How to start an LLC in Delaware
A step-by-step guide to forming and maintaining an LLC in Delaware — including the $110 filing fee, ongoing costs, registered agent rules, and taxes.
Last reviewed: June 2026
Delaware LLC overview
Forming an LLC in Delaware starts with filing your formation documents and paying the $110 state filing fee. Delaware does not require an annual report, which keeps ongoing paperwork light. LLCs pay a flat $300 annual franchise tax instead of an annual report.
An LLC gives you personal-asset protection and pass-through taxation, and it’s usually straightforward to set up yourself. Below you’ll find the exact steps, a full cost breakdown, the tax picture, and answers to the most common Delaware LLC questions.
How to form an LLC in Delaware: 7 steps
- 1
Name your Delaware LLC
Your name must be distinguishable from other Delaware businesses and include a designator such as “LLC” or “Limited Liability Company.” Avoid restricted words (like bank or insurance) unless you qualify. Search the official Delaware business database to confirm availability, then secure a matching domain before you file.
- 2
Appoint a registered agent
Delaware requires every LLC to maintain a registered agent with a physical street address in the state to receive legal notices and government mail. You can act as your own agent if you have a Delaware address and are available during business hours, or hire a service (around $125/year) for privacy and reliability — non-US founders generally must use a service.
- 3
File your formation documents
Officially create your LLC by filing your formation documents (commonly called the Articles of Organization) with the Delaware Secretary of State and paying the $110 state filing fee. Online filings are usually processed fastest; mailed filings take longer, and expedited processing is often available for an extra fee.
- 4
Create an operating agreement
An operating agreement isn’t always legally required, but every Delaware LLC should have one. It documents ownership, management, voting, and profit-sharing, and reinforces your liability shield — especially for multi-member LLCs. You can generate a free draft and have an attorney review it.
- 5
Get an EIN from the IRS
An EIN (federal tax ID) is free from the IRS and is needed to open a business bank account, hire employees, and handle taxes. U.S. founders with an SSN can apply online in minutes; non-US founders without an SSN can still get one by filing Form SS-4 by fax or mail.
- 6
Open a business bank account
Keep your business and personal finances strictly separate to protect your liability shield. Open a dedicated business bank account using your approved Delaware formation documents, your EIN, and your operating agreement.
- 7
Stay compliant year after year
Delaware does not require an annual report, which keeps ongoing paperwork light — but you still need to renew your registered agent and meet your federal and Delaware tax obligations to stay in good standing.
Delaware LLC cost breakdown
Here’s what forming and running a Delaware LLC typically costs. A realistic first-year estimate is around $235 if you hire a registered agent — less if you act as your own.
| Item | Cost | Notes |
|---|---|---|
| Delaware state filing fee | $110 | One-time, paid when you form your LLC. |
| Registered agent | ~$125/yr | Optional — only if you hire a service instead of being your own agent. |
| Annual report | Not required | LLCs pay a flat $300 annual franchise tax instead of an annual report. |
| Operating agreement | $0–$200 | Free with a DIY template, or more through a legal service. |
| EIN (federal tax ID) | Free | Issued directly by the IRS. |
Annual report & ongoing compliance
Good news: Delaware does not require LLCs to file an annual report, so there’s no recurring report fee. You still need to keep a valid registered agent and stay current on your federal and Delaware taxes to remain in good standing.
Our free Compliance Reminder Planner builds a calendar of your key deadlines (with .ics export) so nothing slips.
Taxes for Delaware LLCs
By default, a Delaware LLC is a pass-through entity: the business itself usually pays no federal income tax, and profits flow to the owners’ personal returns. As an owner you’ll typically owe federal income tax plus self-employment tax (15.3% for Social Security and Medicare) on your share of the profit.
Delaware levies a state income tax, so your pass-through profits are generally subject to Delaware income tax in addition to federal tax. Confirm current rates and brackets with the Delaware Department of Revenue.
If you sell taxable goods or services, you may also need to register for and collect Delaware sales tax. Once profits are consistently high, it’s worth checking whether an S-Corp election could lower your self-employment tax.
Delaware is good for
- Startups planning to raise
- Established business law
- Privacy
Watch out for
- Venture-backed startups often choose a Delaware C-Corp, not an LLC — compare carefully.
- The $300 annual franchise tax makes it costlier than Wyoming or New Mexico for small LLCs.
Should you form your LLC in Delaware?
If you live or do business in Delaware, forming here is usually simplest — operating in a state typically means you have to register (and pay) there anyway. If you’re an online or non-US founder with no physical presence, it’s worth comparing Delaware with low-cost, privacy-friendly states like Wyoming and New Mexico.
Compare Delaware with other statesOfficial Delaware resources
Fees and rules change — always verify the current amounts on the official Delaware website before filing. Last reviewed June 2026.
Frequently asked questions
The Delaware state filing fee is $110. Optional costs include a registered agent service (~$125/year) and an operating agreement. Use our free LLC Cost Calculator for a personalized estimate.
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This tool provides educational estimates and general guidance only. It is not legal, tax, accounting, or financial advice. Always verify requirements with official government sources or consult a qualified professional before making decisions.
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