How Much Does an LLC Cost in Delaware? (Filing Fees Guide)

Thinking about forming an LLC in Delaware? You’ll need to budget $90 for the Certificate of Formation and $300 annually for the franchise tax, due every June 1. Also, remember that an operating agreement is mandatory, but you can get it free from Northwest Registered Agent. Delaware’s business-friendly laws and easy setup make it a popular choice for entrepreneurs.

But keep an eye on ongoing costs, too!

You’ll need to budget for registered agent services. Additionally, consider expenses for reserving your LLC name, registering a DBA (doing business as), and obtaining a Certificate of Good Standing.

Ready to uncover the full breakdown of Delaware LLC costs and fees?

How Much Does an LLC Cost in Delaware?

Starting an LLC in Delaware involves specific costs.

• Filing Fee:
  • To form your LLC, you need to submit a Certificate of Formation.
  • This filing comes with a one-time fee of $90 paid to the Delaware Division of Corporations.
• Annual Tax:
  • After your LLC is formed, you must pay an annual tax of $300.
  • This tax is due on June 1 and does not require an annual report.
• Additional Costs:
  • If you use a formation service like Northwest, expect to pay extra fees.
  • These services might charge around $39 plus the state fees for assistance.
  • Registered agent services for an LLC in Delaware typically cost around $100 to $300 per year, depending on the provider and additional services.
• Other Considerations:
  • Delaware LLCs offer flexibility in managing profits and protecting your assets.
  • LLCs can also be set up as series LLCs, professional LLCs, or non-profit LLCs, but depending on the type selected, additional costs may apply.

Delaware’s costs are relatively low compared to other states. Forming your LLC can be a wise choice for limiting liability while enjoying pass-through taxation benefits.

LLC Costs in Delaware (Formation Fees)

Here is a table outlining the Delaware LLC key requirements and their associated fees:

Delaware LLC Requirements	Cost
Delaware LLC Business Name	$0
Certificate of Formation	$90
Operating Agreement	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Annual Franchise Tax	$300/annually
LLC Name Reservation Fee (optional)	$75
Certificate of Good Standing (optional)	$50
Delaware Foreign LLC Registration (optional)	$200
Fictitious Name (DBA) (optional)	$25
Taxes	Varies
State Business License Fee	$75/annually
Registered agent services	$0-$125 (Northwest)
LLC formation service	$39
Total LLC Costs in Delaware	$390 – $979

Total LLC costs in Delaware range from $390 to $979. If you do everything yourself and skip the optional extras, you might only spend around $390. However, if you decide to pay for additional services and requirements, your costs could go up to between $800 and $900.

The first mandatory expense is the Certificate of Formation, which costs $90. To maintain your LLC’s good standing with the state, you must also pay an annual franchise tax of $300. An Operating Agreement is mandatory and recommended; it can be obtained with Northwest at no cost.

Now, let’s discuss the optional costs. Obtaining an Employer Identification Number (EIN) is free from the IRS. Your Delaware LLC business name costs $0; you can choose any available name without a fee.

If you want to reserve your LLC name, that will cost you $75. You can also request a Certificate of Good Standing for $50, and if you plan to register a Delaware foreign LLC, that would incur a fee of $200. If you wish to operate under a different name (DBA), you must pay $25.

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $0 to $300, depending on the provider. Suppose you use an LLC formation service that typically costs around $39. Additionally, remember that taxes and state business license fees can vary, with a minimum state business license fee of $75.

Understanding these mandatory and optional costs will help you plan effectively for your business journey. Keep reading to get all the details you need!

Delaware LLC Business Name Cost ($0)

When forming an LLC in Delaware, you don’t have to pay fees to register your business name. The state allows you to choose and use your desired name without cost.

Here’s what you need to know:

• Name Choice: You can select almost any name using state guidelines.
• Unique Requirement: Your chosen name must be unique and not too similar to existing entities.

Before finalizing your name, it’s smart to check the Delaware Division of Corporations website. This ensures your name is available and meets all regulations.

Choosing a solid business name sets the tone for your brand. Take your time and select a name that reflects your business identity.

Certificate of Formation ($90)

One essential step in forming an LLC in Delaware is filing the Certificate of Formation. This document officially establishes your LLC and includes key details such as the company name, address, and registered agent. The fee to file the Certificate of Formation is $90, a one-time fee paid to the Delaware Division of Corporations.

The Delaware LLC processing time for the Certificate of Formation can vary. Typically, standard processing takes about 2 to 3 weeks. However, if you need your filing expedited, you can request expedited service for an additional fee, which can significantly shorten the processing time.

