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


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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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

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$0 + State Fees

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  • Extras are bit more expensive

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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

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.

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.

First and foremost, entrepreneurs need to take into account the initial cost of forming an LLC in Delaware. This typically includes filing fees with the Delaware Division of Corporations, which can range from a few hundred dollars to over a thousand dollars, depending on the services required and the method of filing. In addition, there may be costs associated with hiring a registered agent in Delaware to help with ongoing compliance requirements.

Once the LLC is formed, there are annual fees that need to be paid to the state of Delaware to keep the entity in good standing. These fees can vary depending on the type of business and the number of members in the LLC. Additionally, there may be additional costs associated with maintaining an office or registered agent in Delaware, as well as any necessary business licenses or permits.

Entrepreneurs should also consider the cost of complying with ongoing reporting and regulatory requirements in Delaware. For example, LLCs in Delaware are required to file an annual report and pay an annual franchise tax to the state. Failure to comply with these requirements can result in penalties and the loss of good standing with the state.

In addition to state-level costs, entrepreneurs should also factor in any federal requirements that may apply to their LLC. For example, LLCs with more than one member are required to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). There may also be costs associated with maintaining federal tax compliance, such as filing annual tax returns and making estimated tax payments.

It is important for entrepreneurs to carefully consider all of these costs when deciding whether to form an LLC in Delaware. While the state offers many benefits for business owners, including a favorable legal environment and strong protection of personal assets, the cost of maintaining an LLC should not be overlooked.

In conclusion, while the cost of maintaining an LLC in Delaware can vary depending on several factors, it is essential for entrepreneurs to budget for these expenses to ensure the ongoing success of their business. By carefully considering and planning for these costs, entrepreneurs can avoid any surprises and focus on growing their business in the competitive marketplace.

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.

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