Delaware Business License
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The state of Delaware requires that all businesses get business licenses to operate legally. There are two types: general and occupational. In addition, there may be other licenses and permits you have to obtain, depending on what you specialize in.
Of course, this makes every situation unique, and this guide can only cover business licenses in a broad sense. This page will give you a general direction you can go in.
How to Get a Delaware Business License
The place to go is the Department of Revenue if you want a Delaware business license, but there are several licensing and regulatory agencies to choose from. It’s best if you speak to the Department of Revenue to determine the specific route you need to take.
Whichever one it is, the business license application typically asks you for the following:
- LLC name
- Business address
- Contact information
- Employer identification number (EIN)
Do note that you may have to get licenses on both the local and state level, as well as the federal level (more on this later).
As we’ve said before, there are two types of business licenses, so let’s explore those.
Delaware General Business License
As the name suggests, the Delaware general business license is one used in a broad sense, which means that every business in the state has to get one. In fact, this must be in order before you start operating.
You can apply for a Delaware general business license online or by mail. To do it online, use the registration and licensing portal called Delaware One Stop.
Of course, online submissions are faster, but you can use Form CRA (Combined Registration Application) if you’d rather do it by paper.
Once you receive your Delaware general business license, it’s good for one year and costs $75. But after this initial license expires, you can apply for three-year ones, which cost $225. Just be aware that renewal applications must be done before December 31st.
Delaware Occupational Business License
In addition to a general business license, some business owners may also have to get a Delaware occupational business license. To see if that applies to you, check out Business First Steps.
The expiration date on your Delaware occupational business license will depend on the industry you’re in, and the same goes for the cost of the license (it can be anywhere between $50 to $500).
Local Business License in Delaware
We mentioned earlier that it’s likely that you have to get local business licenses in Delaware too. Like with state business licenses, there are two types: general and industry-specific.
We can’t list every single city/town’s requirements, so it’s best for you to contact the local authorities to see what you need to do to get proper licensing.
Federal Business License in Delaware
In most cases, you won’t have to get a federal business license if you’re operating in Delaware. However, there are some industries where this applies, such as:
- Wildlife imports and exports
- Fish
- Alcohol
- Firearms and ammunitions
- Sea cargo
This isn’t a comprehensive list; for all industries, check this US Small Business Administration page.
Delaware Business License FAQs
Getting a Delaware business license can be a little confusing. If you have more questions, we just might answer it below.
Can I get my general and occupational business licenses at the same time?
Yes, you can. The state of Delaware condenses the licensing process and allows applicants to get multiple in one go.
Do I need a separate license for multiple locations?
Yes, you do. If your business operates in multiple locations in Delaware, you need a separate business license for each location.
Do home-based businesses need a Delaware business license?
Yes. Home-based businesses in Delaware must obtain a business license just like any other business.
Does forming an LLC in Delaware automatically give me a business license?
No, forming an LLC in Delaware only registers your business entity. You still need to apply for a Delaware business license separately.
How do I renew my Delaware business license?
You can renew your business license online through the Delaware Division of Revenue website. Or you can do it by mail before the expiration date.
What happens if I operate without a Delaware business license?
Operating without a required business license can result in penalties, fines, and possible legal action from the state. So we don't recommend this course of action.
Step-by-Step Guide to
Forming a Delaware LLC
Delaware LLC Starter Guide
A step-by-step guide to forming an LLC in Delaware, covering all legal and operational requirements.
1. Delaware Name Search
Learn how to check the availability of your desired LLC name and ensure compliance with Delaware naming rules.
3. Delaware Certificate of Formation
Find out how to file the Certificate of Formation, the official document that establishes your LLC.
4. Delaware Operating Agreement
Discover why an Operating Agreement is crucial for defining the structure and management of your LLC.
