LLC Cost in Delaware – How Much to Pay for an LLC


Save time & be confident while starting your Delaware LLC; use best professional help -
#1 TOP PICK
 TailorBrands - ($49 + State Fees) Online Delaware LLC Setup
delaware_state_seal

Perhaps you are hoping to form a Delaware LLC. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Delaware.

Delaware LLC Cost of Filing

Here are the costs involved in forming an LLC in Delaware.

Cost of Filing Formation Certificates

The Delaware Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Delaware Secretary of State

Delaware Domestic LLC

  • By Mail: Fill out the application form, and send it to Delaware Division of Corporations 401 Federal Street Suite 4 Dover, DE 19901 Costs $90
  • Franchise Tax $300 (Annual) can be done online.

Delaware Foreign LLC

  • By Mail: Fill out the application form, and send it to Delaware Division of Corporations 401 Federal Street Suite 4 Dover, DE 19901 Costs $200
  • An additional certified copy costs $50
  • Franchise Tax $300 (Annual) can be done online.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Delaware LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Delaware, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

Our Rating & Pricing

Top Features

Learn More

#1 TOP PICK

$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Delaware Department of Revenue for regulatory boards or agencies requiring licensing. 

Delaware Business Privilege Tax and Annual Report

Once you have your EIN or Employer Identification Number, apart from filing sales tax, once the company has completed its 2.5 months as an LLC in Delaware, it needs to pay a Business Privilege Tax (BPT). This is a requirement for all LLCs formed in Delaware. 

LLCs need to pay the tax before the third week of April, i.e, 15 April, and it can vary from 0.00025% to 0.000175% according to the net worth of the LLC. The exact rate will be obtained on the basis of the income of the previous taxable year. The minimum amount that the business will have to pay for this tax is $100. 

Delaware Taxes to Be Paid By The LLCs

Delaware is said to be the tax shelter state of the United States. The reason behind this is it has flexible taxation for the Limited Liability Companies. Firstly, the state does not have any Sales Tax. No, tax is imposed on the businesses based on Sales within the Delaware boundary. The state has Franchise tax and corporate income tax for the businesses. 

Delaware Franchise Tax

Franchise Tax in Delaware is paid annually on 1st June every year. Failing to pay on time, the LLCs can be fined $200 plus 1.5% interest upon the penalty. The amount of Franchise Tax is $300 and has to be paid by all LLCs irrespective of the size. 

Franchise Tax does not mean one has to have a Franchise business. It is a general business tax every LLC and corporation in Delaware has to pay annually. 

Corporate Income Tax

LLCs have the advantage of passing through income taxes. Hence, in Delaware, no LLCs have to pay corporate income taxes. However, the members have to pay income taxes separately according to their profit.

On the other hand, S Corporations do not have to pay any federal taxes. They have more tax benefits than LLCs. If an LLC wants, it can be filed as S Corporation by filing an IRS. In that case, the LLCs have to pay corporate income tax. 

Cost Comparison Among States

Delaware is surrounded by states like Pennsylvania, Maryland, New Jersey, and Virginia. Here’s LLC cost comparison among the neighboring states of Delaware,

StateFiling FeeAnnual Fee/Biennial Fee
Delaware LLC$90$300 (Annual)
Pennsylvania LLC$125$70 (Every 10 years)
New Jersey LLC$125$75 (Annual)
Maryland LLC$100$300 (Annual)
Virginia LLC$100$50 (Annual)

Other Costs

How Much Does It Cost to Maintain an LLC in Delaware

To maintain an LLC in Delaware you will need to pay an annual fee of $300 along with sales tax, business privilege tax, franchise tax, corporate income tax and federal taxes.

How Much Does It Cost to Maintain an LLC? Delaware LLCs are a good way to incorporate a small business. These businesses are often formed with the goal of attracting clients or investing money. Depending on the company type, the fees can be anywhere from $900 to over $7500. This fee covers self-employment and payroll taxes, sales taxes, and other legal expenses. Listed below are some of the things that will cost your LLC in Delaware.

The cost to maintain an LLC in Delaware includes the fees for a Registered Agent. The Registered Agent is the main contact for the state and will receive important documents for the LLC. While there are various registered agent companies, Harvard Business Services, Inc., has the lowest fee of $50 per year for registered agents. Legalzoom charges $159 per year, although this fee is not included in the initial filing package cost.

Franchise taxes are an annual fee for a Delaware LLC. The tax is due on June 1 of each calendar year, and failure to pay it on time can lead to a late fee and interest. If you fail to pay these taxes, the business can lose its good standing, which is why it’s so important to pay them as soon as possible. If you want to avoid surprises, you can choose to pay the fees in advance. If you are new to Delaware LLC formation, check with your registered agent.

There are many ways to file for an LLC in Delaware. You can file online or mail in the form. If you’re interested in a specific name, it’s best to make a reservation. The process is relatively simple, and you’ll be registered in a matter of days. The next step is to draft an LLC operating agreement. Delaware’s Division of Corporations will review the document and approve it.

Once your Delaware LLC is formed, it’s time to get your business licenses. Delaware requires businesses to have a registered agent. This person will be the main contact between your business and the state. They will also accept service of process. For Delaware LLC formation, you can use ZenBusiness’s registered agent service. Just be sure to pay the fees to the state. You may be wondering how much you can afford to pay to maintain your LLC.

Another thing you’ll need to do to maintain your LLC in Delaware is to register with the state’s Division of Revenue. You’ll have to pay a gross receipts tax depending on your business model. You’ll also need to pay state income taxes and self-employment taxes. Although the cost of registering an LLC in Delaware may be too high, it is well worth it in the end.

After registering your LLC, you must obtain a Certificate of Good Standing to open accounts under your company name. This document is also required if you’re planning to open bank accounts or creditor accounts. The Secretary of State will give you this document after you’ve paid your fee. The document contains the name and address of your company, as well as a statement that your LLC is in good standing.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of Delaware is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

Leave a Comment