What Does It Cost to Form a Delaware LLC?

By Cindy DeRuyter, J.D.

What Does It Cost to Form a Delaware LLC?

By Cindy DeRuyter, J.D.

Delaware has long been a popular state for registering business entities, in part because of a legal environment that favors businesses. If you are considering establishing a limited liability company (LLC) and are evaluating various states to determine where you should register your new business, one important consideration is the initial cost to do so.

Colorful paper map of Delaware

As with other states, Delaware has a fee schedule publicly available on its Division of Corporations website. Fees excerpted for this article are current as of April 1, 2018.

Types of Fees

Because of the benefits LLCs and other businesses enjoy in Delaware, you might expect fees to be higher than in other states. However, it is relatively inexpensive to establish and maintain a Delaware LLC. The fees required depend on how quickly you want your new LLC established and whether you choose additional optional services.

Name Reservation

You are not required to file for name reservation in Delaware. However, if you have a name for your new business but are not quite ready to establish the LLC, filing for name reservation can protect that name for up to 120 days. The fee to reserve a business name is $75.

Certificate of Formation

In order to form a Delaware LLC, you must submit a certificate of formation, which establishes the name and address for your LLC as well as the name and address of your registered agent. The certificate of formation demonstrates that your LLC has been registered with the state.

The filing fee for a domestic LLC in Delaware is $90. However, if you want your certificate of formation processed within 24 hours, you must pay an additional $50 fee. Same-day service is available for $100.

Conversion Fees

When converting another type of business to an LLC or moving an LLC from another state to register it as a Delaware LLC—a process called domestication—the standard filing fee is $200. The same-day fee is an additional $200, and the fee for a 24-hour turnaround is $100.

Corrections and Changes

Take care when submitting your certificate of formation. Correcting an error on your form after submission costs $200. Similarly, making changes to the registered agent and address also cost $200, while the fee for changing only the registered agent is $50.

Annual Fees

Unlike Delaware corporations, LLCs in Delaware do not need to file annual reports. However, you should plan to pay the annual LLC tax, currently $300, by June 1 each year.

Certified Copies

If you need a certified copy of your certificate of formation, they are available for $50 per document. Certified copies may be required for banking or other purposes.

Expedited Processing Costs

If time is of the essence when establishing your new LLC, the state also offers one-hour priority service for a $1,000 fee and two-hour priority service for $500.

Additional Registration Requirements

If your LLC has or will have employees, you will also need to register with the Delaware Division of Revenue, the Delaware Division of Unemployment Insurance, and the Delaware Office of Workers Compensation. Fees for this registration range from $3 to $750, depending on the industry and type of business. This additional registration can be done through the state's Combined Registration Application or through its One Stop Business Registration and Licensing System.

Forming a Delaware LLC can be inexpensive, compared to doing so in other states. If cost is your main concern, then consider Delaware for setting up your business.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.