Ensuring that your Certificate of Formation is accurately completed and submitted is crucial, as it marks the official start of your LLC’s existence in Delaware.

LLC Operating Agreement Cost in Delaware ($0)

In Delaware, you can create your LLC’s Operating Agreement for free if you write it yourself. This document is mandatory as it details the roles and responsibilities of each member and how your LLC will operate.

Having an Operating Agreement is a smart move. It can prevent misunderstandings among members and help protect your limited liability status.

Other options are available if writing it yourself doesn’t appeal to you. Online services can help you draft the agreement for a fee ranging from $50 to $200. Alternatively, if you prefer professional help, consulting a lawyer will cost you, and the price can vary based on the lawyer or firm you choose.

Delaware Registered Agent Fee ($0-$300/annually)

A registered agent is a key requirement when you form an LLC in Delaware. This agent is responsible for receiving legal documents and official notices on behalf of your LLC.

You have two main options for your registered agent. If you choose to act as your Delaware registered agent, it’s completely free. All you need to do is provide your name and physical address in Delaware, where all official correspondence will be sent.

If you’d prefer to hire a professional service, the costs vary. Generally, hiring a registered agent service ranges from $0 to $300 per year. For example, LegalZoom charges about $249 annually, while ZenBusiness offers services for $199 annually.

Northwest Registered Agent offers a particularly good deal—they provide free services for the first year if you hire them to form your LLC. After the first year, their fee is $125 annually, which remains quite competitive compared to other providers.

Opting for a professional registered agent service can ensure you never miss important documents and help protect your privacy. Choosing the right option depends on your needs and budget, so consider how comfortable you are handling important documents.

EIN Cost in Delaware ($0 from the IRS website)

When starting your Delaware LLC, getting an Employer Identification Number (EIN) is a crucial step, and the best part is—it’s completely free through the IRS!

Here’s what you need to know about getting an EIN:

First, it doesn’t cost a thing. You can apply online directly through the IRS website at no charge. The process is quick and straightforward, making getting your EIN in just a few minutes easy. To apply, you’ll need to be authorized to receive the EIN for your business, so make sure you have that covered before starting the application.

Why is an EIN important?

You’ll need it for key business activities like filing federal taxes, opening a business bank account, and hiring employees. It’s a small but essential part of setting up your LLC for success.

Delaware Annual Franchise Tax ($300/annually)

In Delaware, every LLC must pay an Annual Franchise Tax of $300. This fee is due each year by June 1. It’s a mandatory payment that keeps your LLC in good standing with the state.

Your first payment is required the year after your LLC is formed. For example, if your LLC is approved in 2024, the first tax payment is due by June 1, 2025. It is crucial that missing this timeline can result in penalties.

Delaware’s LLCs, Limited Partnerships (LPs), and General Partnerships (GPs) are subject to this tax. If you miss the deadline, you could face a late fee of $125, which can quickly add up. Fortunately, the payment process is straightforward and can be done online through the Delaware Division of Corporations website.

It’s important to understand that this tax is flat and doesn’t depend on your LLC’s income. Also, while LLCs don’t need to file an annual report in Delaware, the tax payment is still a requirement.

To avoid any issues, mark your calendar for each year’s payment date and record your payment. Timely payment helps ensure your LLC remains in good standing and avoids unnecessary fees or complications.

Fictitious Name/DBA Cost in Delaware ($25)

In Delaware, if you want to operate your business under a name different from your official business name, you must file a “Doing Business As” (DBA) registration.

The cost to register a DBA is $25 per county. If you plan to operate in multiple counties, you must pay $25 for each county where you register. Keep this in mind if your business activities span across several locations.

Here are a few key details:

• You don’t need to renew your DBA once it’s registered. It stays active indefinitely.
• The registration must be filed in the Office of the Prothonotary in the counties where you do business.

Before filing, be sure to choose a unique business name. Double-check that the name is available and doesn’t conflict with existing businesses. This extra step ensures a smooth registration process and avoids potential issues later.

LLC Name Reservation Fee in Delaware ($75)

When starting an LLC in Delaware, you may want to reserve your desired LLC name before filing. Reserving the name ensures it’s available when you’re ready to officially form your LLC.

You must apply to reserve a name; the fee is $75.

Here are a few important details:

• Reservation Duration: Once reserved, your name is held for 120 days.
• Processing Time: Standard processing typically takes about 15 days.
• Eligibility: Name reservation applies to all LLCs, C-corporations, S-corporations, and other entities.

You can conveniently complete the name reservation online using your checking or savings account. This streamlined process saves time and simplifies securing your preferred name.

Reserve your name before filing to avoid potential issues with naming your LLC later.

