Starting a Business in Delaware: Licenses & Permits (2026)

Last updated: February 26, 2026

Starting a business in Delaware means working with the Delaware Division of Corporations for entity formation, the Division of Revenue for your business license and tax registration, and any state licensing board relevant to your industry. Delaware is one of only five states with no general sales tax – a major advantage for product and service businesses alike. Instead, Delaware uses a Gross Receipts Tax (GRT) on business revenues, but the monthly exclusion ($100,000 for most service businesses) means most small businesses owe nothing. LLC formation costs $90 through the Division of Corporations, with a flat $300 annual franchise tax due June 1. Every business operating in Delaware also needs a state Business License from the Division of Revenue ($75/year). This guide covers every step using official Delaware state sources.

How to Start a Business in Delaware (Step by Step)

Step 1: Choose Your Business Structure

Most Delaware small business owners choose between a sole proprietorship, a Limited Liability Company (LLC), or a corporation. Delaware is globally known as a business-friendly state with a well-developed body of corporate law, making it a popular incorporation destination. An LLC is the most popular choice for small businesses because it limits personal liability and offers flexible tax treatment.

Sole Proprietorship: No state registration required if you operate under your own legal name. No personal liability protection. If you use a trade name, register a DBA with the Division of Revenue for $25 (as of February 2, 2026 – new statewide online process).
LLC: Formed through the Delaware Division of Corporations by filing a Certificate of Formation. Filing fee: $90. Annual franchise tax: $300 flat, due June 1 each year (no report required – just payment). Late penalty: $200 + 1.5%/month interest.
Corporation: Delaware corporations are subject to an 8.7% corporate income tax on net income. Delaware’s Court of Chancery and predictable corporate law make it attractive for businesses seeking outside investment or planning to go public.

File your LLC or corporation online through the Delaware Division of Corporations: corp.delaware.gov.

Step 2: Register Your Business

If you form an LLC or corporation, file with the Delaware Division of Corporations. Most registrations can be completed online.

Certificate of Formation (LLC): File online or by mail with the Division of Corporations at icis.corp.delaware.gov/ecorp. Fee: $90. Expedited processing available for additional fees (same-day filing is an option). Phone: (302) 739-3073.
Annual Franchise Tax: Delaware LLCs pay a flat $300 franchise tax annually. Due by June 1 for the prior tax year. No annual report is required – just the tax payment. Pay online at corp.delaware.gov/paytaxes. Late penalty: $200 plus 1.5% monthly interest on both the tax and the penalty.
Registered Agent: Every Delaware LLC must maintain a registered agent with a physical Delaware street address (P.O. boxes are not permitted). The agent must be available during normal business hours. An LLC member/owner may serve as registered agent if they have a physical Delaware address. Professional registered agent services typically cost $49-$300/year.
Delaware Business License: Separate from your entity registration – every person or entity conducting a trade or business in Delaware must obtain a Business License from the Division of Revenue. Annual fee: $75 (first location). Apply online at onestop.delaware.gov. A temporary license can be printed immediately; permanent license arrives within 10 business days. Renew by December 31 each year.
DBA / Trade Name: If you operate under any name other than your LLC’s legal name, register a Trade Name with the Division of Revenue. As of February 2, 2026, Delaware moved DBA registration from county Superior Courts to the Division of Revenue statewide. Fee: $25. Online only at onestop.delaware.gov. No notarization required. No expiration; no renewal required.
EIN (Federal): Apply for a free Employer Identification Number from the IRS at irs.gov. Required for multi-member LLCs, any entity with employees, and strongly recommended for any LLC opening a business bank account.

Step 3: Get Required Licenses & Permits

Delaware requires a statewide Business License for nearly every business. In addition, regulated industries require professional licenses from the Division of Professional Regulation (DPR) or other state agencies. Local (municipal) permits may also apply depending on your city or town.

Delaware Business License: Required statewide for all businesses. $75/year from the Division of Revenue. Apply at onestop.delaware.gov. This is separate from any professional or occupational license.
Regulated professions (HVAC, cosmetology, etc.): The Division of Professional Regulation (DPR) oversees dozens of licensed professions. Apply through the DELPROS portal: delpros.delaware.gov. Phone: (302) 744-4500.
Food service / food trucks: The Delaware Division of Public Health, Office of Food Protection issues Food Establishment Operating Permits for all food businesses, including mobile food units. Pre-operational inspection required. Call (302) 744-4546 before starting.
Childcare / daycare: The Office of Child Care Licensing (OCCL) within the Delaware Department of Education licenses all childcare facilities – no fee for licensing. Phone: (302) 892-5800 (New Castle County) or (302) 739-5487 (Kent and Sussex counties).
Landscaping (pesticide application): The Delaware Department of Agriculture, Pesticide Management Section certifies commercial pesticide applicators. Required if you apply pesticides on clients’ property for compensation. Phone: (302) 698-4571.
Private investigators: The Delaware State Police, Professional Licensing Section licenses all PI firms and individual investigators. Phone: (302) 739-5991.

See the industry-specific guides below for complete licensing details for each business type.

Step 4: Register for State Taxes

Delaware has no general sales tax – one of only five states in the nation. Instead, Delaware businesses pay a Gross Receipts Tax (GRT) on their total revenue. For most service businesses, the GRT rate is low and the monthly exclusion means small businesses often owe nothing. Tax registration is handled through the Delaware Division of Revenue.

