Delaware LLC Compliance Guide
Everything you need to legally form and operate a LLC in Delaware. Filing fees, tax forms, ongoing requirements, and the trade-offs of this structure.
Is a LLC Right for You?
Most small businesses. Liability protection with minimal formality. Owner-operated shops, side businesses, rentals.
Self-employment tax on all profits until you elect S-Corp. Some states charge franchise tax or high annual fees.
Tax treatment
Pass-through by default. Can elect S-Corp taxation. No entity-level federal tax.
| Item | Delaware Requirement |
|---|---|
| Formal state filing required | Yes — file Articles of Organization with the Delaware Secretary of State. |
| State filing fee | $110 |
| Federal tax form filed | Form 1065 (multi-member) or Schedule C (single-member) |
| Employer Identification Number (EIN) | Required — apply free at irs.gov (5 minutes online) |
| Registered agent required | Yes — must have a physical Delaware address available during business hours. |
| Annual/periodic report | Not required |
| Franchise tax | $300 flat annual tax on LLCs; corp franchise tax varies by share count/assumed par (min $175). |
| State income tax | Pass-through — owners pay Delaware personal income tax on business income. Top rate 6.6%. |
Filing Sequence in Delaware
- 1
Choose a business name
Search Delaware SoS name database. Reserve the name if desired (~$25 fee, optional).
- 2
Get an EIN from the IRS
Free at irs.gov. Takes ~5 minutes online. Required for all business banking, payroll, and tax filings.
- 3
File formation documents ($110)
Submit Articles of Organization to Delaware Secretary of State. Include registered agent info. Processing ~7 business days.
- 4
Register for state taxes
Delaware has no state sales tax. Register with Delaware Department of Revenue for state income tax withholding if hiring employees.
- 5
Open a business bank account
Separate business finances from personal. Bank will require EIN, formation docs (for entities), and often an operating agreement.
Compare Other Structures in Delaware
Not legal or tax advice.
State filing requirements change. Verify fees and deadlines with the DelawareSecretary of State and Department of Revenue before filing. Structure choice has tax and liability implications — consult a licensed CPA or attorney for your specific situation.