Delaware Certificate of Good Standing ($50)

A Delaware Certificate of Good Standing is an essential document for your LLC. It serves as proof that your business is in compliance with state regulations and remains in good standing.

In Delaware, you can choose between two types of certificates. The Short Form Certificate costs $50 and includes your entity’s name and current status. The Long Form Certificate, priced at $175, provides more detailed information about your business’s history.

The process for obtaining the Short Form Certificate is straightforward. You must submit your request in writing to the Division of Corporations and include payment for the certificate.

Remember that a Certificate of Good Standing is only valid for a limited time. It’s important to check your status to ensure compliance with state requirements regularly.

Foreign LLC Registration Fee ($200)

If your business is established outside of Delaware but wants to operate within the state, you must register as a Delaware foreign LLC. This process requires a one-time payment of $200.

To get started, first, complete the Certificate of Registration, which confirms your business’s details. You then need to submit this form to the Delaware Division of Corporations. You can choose to do this either online or by mail. Once submitted, you must wait for the state to review and approve your application.

Remember, the $200 fee is a one-time payment. To prevent processing delays, ensure you have all the necessary information ready.

By registering as a foreign LLC, you can legally conduct business in Delaware while complying with state laws. You must also appoint a registered agent in Delaware to receive legal documents and official notices on behalf of your LLC.

Delaware State Business License Fee ($75/annually)

In Delaware, obtaining a state business license is essential to operate your LLC legally. This license costs $75 per year for your first business location. If you have multiple locations, each additional one will require its own license, costing $25 per year.

The key points to remember are that the annual fee is $75 for the first location and $25 for each additional location. You need to renew your license yearly, but you can also pay for up to three years in advance.

Additionally, local city or county permits might be required depending on your area. Check for specific licensing requirements in your local jurisdiction to stay compliant and avoid potential fines or legal issues.

Delaware LLC Taxes (varies, filed and/or paid every year)

When you form an LLC in Delaware, you’ll encounter several types of taxes that may apply to your business. Understanding these can help you plan your finances better.

• Annual Franchise Tax: You must pay an annual franchise tax of $300 for your LLC, regardless of business activity.
• Federal Taxes: If your LLC has multiple members, file a 1065 Partnership Return and issue Schedule K-1 forms to report each owner’s share of profits.
• State Income Tax: Delaware personal income tax applies to any profits you take from the LLC, ranging from 2.20% to 6.60%.
• Local Income Tax: Local income taxes may apply depending on your business’s location, with rates varying by locality.
• Business Taxes: Industry-specific business taxes may apply depending on your sector.
• Self-Employment Taxes: As an LLC owner, you might need to pay self-employment taxes on your earnings.
• Sales and Use Tax: You may need to collect sales tax if you sell goods or services.
• Payroll Tax: If you have employees, you must handle payroll taxes, including Social Security and Medicare.
• Property Tax: Local property taxes apply if your LLC owns property.

Consult with a tax professional to ensure you meet all your tax obligations.

Delaware LLC reinstatement fee ($200)

If your LLC in Delaware has been dissolved or expired, you can reinstate it by paying a $200 fee. You must file a Certificate of Revival with the Delaware Division of Corporations to begin reinstatement.

Processing typically takes 10-15 days, though during peak periods like March, June, and December, it might extend to 3-4 weeks. If you need a quicker turnaround, you can opt for expedited service: $100 for 24-hour processing or $200 for same-day service.

In addition to the reinstatement fee, you might also want certified copies of your documents, which incur an extra fee of $50. To avoid delays, gather all necessary documents before submitting your request, as this will help streamline the reinstatement process.

Delaware LLC dissolution fee ($200)

When you decide to dissolve your LLC in Delaware, a fee is involved. The cost to file a Certificate of Cancellation is $200.

You should be aware of several key points regarding this fee:

• Payment Methods: You can pay this fee directly when you file your cancellation. Payment can be made via check, credit card, or other methods outlined by the Delaware Division of Corporations.
• Extra Costs: If you want a certified copy of your Certificate of Cancellation, it will cost an additional $50. You may also opt for expedited service for a higher fee.
• Importance of Filing: Paying this fee is essential for officially closing your LLC. Without it, your LLC may remain active, leading to ongoing fees and responsibilities.

Completing your dissolution correctly ensures that you will not face future liabilities associated with the LLC. Always double-check the filing requirements to avoid any mistakes.

Delaware LLC Change of Registered Agent fee ($50)

If you need to change your Delaware Registered Agent, there is a $50 state filing fee. This fee applies to both LLCs and corporations.

