acceptable registered office address.

You cannot serve as your own registered agent if your business does not have a physical presence in Delaware. Many businesses, especially those formed in Delaware but operating elsewhere, hire a commercial registered agent service. The registered agent's information is included in your formation documents filed with the Division of Corporations.

Step 4: Register Your Business with the State

This step involves filing the necessary formation documents with the Delaware Division of Corporations. The specific document depends on your chosen business structure:

For LLCs: File a Certificate of Formation. The filing fee is $90.
For Corporations: File a Certificate of Incorporation. The minimum filing fee is $89, but it can vary based on the number of authorized shares.
For Partnerships: Limited Partnerships (LPs) and Limited Liability Partnerships (LLPs) file a Certificate of Limited Partnership or a Statement of Qualification, respectively. General Partnerships typically do not file formation documents with the state.

Filings can be submitted online, by mail, or in person. Online filing is generally the fastest method. Once approved, the Division of Corporations will return a filed copy of your document, which serves as proof of your business's legal existence.

Step 5: Obtain an EIN from the IRS

A federal Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is essential for most businesses. You can obtain an EIN for free directly from the Internal Revenue Service (IRS) website by completing Form SS-4. An EIN is required if your business:

Has employees.
Is taxed as a corporation or partnership.
Files excise, employment, or alcohol, tobacco, and firearms taxes.
Is a multi-member LLC.

Even if not strictly required, many single-member LLCs obtain an EIN to separate business finances from personal finances and to open a business bank account. The IRS typically treats single-member LLCs as disregarded entities for tax purposes, meaning profits and losses are reported on the owner's personal tax return.

Step 6: Get a Delaware Business License

Most businesses operating in Delaware, regardless of their legal structure, must obtain a general business license from the Delaware Division of Revenue. This is separate from your entity registration with the Division of Corporations.

Application: Apply for your business license through the Delaware One Stop Business Registration and Licensing portal.
Fee: The fee for a general business license is $75 for the first business location and $25 for each additional location. Licenses are typically renewed annually.
Specific Licenses: Depending on your industry or profession, you may need additional state-level professional licenses (e.g., for doctors, lawyers, contractors) or local permits from your city or county. Check with the relevant state agencies and your local government for specific requirements.

Step 7: Understand Ongoing Compliance and Taxes

After establishing your business, ongoing compliance is crucial to maintain good standing and avoid penalties. Key ongoing requirements in Delaware include:

Annual Franchise Tax:
- LLCs: Must pay an annual franchise tax of $300 to the Division of Corporations. This is due by June 1st each year.
- Corporations: Pay an annual franchise tax based on authorized shares or assumed par value capital, with a minimum of $175. This is due by March 1st each year.
Business License Renewal: Your general business license from the Division of Revenue typically needs to be renewed annually.
Federal Taxes: File federal income tax returns with the IRS based on your business structure (e.g., Form 1040 Schedule C for sole proprietors, Form 1065 for partnerships, Form 1120 for corporations).
State Income Tax: Delaware imposes a corporate income tax. For pass-through entities like LLCs and partnerships, income generally passes through to the owners, who pay individual income tax.
Other Taxes: Depending on your business activities, you may be subject to other taxes such as gross receipts tax, withholding tax, or unemployment insurance tax. Consult the Delaware Division of Revenue for details.

Maintaining accurate records, keeping business and personal finances separate, and consulting with a tax professional are highly recommended.

Frequently Asked Questions

How much does it cost to start a business in Delaware?

The initial filing fee for a Delaware LLC is $90, and for a corporation, it is typically $89. Additionally, a Delaware business license from the Division of Revenue costs $75 for the first location. These are minimum costs, and other fees may apply depending on the business structure and activities.

Do I need a registered agent in Delaware?

Yes, every entity formed or registered to do business in Delaware must maintain a registered agent with a physical street address in Delaware. The registered agent receives legal documents and official correspondence on behalf of the business.

What is the annual fee for a Delaware LLC?

A Delaware LLC must pay an annual franchise tax of $300 to the Division of Corporations. This fee is due by June 1st each year. Corporations pay an annual franchise tax based on authorized shares or assumed par value capital, with a minimum of $175.

Do I need a business license in Delaware?

Yes, most businesses operating in Delaware need a general business license from the Delaware Division of Revenue. The fee is $75 for the first location and $25 for each additional location. Certain professions or activities may require additional specific licenses.

How do I get an EIN for my Delaware business?

You can obtain a free Employer Identification Number (EIN) from the Internal Revenue Service (IRS) website. An EIN is required for most businesses to open a bank account, hire employees, and file federal taxes.

How to Start a Business (cluster hub)
How to Form an LLC
How to Get an EIN
What is a Registered Agent?
Business License Requirements
How to Start a Business in California (sibling)
How to Start a Business in Florida (sibling)

More Delaware business guides

Registered Agent LLC Annual Report Certificate of Formation Business License Business Entity Search Operating Agreement Corporate Income Tax Dissolve an LLC

Sources

Delaware Division of Corporations - How to Start a Business in Delaware.
Delaware Division of Corporations - Fee Schedule (LLC, Corporation filing fees, name reservation).
Delaware Division of Corporations - Filing Options.
Delaware Division of Revenue - Business License.
Delaware Division of Revenue - Business License Fees ($75 first location).
Delaware Division of Revenue - Business License FAQs.
Delaware Division of Revenue - Contact Information.
Delaware Code Online - Title 8, Chapter 1: General Corporation Law.
Delaware Code Online - Title 6, Chapter 18: Limited Liability Company Act.
IRS - Get an Employer Identification Number (EIN).
IRS - Limited Liability Company (LLC) (federal tax treatment).
Delaware Division of Corporations - Registered Agent FAQs.
Delaware Division of Corporations - Name Availability Search.
Delaware Division of Corporations - Name Reservation.

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Delaware Division of Corporations and Delaware Division of Revenue before acting.