Delaware Business Overview

Your Delaware Company Formed By:

03:19:51 AM
Corporation
Thursday
February 23rd
LLC
Thursday
February 23rd

Starting a Business in Delaware

The Basics

Customers like you have been choosing IncorporateFast.com for years when forming a new Delaware LLC or a new Delaware corporation because of our customer service and vast filing experience.

Upon placement of your order, one of our knowledgeable staff reviewers will conduct a preliminary name search – noting potential conflicts within Delaware, prepare and file your articles of organization with the Delaware Secretary of State, and see that the filing gets approved with as little delay as possible. Once your articles of organization have been filed/approved by the Delaware Division of Corporations, your new legal business entity has been officially created.

Business Maintenance

Doing Business in Delaware

All Delaware Corporations and LLCs Must File: 

  • Certificate of Formation
    File your Certificate of Incorporation or Certificate of Formation with the Delaware Secretary of State and pay the fee.
  • Delaware Annual Franchise Tax Report
    All Delaware business entities have to file an annual report and/or pay an annual tax. Delaware corporations pay a minimum of $175 in franchise taxes. Delaware LLCs have to pay an annual tax of $300.

Delaware Business Taxes

Individual Income Tax
Delaware Income tax rates are calculated as follows: Base + (Rate  (Income – Range start).

Income:                      Base:              Rate:

$0 – $2000                 $0                    .0
$2000-$5000            $0                    .022
$5000-$10000          $66                 .039
$10000-$20000        $261               .048
$20000-$25000        $741               .052
$25000-$60000        $1001             .0555
$60000+                      $2943.50      .066
Corporate Business Tax
Delaware corporations are subject to an 8.7% corporate tax rate on federal taxable income allocated and apportioned to Delaware. Put very basically, this tax applies to business activities in Delaware.

Delaware Business License

If you want to do business in Delaware, you need to apply to the Division of Revenue for a Delaware Business License. The business license application also registers your business for the Gross Receipts Tax and Income Tax Withholding. You can complete the Combined Registration Application by mail or online.

Why do so many businesses choose Delaware?

While most businesses choose to organize in their home state, many entities choose Delaware and the state’s various benefits. First and foremost, Delaware General Corporation Law is considered by many professionals to be very flexible and business friendly. The Delaware Court of Chancery is over 200 years old and this court has provided the backbone for much of corporate case law within the United States.