Form your company in Delaware

Why form an LLC in Delaware?

Delaware is the right call if you're building a venture-backed startup that will raise from US investors — they expect a Delaware entity (usually a C-Corp). For a simple non-US-owned LLC that isn't raising capital, Delaware's $300/yr tax is higher than Wyoming or New Mexico with little added benefit.

A quick reminder from us: forming in a state where you do not actually operate usually means you still have to register (foreign-qualify) in your home state, often with little or no tax benefit. If you are unsure, tell us how you plan to operate and we will recommend the right fit — free.

Costs and fees

The Delaware Secretary of State charges roughly $110 to file Articles of Organization, with an ongoing state cost of about $300/yr flat franchise tax (due June 1); no annual report for LLCs. Flat $300/yr LLC franchise tax; no state sales tax; no DE income tax on an LLC with no Delaware operations, though DE residents/owners with DE-source income are taxed. State fees are paid directly to the state and are separate from our service fee.

• Filing fee: $110 (approximate)
• Ongoing state cost: $300/yr flat franchise tax (due June 1); no annual report for LLCs
• Typical processing time: ~1–2 wks standard; expedited (24hr/same-day) available for a fee

Taxes and privacy

Personal state income tax in Delaware: Yes (no sales tax). Owner privacy on the public record is generally rated high.

Your federal tax obligations (and your EIN) are the same regardless of the state you choose — a single-member LLC is taxed as a pass-through by default, and we can obtain your EIN even if you do not have an SSN.

Pros of forming in Delaware

• Members and managers are NOT listed on the public Certificate of Formation — strong owner privacy
• The entity structure US venture investors expect; the default for fundraising and cap tables
• No annual report required for LLCs — just the flat franchise tax
• No state sales tax, and no state income tax on an LLC that does not operate in Delaware
• Court of Chancery: the most developed, predictable business-law system in the US

Things to weigh

• $300/yr flat franchise tax is higher than Wyoming (~$60) or New Mexico ($0 annual)
• Standard processing is slow (1–2 weeks) unless you pay to expedite
• Overkill and extra cost for a simple, non-raising LLC — you're paying for benefits you may never use
• $200 penalty plus interest if the June 1 franchise tax is missed
• A registered agent in Delaware is mandatory (typical $50–$150/yr on top of state fees)

Banking for your Delaware LLC

Banking isn't restricted by forming in Delaware — a DE LLC opens US accounts with Mercury, Wise, Relay and similar. Delaware's privacy on the public record doesn't exempt you from bank KYC: you'll still disclose beneficial owners when the account is opened, the same as in any state.

Whichever state you choose, we prepare the documents banks ask for and can obtain your EIN even without an SSN. Bank and provider approval is always their decision — we are not affiliated with any bank.

Is Delaware right for you?

Best for: VC-track startups planning to raise. If you operate physically in Delaware, forming here keeps things simple. If you are a remote or non-US founder without a specific reason to choose Delaware, a low-cost, privacy-friendly state like Wyoming or New Mexico is often the better default.

Not sure? Start your application and we will confirm the best state for your situation before anything is filed.