Sales Tax: Delaware has no state or local general sales tax. You do not collect, remit, or file sales tax returns. This is a major advantage for retail and service businesses. More info: revenue.delaware.gov.
Gross Receipts Tax (GRT): Delaware imposes a GRT on the seller, not collected from customers at point of sale. Rate for most service businesses (cleaning, HVAC, landscaping, personal services): 0.3983%. Monthly exclusion: the first $100,000 of receipts per month is excluded for most service businesses – meaning most small businesses owe $0 in GRT. File monthly or quarterly depending on volume. Register and file at grossreceiptstax.delaware.gov. Phone: (302) 577-8780.
State Income Tax: Delaware has a graduated individual income tax with rates from 0% to 6.6% (top rate on income over $60,000). LLCs are pass-through entities by default – members report business income on their Delaware personal returns. Corporate income tax: 8.7% flat on net income. Register through the Division of Revenue at revenue.delaware.gov.
Employer Withholding: If you have Delaware employees, register to withhold Delaware income tax from wages. Register through the Division of Revenue. File withholding returns quarterly.
Unemployment Insurance: Register with the Delaware Department of Labor, Division of Unemployment Insurance when you hire your first employee. Online registration: ui.delawareworks.com. Phone: (302) 761-8484.
New Hire Reporting: Delaware employers must report new hires within 20 days of the start date. Report online at newhire-reporting.com/DE-Newhire or call (302) 739-3397.

Step 5: Get Business Insurance

Delaware requires workers’ compensation coverage for any employer with one or more employees – including part-time and seasonal workers. Sole proprietors and partners with no employees are exempt but may voluntarily opt in. LLC executive officers (up to 4) may elect to be excluded from coverage.

Purchase coverage from any licensed private insurance carrier. Delaware does not have a state workers’ comp fund. Failure to carry required coverage is a Class A misdemeanor. More information: Delaware Office of Workers’ Compensation, Department of Labor at industrialaffairs.delaware.gov/workers-compensation.

Beyond workers’ comp, general liability insurance ($1 million per occurrence is standard for most service businesses) is strongly recommended. Industry-specific requirements apply: HVAC contractors typically need $300,000-$1,000,000 liability coverage for permits; PI agencies must carry $1,000,000 commercial general liability; pesticide applicator businesses need minimum $300,000 bodily injury per occurrence.

Delaware Business Guides by Industry

Choose your industry for a detailed breakdown of every license, permit, and requirement:

Delaware Business Resources & Official Links

Frequently Asked Questions

How much does it cost to form an LLC in Delaware?

The filing fee for a Delaware LLC (Certificate of Formation) is $90 through the Division of Corporations at corp.delaware.gov. After formation, Delaware LLCs pay a flat $300 franchise tax annually by June 1 – no annual report required, just payment. You also need a Delaware Business License from the Division of Revenue ($75/year). Add registered agent costs of $49-$300/year if using a commercial service. Total first-year cost: typically $465-$765 depending on registered agent choice.

Does Delaware have a state sales tax?

No. Delaware is one of only five U.S. states with no general state or local sales tax. You do not collect, remit, or file sales tax returns for general business sales. Instead, Delaware uses a Gross Receipts Tax (GRT) on the seller’s revenue – but the monthly exclusion ($100,000 for most service businesses) means the vast majority of small businesses owe nothing in GRT. This is a major advantage for Delaware businesses.

Does Delaware require a general state business license?

Yes. Unlike many states, Delaware requires a Business License from the Division of Revenue for all businesses operating in the state. The annual fee is $75 (first location). Apply online at onestop.delaware.gov. This is separate from any professional or occupational license required for your industry. Renew annually by December 31.

Does Delaware require workers’ compensation insurance?

Yes, for any employer with one or more employees, including part-time and seasonal workers. Sole proprietors and partners with no employees are exempt but may opt in voluntarily. LLC executive officers (up to 4) may elect to be excluded from coverage. Coverage must be purchased from a licensed private insurance carrier – Delaware has no state workers’ comp fund. Operating without required coverage is a Class A misdemeanor. Contact the Delaware Office of Workers’ Compensation at industrialaffairs.delaware.gov/workers-compensation.

What is Delaware’s Gross Receipts Tax and who pays it?

Delaware’s Gross Receipts Tax (GRT) is a tax on total business revenues, paid by the business – not collected from customers. It replaces the sales tax model. Rates range from 0.0945% to 1.9914% depending on business type. Most service businesses (cleaning, HVAC, landscaping, personal services) pay 0.3983%. The monthly exclusion – the first $100,000 of receipts per month is excluded for most service businesses – means the majority of small businesses owe $0 in GRT. Register and file at grossreceiptstax.delaware.gov.

How do I register a DBA in Delaware?

As of February 2, 2026, Delaware modernized its DBA process. Trade name (DBA) registrations are now handled statewide by the Division of Revenue (previously done at county Superior Courts). Fee: $25. Apply online only at onestop.delaware.gov. No notarization is required. Registrations do not expire and do not require renewal. You must have an active Delaware Business License to register a trade name.

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About the Author

Robert Smith has run a licensed private investigation firm for 8 years from the Florida-Georgia state line - where he learned firsthand how wildly business licensing rules differ between states just miles apart. He personally researched requirements across all 50 states and D.C., reviewing hundreds of government sources over hundreds of hours to build guides he wished existed when he started. Not a lawyer or accountant - just a business owner who has done the research so you don't have to.

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