You must file a form with the Delaware Division of Corporations to initiate the process. The form can be signed by anyone authorized to act on behalf of your LLC. Make sure to provide all required information accurately to avoid any issues.

You can complete this change through various registered agent services, which may handle the paperwork. Sometimes, these services offer free change if you switch to their service.

Keeping your Registered Agent information current is crucial for compliance with state laws and receiving important legal documents immediately. The $50 fee is a small investment in maintaining your business’s compliance and smooth operation.

What is the Cheapest Way to Start Delaware LLC?

Starting an LLC in Delaware can be accomplished through several methods, each with benefits and costs.

Firstly, you can choose the DIY approach, where you handle the entire process yourself. This involves filling out and filing a document called the Certificate of Formation, with a filing fee of $90. This is the most cost-effective method as it does not involve additional professional help charges.

Alternatively, you can use an online service such as Northwest or LegalZoom. These services assist with filing but usually charge service and state fees. For instance, Northwest charges around $39 plus the state fee. This option is still relatively affordable but costs more than the DIY approach.

Lastly, hiring a lawyer is another option. This provides professional assistance, which can benefit more complex situations but is the most expensive route. Legal fees for this service can range from $300 to $1,000 or more. While this option offers expert guidance, it costs significantly more.

Should You Use an LLC Formation Service in Delaware? (here’s why)

Starting an LLC in Delaware can be straightforward, but you might wonder if using a formation service is worth it. Here are some benefits to consider.

• Expert Assistance: A service like Northwest Registered Agent gives you access to LLC formation experts and attorneys. They can guide you through the process and answer any questions.
• Peace of Mind: Forming an LLC involves several steps. With a service, you can relax knowing your paperwork is handled correctly. It reduces the stress of filing mistakes or missing deadlines.
• Compliance Made Easy: An LLC must stay compliant with state regulations. A formation service often helps keep track of important dates, like your annual tax payment of $300 due by June 1. This means fewer headaches for you.
• Privacy Benefits: Many formation services offer privacy protection. They can act as registered agents, shielding your personal information from public records. This can be a big plus if you value your privacy.

Yet, there are some downsides.

• Cost: Formation services charge a fee, usually in addition to the $90 state filing fee. You’ll need to budget for that extra expense.
• Less Control: If you prefer handling things directly, using a service might seem less personal. You might feel like you’re not fully in control of the process.

Ultimately, deciding whether to use a formation service comes down to your comfort level with paperwork and regulations.

Frequently Asked Questions

What Are The Ongoing LLC Operational Costs in Delaware?

When you have an LLC in Delaware, consider several ongoing costs. You must pay an annual franchise tax of at least $300 each June. A registered agent fee is around $100 to $300 annually if you use a service.

Additional expenses include business licenses, which can range from $50 to several hundred dollars annually, and accountant or bookkeeping services, which may cost between $200 and $2,000 annually. Be sure to account for these expenses to manage your LLC’s finances and maintain good standing effectively.

How much does it cost to reinstate an LLC in Delaware?

Reinstating a dissolved LLC in Delaware costs $200. You must also settle any outstanding franchise taxes or penalties. Be sure to check your LLC’s specific status for any additional requirements.

How much does it cost to dissolve an LLC in Delaware?

Dissolving an LLC in Delaware requires a $200 filing fee for the Certificate of Cancellation. It’s important to resolve any outstanding taxes or liabilities before you file to avoid complications.

Do I need to hire an attorney to form an LLC in Delaware?

You do not need an attorney to form an LLC in Delaware; you can file the necessary documents yourself. However, consulting with a lawyer can be beneficial for addressing complex legal questions or business structures.

Are there penalties for paying my fees late in Delaware?

Yes, there are penalties for late payment of LLC fees in Delaware. If you fail to pay the annual franchise tax on time, you may incur a penalty and additional interest on the overdue amount. This can lead to the administrative dissolution of your LLC.

Is Delaware an excellent state in which to start an LLC?

Delaware is often considered a favorable state for LLC formation. It has a business-friendly legal environment and established courts for handling corporate disputes. The state’s privacy laws also protect the identities of LLC owners.

What happens if I do not file my Delaware LLC Annual Franchise tax?

Not filing the annual franchise tax can lead to penalties or administrative dissolution of your LLC. This must be submitted annually to keep your business in good standing. Make sure to file it on time to avoid complications.

Why is Delaware LLC so popular?

Delaware LLCs are popular due to their business-friendly laws, robust legal framework, and privacy protections. The state offers members and managers flexible operating structures and strong legal protections. The state’s lack of a state income tax on out-of-state earnings also adds to its appeal, making it a preferred choice for many businesses, especially those seeking investment.