Delaware Business Compliance Checklist
Delaware is the corporate capital of America — 68% of Fortune 500 companies are incorporated here, driving its unique legal environment. This page covers everything from filing fees to sales tax to hiring laws.
$110
None
Not required
None
Yes
1. Entity Formation
| LLC filing fee (Articles of Organization) | $110 |
| Corp filing fee (Articles of Incorporation) | $89 |
| Registered agent required | Yes — must have a physical address in the state |
| Publication requirement | No |
| Processing time | ~7 business days (expedited available for extra fee) |
2. Annual Maintenance
| Annual/periodic report | Not required |
| Franchise tax | $300 flat annual tax on LLCs; corp franchise tax varies by share count/assumed par (min $175). |
3. Sales Tax
Delaware has no state sales tax. You still need to check for local option taxes and any use-tax obligations.
Need to check nexus across multiple states? Use our Sales Tax Nexus Checker.
4. Employer Requirements
| Minimum wage | $15.00/hr (2025) |
| Paid sick leave law | None (federal only) |
| Non-compete enforceability | Enforceable — reasonable scope and duration required |
| Contractor classification test | Common-law (IRS) test |
Full employment law breakdown: Delaware Hiring Laws.
5. Workers' Compensation
Delaware allows private-market workers' comp insurance (competitive market). Coverage is required starting with your first employee.
Estimate your premium with our Workers' Comp Calculator.
6. State Income Tax
Progressive brackets — top marginal rate is 6.6%.
Compliance by Business Structure
Pick your structure to see structure-specific compliance items.
What Makes Delaware Distinctive
Compliance quirks and rules that separate Delaware from other states — worth understanding before you file.
- Delaware's Court of Chancery specializes in corporate law disputes — no juries, judges are experts in business cases; a major reason for Delaware incorporation.
- Delaware LLC annual tax is a flat $300 — same for all LLCs regardless of size or activity, due June 1.
- Delaware corporation franchise tax is more complex: minimum $175 (Assumed Par Value method) or based on authorized shares — can reach $200K+ for large corps.
- Delaware allows LLC/corp formation without publicly disclosing owner names — a privacy feature drawing many out-of-state formations.
- Delaware doesn't require LLCs to file annual reports (only pay the $300 tax), but corporations must file annual reports.
This is a reference, not legal advice.
State fees and rules change. Verify current values with the Delaware Secretary of State, Department of Revenue, and Department of Labor before filing. For complex situations, consult a licensed CPA or attorney.