Delaware LLC Cost: How Much to Start an LLC in Delaware?
So, you're thinking about starting an LLC in Delaware? Great choice! Delaware is known for its business-friendly environment and favorable tax laws. But, before you dive in, it's important to understand the cost involved in forming and maintaining an LLC in the First State.
It's also worth noting that while Delaware is a popular choice for forming LLCs, it may not be the most cost-effective option for every business. Take some time to consider other options such as Wyoming — our top LLC recommendation. Click here to learn more about the differences between Delaware and Wyoming for LLCs.
Remember, starting and maintaining an LLC involves more than just the initial filing fee. It's important to budget for ongoing expenses to keep your LLC in compliance with Delaware law. Consulting with a trusted advisor or attorney can help you navigate the process and ensure you have a clear understanding of the costs involved.
LLC in Delaware Cost
First, let's break down the fees and costs associated with Delaware LLCs:
When you file for incorporation, you'll need to pay a $110 filing fee to the Delaware Division of Corporations. This fee covers the processing of your LLC formation documents.
While this is a flat one-time fee, you can also pay extra for expedited service if you want to get your application approved more quickly. If you incorporate with Firstbase, we'll pay the filing fee and submit incorporation documents on your behalf.
Every LLC in Delaware is required to have a registered agent. This is a person or entity that will receive legal and tax documents on behalf of your LLC.
Keep in mind that every state has its own registered agent requirement. If you register your business in ten different states, you'll need to appoint a different registered agent in each one.
While you can technically act as your own registered agent, this only works if you actually live in Delaware and are available at the listed address during business hours. Most founders use a registered agent provider to avoid the headache. At Firstbase, we offer comprehensive registered agent services starting at just $99 per year.
Delaware has an annual franchise tax that all LLCs must pay. Note that this requirement applies to LLCs that are based in Delaware as well as those that are registered in Delaware but based in another state.
LLC franchise taxes are a flat $300 per year, making them easy to account for in your budget. Unlike some other states, Delaware doesn't charge LLCs a variable franchise tax based on revenue or profit.
This tax is due on or before June 1st of the following year. For example, your 2023 franchise tax would need to be paid by June 1st, 2024. Late payments are subject to a penalty of $200 plus 1.5% per month.
What About Annual Reports?
As a business owner, you may also be wondering about annual reports. However, in contrast to many other states, Delaware has no annual report requirement for LLCs. As long as you cover the costs above, you won't have to worry about basic compliance issues.
That said, it's important to note that these are just the basic costs of forming and maintaining an LLC in Delaware. Depending on your specific needs, there may be additional costs such as business licenses, permits, and legal fees. A restaurant, for example, would need to undergo health inspections and make sure its employees are trained in food safety.
Running a business requires constant attention to detail, so make sure to keep up with all compliance obligations as your company grows. Our Ongoing Compliance Guide is a great resource for any US business owner.
Setting up a new business might sound like a lot of work, but it's actually fairly straightforward and affordable. If you incorporate with us, we'll take the paperwork out of your hands and walk you through every step of your company's setup.
Now that you have an idea of the costs involved, you can make an informed decision about starting an LLC in Delaware. Hit the link below to begin the incorporation process and start setting up your Delaware LLC today!