Business Licenses and Permits
How to form an LLC in Delaware
This Quick Start Guide is a brief overview of how to form an LLC in Delaware.
Delaware LLC costs:
LLC formation cost: $90 (one-time fee)
Annual franchise tax: $300 (every year)
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After your Delaware LLC is approved, you’ll need to comply with state and local license and permit requirements.
Your requirements are determined by the industry you are in and where your business is located.
Not complying with license and permit requirements is risky and can result in penalties and fines, or worse, not being allowed to conduct business in the state.
Types of licenses you may need in Delaware
Below are some license and permits examples:
- Division of Revenue State Tax ID number
- Business operation license/business privilege license
- Sales tax license
- Seller/reseller permit
- Building permit
- Health permit
- Signage permit
- Home occupation permit
- Zoning and land use permits
- Withholding taxes (if you have employees)
Industries that are more regulated usually have more requirements.
Do it yourself in Delaware with One Stop
All LLCs registered or doing business in Delaware are required to obtain a business license from the Delaware Division of Revenue.
You are required to get your business license before you start transacting business in state.
The easiest way to get your business license is through the Delaware One Stop Business Licensing and Registration Service.
One Stop helps you register with the Division of Revenue, and if you have employees, it will help you register with the Division of Unemployment Insurance and the Office of Workers Compensation.
You can obtain your business license by mail or online. We recommend filing online as the application process is much easier and faster.
Here is the link for registering by mail:
Here is the link to the online application with One Stop:
The One Stop business application link above will ask you a series of questions, determine your business industry, and let you know how much your business license fees will be.
How long does it take to receive my business license?
After filling out the One Stop application, you will receive a temporary business license. Then in 10 days, you will receive your official business license in the mail.
How long does my business license last?
Unless you order a 3-year business license, your business license generally lasts 1 year and will expire on December 31st.
When do I need to renew my business license?
Your business license needs to be renewed before December 31st every year. If you have a 3-year business license, then you need to renew it before December 31st of the 3rd year.
Are there any additional licensing/permit requirements?
Depending on your business industry and where your business is located in Delaware, your city and/or county may also require additional licenses and permits. You can contact your county or municipality for details or follow our recommendation as listed below.
For additional FAQs, please visit this link: http://revenue.delaware.gov/information/faqs_lic.shtml
There are nearly 20,000 licensing and permit jurisdictions in the United States and each has its own rules and regulations.
If you want to save time, we recommend hiring a professional service (like IncFile) company to do the research and prepare your applications.
They will provide you with a comprehensive package of all the licenses, permits and tax registrations required for your Delaware LLC, as well as the necessary application forms.
After you’ve researched and obtained the proper licenses and permits, you can then proceed to the next lesson: Taxes.