How to start a business in Delaware

What do you file before you open in Delaware?

1. Pick a structure

   Most owners choose an LLC or a corporation; the S corp or C corp tax choice comes later. See Delaware LLC guide, Delaware corporation guide, S corp or C corp in Delaware. By trade: cleaning business, handyman.

2. Check and register the name

   Search the Division of Corporations records before you pick a name: state name search. Delaware trade names, often called DBAs, are registered statewide with the Division of Revenue through Delaware One Stop for a one-time $25 fee per name, and a valid Delaware business license is still required. ¹ See Delaware name search guide.

3. File with the state

   Delaware charges the state filing fee once: an LLC costs $110 ² and a corporation's articles of incorporation cost $109 ³. See LLC cost.

4. Name a registered agent

   A Delaware corporation must maintain a registered agent and registered office in Delaware; the agent can be the corporation itself or a Delaware resident individual or entity. ⁴ Our registered agent service runs through our partner Registered Agents Inc (RAI), the registered agent of record. See Delaware registered agent rules.

Which accounts do you open after you file in Delaware?

1. Get an EIN

   An EIN is the business's federal tax ID. The IRS issues it online, for free, and warns about websites that charge for one. ⁵

2. Open your state tax accounts

   The Delaware Division of Revenue handles state business registration through Delaware One Stop, which also lets an employer register a withholding account for Delaware employees. ⁶ See Sales tax permit.

3. Register as an employer

   Delaware employers register with the Division of Unemployment Insurance by filing a Report to Determine Liability when they have hired, or are about to hire, one or more employees in the state. ⁷ Delaware law requires employers to report each newly hired employee to the Delaware State Directory of New Hires within 20 days of the employee's start date. ⁸ Delaware requires employers with one or more employees to carry workers' compensation insurance, while farm workers are exempt and farm employers may elect to provide coverage. ⁹

What keeps your Delaware business in good standing?

1. Check licenses and permits

   Delaware requires any person or entity conducting a trade or business in the state to obtain a business license from the Division of Revenue, and the license must be obtained when business commences. ¹⁰

2. Calendar the yearly filings

   Delaware LLC/LP annual tax: $400, due June 1 every year. ¹¹ See Delaware annual report.

3. Use free local help

   Small business advising in Delaware runs through the Delaware SBDC. ¹² Delaware One Stop is the state's registration and licensing portal for businesses operating in Delaware, where owners can start or renew business license registrations. ¹³

What it costs to start a business in Delaware

Do you need a business license in Delaware?

Yes. Delaware requires a state-level license or registration from businesses in general; the rule is in step 8. ¹⁰ Where to look up licenses: Delaware One Stop.

• City or county business license. Depending on where a Delaware business is located, its city or county may also require a local business license in addition to the state license from the Division of Revenue. ¹⁵

How to register a business name in Delaware

Check that the name is free first: state name search.

Also in Delaware

• Delaware Paid Leave. The Delaware Department of Labor's Delaware Paid Leave program requires most businesses with 10 or more employees to participate, with contributions beginning January 1, 2025. ¹⁶

More for Delaware

• LLC guide
• Corporation guide
• Delaware LLC cost
• Name search
• Registered agent
• Delaware sales tax permit
• Annual report
• S corp or C corp

Common questions