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Delaware requires a state business license for nearly every business. It costs $75 per year for a first location at the general rate, comes from the Division of Revenue (not the famous Division of Corporations), and you apply through the state’s One Stop portal. Each distinct business activity needs its own license.
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Want this done today?
Bizee files your Delaware LLC with the Delaware Division of Corporations and walks you through every step — most people finish the application in one sitting. You choose the package that fits and pay your state’s filing fee.
Prefer DIY? You can file directly with the Division of Corporations — the state fee is identical either way.
Delaware is the state everyone associates with easy incorporation, so the universal license surprises people. The reason is structural: Delaware has no sales tax. The state taxes businesses directly instead — through this license and its companion gross receipts tax — so the license is how your business enters that system. Forming the LLC does not create it; they are two different agencies.
What Delaware Actually Requires
- State business license ($75/year) — from the Division of Revenue, per business activity, via Delaware One Stop. Operating without it is the compliance gap most new Delaware businesses don’t know they have.
- Entity formation ($110 LLC) — Certificate of Formation with the Division of Corporations, plus the $300 annual franchise tax every Delaware LLC pays.
- Gross receipts tax registration — created with your license; rates vary by activity. No sales tax means no seller’s permit — this replaces it.
- Professional licensing through DELPROS — regulated professions (cosmetology, HVAC, contracting, and dozens more) license separately through the Division of Professional Regulation.
- Local licenses — Wilmington, Newark, and Dover each require city business licenses on top of the state license.
What It Costs
| Item | Cost | Renewal |
|---|---|---|
| State business license (first location, general rate) | $75/year | Annual; 3-year option at 3× the annual rate |
| Senior discount (65+) | 75% off the annual fee | — |
| Delaware LLC (Certificate of Formation) | $110 | $300 franchise tax, due June 1 yearly |
| City license (Wilmington / Newark / Dover) | Varies by city and activity | Usually annual |
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Want the LLC step handled for you?
Everything in this table starts with your business entity. Bizee files your Delaware LLC with the state and walks you through each step — you choose the package that fits and pay your state’s filing fee. Or use the do-it-yourself walkthrough below; the state fee is identical either way.
How to Get Licensed, In Order
- Form the entity first. The business license is issued to a legal entity, so the Certificate of Formation comes before the license application.
- Apply through One Stop. One application registers you with the Division of Revenue for the business license and gross receipts tax, and handles new-hire reporting setup.
- Add DELPROS licensing if your profession is regulated by the Division of Professional Regulation.
- Get the city license if you operate in Wilmington, Newark, Dover, or another municipality that licenses businesses.
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Two agencies, one order of operations
Delaware’s license (Division of Revenue) attaches to the entity you form (Division of Corporations) — so formation is step one. Bizee files the Certificate of Formation and tracks the June 1 franchise tax deadline that every Delaware LLC owes from year one.
Package + Delaware state fee ·
Delaware Licenses by Industry
- Food trucks in Delaware — health permits stacked on the state license
- Salons in Delaware — DELPROS cosmetology licensing
- HVAC in Delaware — DPR trade licensing plus the business license
- Cleaning services in Delaware — the simplest stack: license + gross receipts
Full detail — franchise tax, PFML, hiring rules — in our guide to starting a business in Delaware.
Frequently Asked Questions
Does Delaware require a business license?
Yes — nearly universally. $75/year for a first location at the general rate, from the Division of Revenue via One Stop, one license per business activity.
Why does Delaware license every business when most states don’t?
No sales tax. The license and the gross receipts tax are how Delaware taxes business activity, so registration into that system is mandatory.
How much is a Delaware business license?
Generally $75 per year for the first location. Three-year licenses cost exactly three times the annual rate, and seniors 65+ get 75% off.
Sources
| Source | What It Covers |
|---|---|
| Delaware Division of Revenue — Requirements | License requirement, $75 rate, per-activity rule, 3-year option, senior discount |
| Delaware One Stop | License application portal |
| Delaware Division of Corporations | Entity formation and franchise tax |
Running a daycare? Delaware has its own daycare insurance requirements, with current coverage rules and costs.
Running a cleaning business? Delaware has its own cleaning business insurance requirements, with current coverage rules and costs.
