Delaware. The state for investors.

Delaware is famous for its corporate law: dedicated courts for corporate disputes, a long-established body of case law, investors who know it. For a corporation with plans to bring in investors, that counts in its favour — for a small LLC it often does not, because the annual tax has just gone up.

In brief

Forming an LLC in Delaware costs $110. Every year, an annual tax of $400 is due on 1 June — from tax year 2026; before that it was $300. A registered agent with an office in Delaware is mandatory. Delaware is suited above all to corporations that want to take on investors.

Delaware in figures

From tax year 2026 (first due on 1 June 2027); until tax year 2025 the tax was $300. As of September 2026; sources at the end of the page.

  • Forming an LLC · Delaware: $110 (Certificate of Formation)
  • Annual LLC tax · Delaware: $400, due 1 June of the following year
  • Late payment · Delaware: if late, $200 plus 1.5% per month
  • Registered agent · Delaware: required, with an office in Delaware
  • Corporation · Delaware: annual report $50 and franchise tax of at least $175 (authorised shares method) or $400 (assumed par value capital method), due on 1 March

When Delaware is the right fit — and when it is not

  • Good fit — Corporation with investors: US investors, employee equity programmes, a later sale: this is where Delaware is the standard everyone knows.
  • Rarely a fit — Small LLC without investors: For an LLC that handles orders or builds up a card history, the annual tax of $400 is a cost that brings nothing in return.

Florida, Delaware and Wyoming compared

The three states for an LLC side by side. As of September 2026, amounts for LLCs. Delaware: From tax year 2026 (first due on 1 June 2027); until tax year 2025 the tax was $300.

  • Formation · Florida: $125 · Delaware: $110 · Wyoming: $100
  • Paid to the state each year · Florida: $138.75 · Delaware: $400 · Wyoming: at least $60
  • Deadline · Florida: 1 January to 1 May · Delaware: 1 June · Wyoming: Month of formation
  • State tax · Florida: 5.5% for corporations · Delaware: depends on the activity · Wyoming: no corporate or personal income tax
  • Strength · Florida: Team on the ground in Miami, business in Florida · Delaware: Corporate law, investors · Wyoming: Lean, low running costs

What you need to know

  • The annual LLC tax is due even if the company is dormant. If it is paid late, $200 plus 1.5% per month is added.
  • A Delaware company that does business in another state generally has to register there as well — with separate fees.
  • A US company that is managed from Germany, Austria or Switzerland remains taxable there; its formation must be reported to the tax office (in Germany under section 138 of the German Fiscal Code, AO).

The right package

For corporations with plans to bring in investors: formation, EIN and coordination with a lawyer and a tax adviser.

Frequently asked questions

How much does a Delaware LLC cost?

Formation costs $110, and the annual tax is $400 — from tax year 2026, due on 1 June of the following year. Before that it was $300.

Why do so many companies incorporate in Delaware?

Because of its corporate law: dedicated courts for corporate disputes, a long-established body of case law and investors who know it. This matters above all for corporations with investors.

Does Delaware make sense for a small LLC?

Rarely. For an LLC without plans to bring in investors, the annual tax is a cost that brings nothing in return; Florida or Wyoming are often a better fit.

Does a Delaware company have to register in other states?

If it does business in another state, generally yes — with separate fees there.