Starting a Business in Delaware Checklist

Check business name availability with the Delaware Department of State

Do a search to see if your business name is available:
https://delecorp.delaware.gov/tin/GINameSearch.jsp

Delaware LLC names need to end with: “Limited Liability Company” ”LLC” or “L.L.C.”

Delaware corporation names need to contain: “Association,” “Company,” Corporation,” “Club,” “Foundation,” “Fund,” “Incorporated,” “Institute,” “Society,” “Union,” “Syndicate,” “Limited” or the abbreviation “Co.,” “Corp.,” “Inc.,” “Ltd.”

Delaware Department of State

Department of State
Division of Corporations
John G. Townsend Bldg.
401 Federal Street, – Suite 4
Dover, DE 19901

File paperwork to create my business

Now you can form a new business entity by filing your paperwork with the Delaware Department of State. To form a corporation, file a Certificate of Incorporation and pay the $89 filing fee plus. To form a Delaware LLC, file a Certificate of Formation and pay the $90 fee. Normal processing takes about 2 weeks. Same day processing costs an extra $100 and 24 hour processing costs an extra $50. If you are really in a hurry, you can pay for priority handling to have your company formed in 2 hours for a $500 or in 1 hour for $1000. Make sure you include a coversheet when you mail or fax your paperwork to the Department of State.

One of the nicest features of forming a business entity in Delaware is how easy it is. Delaware requires only a limited amount of information from filers. You only need the following information to form a company here:

- Business name

- Registered agent name and address

- Effective filing date

- Filer name and signature

If you don’t want to do the filing yourself, you can incorporate in Delaware with Northwest Registered Agent.

Division of Corporations

Department of State
Division of Corporations
John G. Townsend Bldg.
401 Federal Street, – Suite 4
Dover, DE 19901
PO Box 898
Dover, DE 19903
P: (302) 739-3073
F: (302) 739-3812
corp@delaware.gov

Register with Department of Revenue

You will need to register with the Division of Revenue and pay any licensing fees before you start doing business. The easiest option is the online registration. You can register your business with the Division of Revenue, the Division of Unemployment Insurance, and the Delaware Office of Workers Compensation.

Income Tax

Corporate tax rate: 8.7%
Personal tax rate: 2.2%-6.95%

Franchise Tax

Corporations: $125 minimum – based on shares
LLCs: $250 annual tax

Gross Receipts Tax

Between .104% and 2.7% on income over about $200,000 each quarter

Department of Revenue

Department of Revenue
PO Box 8750
Wilmington, DE 19899-8750
P: (302) 577-8778
http://revenue.delaware.gov/services/Business_Tax/Step3.shtml

Get a business license

The State of Delaware Business License is issued as a result of registering with the Divisions above.

Any other registration requirements?

New Castle County:

The county doesn’t issue business licenses, but you do need to comply with other requirements such as permits/zoning. Contractors in do need a special license. New Castle County has a lot of helpful information for contractors on their website http://www2.nccde.org/landuse/Contractors/default.aspx

City of Wilmington:

You need a business license from the city. The application is available on the City of Wilmington website

Licensing Contact Info

New Castle County

Government Center
87 Reads Way
New Castle, DE 19720
P: (302) 395-5555

City of Wilmington

Department of Finance
Wage/Business License Division
800 N. French Street
Wilmington, DE 19801-3537
P: (302) 576-2415

Collect and Charge Sales Tax

Do I need to collect Delaware sales tax?

Delaware does not have state or local sales tax, but businesses do have to pay the Delaware gross receipts tax on the sale of goods.

What is the Delaware sales tax rate?

The business and occupational gross receipts tax rate ranges from 0.1037% to 2.0736%, depending on your business activity.

How do I register for Delaware sales tax?

You can use the Delaware One Stop business registration to register with the Division of Revenue online at http://revenue.delaware.gov/services/Business_Tax/Step3.shtml
You may mail in the paper Combined Registration Application form if you prefer. You can download the form from the Division of Revenue website.

How much does the Delaware business registration cost?

There is a $75 fee to file the Combined Registration Application.

Delaware Division of Revenue

Delaware Division of Revenue
Gross Receipts Tax Dept.
P.O. Box 8750
Wilmington, DE 19899-8750
(302) 577-8205
BusTax@state.de.us
http://revenue.delaware.gov/services/BusServices.shtml