How to Form an LLC in Delaware (2026): Real Costs, Real Steps

Delaware LLCs pay a $90 filing fee and face an annual $300 franchise tax—not a percentage-of-revenue scheme, just a flat fee due June 1st every year. You'll file your Certificate of Formation with the Delaware Division of Corporations, appoint a registered agent with a Delaware street address, and obtain a federal EIN. Delaware's Court of Chancery offers specialized business law expertise, but for most small businesses, forming in your home state often makes more financial sense unless you're venture-backed or need Delaware's legal predictability. This guide walks through real costs, required filings, and the six core steps to get your Delaware LLC legally operational in 2026.

Year-1 Cost Table

Delaware LLC year-1 cost breakdown (2026)
Item Cost Source
Certificate of Formation (Articles) $90 cite
Annual Franchise Tax (due June 1) $300 cite
Registered Agent (Northwest, annual) $125 cite
Same-Day Processing (optional) $100 cite
Year-1 Total (standard timing) $515 cite

The 6 Steps

  1. Step 1: File Articles of Organization

    Submit the formation document to the Delaware Secretary of State. See the cost table above for the current filing fee.

  2. Step 2: Appoint a Registered Agent

    Every Delaware LLC needs a registered agent with a Delaware street address. You can serve yourself, but most founders use a commercial RA — Northwest is our default pick.

  3. Step 3: Get an EIN (Federal Employer Identification Number)

    Apply with the IRS using your stamped Articles of Organization. Free, takes 5 minutes online.

  4. Step 4: Adopt an Operating Agreement

    Required by best practice — banks routinely request it before opening business accounts.

  5. Step 5: Open a Business Bank Account

    Mercury for software/online businesses; a local credit union for cash-heavy retail. Keep personal and business finances separate from day one.

  6. Step 6: File State Tax Registrations

    Register for Delaware state taxes (sales tax permit, payroll registration if you have employees, etc.) before you transact.

Recommended Tools

Northwest vs ZenBusiness for Delaware LLCs

Verdict (as of 2026): Northwest Registered Agent is our default pick for Delaware LLCs. They publish a Delaware-specific registered-agent page (linked in the cost table) and do not upsell add-ons at checkout. ZenBusiness wins only if you want bundled formation in a single flow.

Criterion Northwest ZenBusiness
Registered-agent only price (Delaware)$125/yr$199/yr
Bundled formationOptional add-onIncluded in formation plans
Privacy (address shielding)StrongStrong
Upsells at checkoutNoneSeveral
Annual-report filing service$100/yr add-on$199/yr add-on

Frequently Asked Questions

Why is Delaware's $300 franchise tax charged if I have zero revenue?

Delaware assesses a flat $300 annual franchise tax on every LLC regardless of income, assets, or activity. It's due June 1st and is separate from any income tax you owe to your home state where you do business.

Do I need to form in Delaware if I live in another state?

Only if you have a specific legal or investor reason. Most small businesses save money by forming in their home state. Delaware offers Court of Chancery case law and privacy, but you'll still register as a foreign LLC and pay taxes in the state where you operate.

What's the difference between Delaware's franchise tax and an annual report fee?

Delaware calls it a franchise tax, not an annual report fee. You pay $300 per year but don't file a detailed report listing members or managers—only a simple tax payment to keep your LLC active.

Can I use Northwest Registered Agent for my Delaware registered agent?

Yes. Northwest Registered Agent maintains a physical Delaware street address, meets state requirements, and charges $125/year. Every Delaware LLC must have a registered agent with a DE address to receive legal notices.

Does Delaware have state income tax on LLC profits?

Delaware has no state sales tax, but it does impose a state income tax on individuals. Single-member LLCs and partnerships pass income through to owners, who pay personal income tax in their state of residence—not Delaware—unless they live in Delaware.

Annual Filing Deadline

Delaware LLCs do not file an annual report, but must pay the $300 flat franchise tax by June 1st each year to remain in good standing.

Authoritative Sources

Other States

Skip the research — let AthenAI form your Delaware LLC