How to Start an LLC in Delaware
Delaware is the default for startups raising money and for holding companies, thanks to its Court of Chancery, its mature series LLC law, and privacy at formation. For a typical small business the appeal is thinner than its reputation: $110 to file, a flat $300 tax every June 1, a required Delaware registered agent you likely pay for, and, if you operate elsewhere, a second registration in your home state. Form here for the legal framework, not to save tax.
How much does an LLC cost in Delaware?
The mandatory state cost is $110 to file. Here is the full mandatory-fee picture over a five year horizon, from the same verified state data behind our LLC cost calculator:
| When | What | State fee |
|---|---|---|
| Year 0 | Formation filing | $110 |
| Years 1-5 | No recurring report | $0 |
| 5-year total | mandatory state fees only | $110 |
Also budget: $300 flat annual tax due on or before June 1 ($200 penalty plus interest if late).
Report timing: No annual report for LLCs. Optional costs (a registered agent service, expedited handling, name reservation) come on top of these mandatory fees, and formation-service packages are separate from state fees entirely.
The steps, Delaware edition
Clear the name
Search the state's registry via Delaware Division of Corporations. The name needs a designator: Limited Liability Company, L.L.C., or LLC. Reservation, if you want it: $75, holds the name 120 days.
Line up the registered agent
An in-state street address that can receive legal papers during business hours; you can serve yourself or pay a service. Every Delaware LLC must name a Delaware registered agent. Out-of-state owners almost always hire one, an annual cost the $110 filing fee hides and the main reason a Delaware LLC costs more to keep than it first looks. The rules and tradeoffs are in our registered agent guide.
File the formation document
$110 (Certificate of Formation filed with the Division of Corporations). Processing: Delaware's standard turnaround varies with volume; the state is built around paid expedite, which most filers use to lock in a time.
Faster options:
- Next-day (24-hour): $50 to $100
- Same-day (in by 2:00 pm ET): $100 to $200
- Two-hour (in by 7:00 pm ET): $500
- One-hour (in by 9:00 pm ET): $1,000
Get the EIN, free
Minutes at irs.gov, no charge, no service needed.
Adopt an operating agreement and open the bank account
Not filed with the state, but banks ask for the agreement, and the separate account is what keeps the liability protection real. The general playbook is in our six-step guide.
Calendar the recurring obligations
No annual report for LLCs, but a flat $300 annual LLC tax due June 1 every year, with a $200 penalty plus interest if it is late.
Delaware taxes and recurring costs, straight
$300 annual franchise tax
Every Delaware LLC owes a flat $300 a year regardless of income or activity, due June 1. There is no annual report to file, just the tax.
Delaware income tax only if you operate there
An LLC that does no business in Delaware generally owes no Delaware income tax, which is part of the holding-company appeal. But you still owe income tax wherever you actually do business, so out-of-state owners rarely save tax by forming here.
For the raw fee lines next to every other state, see the 50-state cost table or run your numbers in the LLC cost calculator.
DE specifics most guides skip
- Series LLCs: Yes. Delaware created the series LLC (Delaware LLC Act, 6 Del. C. 18-215) and now also offers registered series, which is why so many fund and holding structures are Delaware entities.
- Agent procedure: Every Delaware LLC must name a Delaware registered agent. Out-of-state owners almost always hire one, an annual cost the $110 filing fee hides and the main reason a Delaware LLC costs more to keep than it first looks.
Thinking about using a formation service?
Every service pays Delaware's same state fees. We compare what they charge on top, and what the $0 tiers actually include.
See the comparisonDelaware LLC questions, answered
How much does a Delaware LLC cost?
$110 to file the Certificate of Formation, then a flat $300 annual LLC tax due June 1 every year. Budget also for a Delaware registered agent, which most out-of-state owners must hire, and, if you operate in another state, that state's foreign-registration fees on top.
Does a Delaware LLC save me taxes?
Usually not for an operating business. Delaware does not tax income from activity outside the state, but you still owe income tax wherever you actually do business, and you would register there as a foreign LLC anyway. The Delaware advantage is legal and structural, not a tax dodge.
How fast can I form a Delaware LLC?
Delaware is built around paid expedite. As of mid-2026 the tiers run from $50 to $100 for next-day up to $1,000 for one-hour service, with same-day and two-hour options in between. Standard non-expedited turnaround varies with the Division's volume.
Why do so many companies form in Delaware?
The Court of Chancery, a business-only court with deep case law, plus a flexible LLC statute, the original series LLC framework, and privacy at formation. Those matter most to companies raising investment or building holding structures, which is why the typical single-owner business gains less from it.
Other states: Arizona · California · Florida · Georgia · Illinois · Nevada · New York · North Carolina · Ohio · Pennsylvania · Texas · Wyoming
Sources
- Delaware Division of Corporations
- Delaware Division of Corporations: expedited services
- Delaware: pay LLC annual tax
General educational information, not legal or tax advice. Fees, processing times, and rules change; the figures here were verified against official Delaware sources in July 2026, and processing times especially move. Confirm with the state before filing, and consult a professional about your situation.