Delaware LLC Fees 2026: Formation, Franchise Tax, and Registered Agent
Delaware is the most famous state for forming an LLC, and also one of the most misunderstood. The formation fee looks cheap. The annual bill is where the real cost lives.
This guide covers every Delaware LLC fee in 2026: the $110 formation filing, the $400 annual tax, registered agent costs, and the penalties that punish owners who forget June 1.
The Short Answer
Forming a Delaware LLC costs $110 in state fees. Keeping it costs $400 per year in annual tax, due June 1, plus $50 to $300 per year for a registered agent if you do not have a Delaware address.
A realistic first-year total for an out-of-state owner is $260 to $510. Every year after that runs $450 to $700. Delaware is not a budget state. It is a prestige and legal-infrastructure state.
| Cost item | Amount | Frequency |
|---|---|---|
| Certificate of Formation | $110 | One-time |
| Annual LLC tax | $400 | Yearly, due June 1 |
| Registered agent | $50 to $300 | Yearly |
| EIN from the IRS | Free | One-time |
| Name reservation (optional) | $75 | One-time |
| 24-hour expedited filing (optional) | $50 | One-time |
The $110 Certificate of Formation
Delaware LLCs are formed by filing a Certificate of Formation with the Delaware Division of Corporations. The fee is $110, flat, regardless of members or revenue.
The certificate itself is minimal: LLC name, registered agent, and organizer. Delaware does not ask for member names or ownership details on the public filing, which is part of its privacy appeal. Standard processing takes a few weeks during busy season.
Expedited processing options
If you are in a hurry, Delaware sells speed. Twenty-four-hour processing adds $50, same-day adds $100, and two-hour service adds $500. Most filers do not need these.
A $75 name reservation holds your chosen name for 120 days. It is optional, but useful if you are still finalizing branding before you file.
The $400 Annual Tax
Here is the number most guides get wrong. Delaware LLCs pay a flat annual tax of $400, due June 1 every year. There is no annual report to file for LLCs. You simply pay.
This figure comes straight from the Delaware Division of Corporations, which states that all domestic and foreign LLCs must pay the $400 yearly tax on or before June 1. It applies whether your LLC earned a million dollars or nothing at all.
The penalty for missing June 1
Delaware does not send friendly reminders. Miss the deadline and you owe a $200 penalty plus 1.5 percent interest per month on the tax and penalty. A single missed year can cost you over $600.
Let it slide longer and Delaware will void your LLC, which strips your liability protection until you revive it. Calendar June 1 the day you form. Better yet, pay the tax the same week you file your formation documents each year.
Registered Agent Costs
Delaware requires every LLC to maintain a registered agent with a physical Delaware address. If you live in Delaware, you can serve as your own agent for free.
Everyone else needs a commercial agent. Budget providers charge around $50 to $100 per year, while premium services run $200 to $300. Price is not the only factor: a good agent forwards legal documents fast and keeps your personal address off public records.
Some formation companies include the first year of agent service free, then charge $125 to $300 on renewal. Read the renewal price before you sign up, not after.
Costs People Forget
The state fees are only the foundation. These extras apply to many Delaware LLCs.
Foreign qualification back home
If you operate in another state, you must register there as a foreign LLC and pay that state fees. A Delaware LLC owned by a California resident, for example, pays Delaware $400 plus California $800 minimum franchise tax every year.
This double cost is the most common Delaware budgeting mistake. Unless you are raising venture capital or specifically need Delaware law, forming in your home state is usually cheaper. Compare the trade-offs in our Wyoming vs Delaware breakdown.
Business licenses
Delaware requires most businesses to hold a state business license, which starts around $75 per year and renews annually. Certain industries need additional permits at the state or local level.
Operating agreement and EIN
An operating agreement is not filed with Delaware, but you should still have one. Templates work for single-member LLCs; multi-member LLCs benefit from attorney review. Your EIN is free from irs.gov in about five minutes.
LLC Tax vs Corporation Franchise Tax
People confuse these constantly, so let us be precise. Delaware LLCs pay a flat $400 annual tax. No report, no calculation, no authorized-shares math.
Delaware corporations are a different animal. They file an annual report and pay franchise tax calculated by one of two methods, often $400 to several thousand dollars. If you read a scary article about a massive Delaware franchise tax bill, it was about a corporation with millions of authorized shares, not an LLC. LLC owners never face that calculation.
Delaware vs the Alternatives
Delaware annual cost is steep compared to the budget states. Here is the honest comparison on state fees alone.
| State | Formation fee | Annual state cost |
|---|---|---|
| Delaware | $110 | $400 |
| Wyoming | $100 | $60 |
| New Mexico | $50 | $0 |
| Nevada | $425 | $350 |
Delaware costs more every year than Wyoming and New Mexico combined. What you buy is the Court of Chancery, deep case law, and investor familiarity. For a detailed cost picture, see our Wyoming LLC cost guide and the full cheapest states to form an LLC ranking.
Who Should Actually Form in Delaware
Delaware earns its fees for three kinds of owners. Startups planning to raise venture capital benefit because investors know Delaware law and expect Delaware entities. Companies that want access to the Court of Chancery, the country most experienced business court, get a legal system built for disputes. Holding companies with assets in multiple states value the privacy and predictability.
Everyone else should run the numbers honestly. A freelancer in Ohio, a landlord in Georgia, or an e-commerce seller in Texas gains nothing from Delaware law that the home state cannot provide, and pays $400 a year for the privilege. Compare your real options in our 50-state LLC fee comparison.
Frequently Asked Questions
How much is the Delaware LLC annual tax in 2026?
It is $400 per year, due June 1. This is a flat tax that applies to every LLC, with no annual report filing required. The Delaware Division of Corporations confirms this figure on its official tax instructions page.
What happens if I do not pay the Delaware annual tax?
You owe a $200 penalty plus 1.5 percent monthly interest on the tax and penalty. Continued nonpayment leads to the LLC being voided, which ends your liability protection until you pay everything owed and revive the entity.
Do Delaware LLCs file an annual report?
No. Unlike corporations, Delaware LLCs, LPs, and GPs do not file annual reports. They only pay the $400 annual tax. Do not confuse this with the franchise tax reports that Delaware corporations file.
Can I be my own registered agent in Delaware?
Only if you have a physical street address in Delaware and are available during business hours. Most out-of-state owners hire a commercial agent for $50 to $300 per year.
Is Delaware worth it for a small business?
Usually not on cost alone. Delaware makes sense for startups planning to raise venture capital, companies that want Chancery Court precedent, and holding companies. A local freelancer or e-commerce seller typically pays less by forming at home.
Does Delaware have sales tax or income tax advantages for LLCs?
Delaware has no sales tax, which helps businesses selling goods. But LLC profits generally pass through to owners, who pay income tax where they live and work. Forming in Delaware does not erase your home state tax bill. The SBA guide to business structures explains pass-through taxation clearly.
Delaware is a premium jurisdiction with premium pricing. Budget $400 every June 1, keep a registered agent in place, and register in your home state if you operate there. Miss the June 1 deadline even once, and the $200 penalty plus monthly interest will cost you more than a full year of LLC fees in Wyoming or New Mexico combined. To see how we verify every fee on this site, visit about LLC Lane.
