When forming a Delaware LLC, you'll pay a one-time state filing fee of $90 to file your Certificate of Formation with the Delaware Division of Corporations. While this initial cost attracts many business owners, understanding the full financial picture—including registered agent services, annual franchise taxes, and business licenses —helps you budget appropriately and avoid unexpected expenses.
Beyond the formation filing fee, Delaware LLCs face ongoing compliance costs that catch many founders off guard. The state's $300 annual franchise tax due June 1, mandatory business license requirements, and registered agent fees for out-of-state owners can transform an initially affordable filing into a substantial long-term commitment. Add professional services and industry-specific licensing, and your total investment grows considerably.
Beyond mandatory filings, several optional expenses can prove valuable depending on your LLC's complexity and operational needs.
Professional services vary based on complexity and provider expertise. Attorney fees for formation assistance typically range from $500–$2,000, especially beneficial for multi-member LLCs or entities planning to raise capital. Accountant consultations for initial tax planning start around $200–$500 and help prevent costly structural mistakes.
Business formation services charge $39–$400+ for packages that may include registered agent services and compliance support.
Additional state filings address specific business situations:
Delaware's recurring expenses create a predictable cost structure every LLC owner must budget for throughout their business lifecycle.
Delaware's cost structure benefits businesses that truly leverage the state's legal framework and Court of Chancery, but creates ongoing expenses that can exceed your home state's requirements if maintaining dual compliance obligations.
Are there any hidden fees when forming a Delaware LLC?
The biggest surprises come from foreign qualification requirements if operating outside Delaware. You'll need to register in your home state, pay additional filing fees, maintain compliance in multiple jurisdictions, and potentially hire registered agents in each state where you conduct business.
Can I get a refund if my filing is rejected?
No. Delaware considers the $90 filing fee payment for processing your Certificate of Formation, not approval. Once the Division of Corporations processes your submission, the fee is non-refundable regardless of acceptance or rejection.
Are there ongoing tax obligations specific to Delaware LLCs?
Beyond the $300 annual franchise tax and $75 business license, Delaware LLCs generally don't owe additional Delaware business taxes. However, you'll still owe income taxes in the state where you actually conduct business operations, potentially creating dual tax obligations.
What compliance costs should I expect if I operate outside Delaware?
Foreign qualification in your operational state typically costs $100–$300 initially, plus annual fees and taxes in that jurisdiction. This doubles your compliance burden and often eliminates cost savings from Delaware incorporation for companies primarily operating elsewhere.
Discern provides automated franchise tax filings, registered agent services, and real-time visibility into your compliance obligations across Delaware.
Ready to experience automated Delaware franchise tax calculations, seamless foreign qualification management, and complete compliance visibility without administrative overwhelm? Book a demo with Discern today.
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