Delaware is a popular choice for incorporating businesses due to its business-friendly laws and legal framework. However, understanding the full range of costs involved is crucial. Here’s a quick summary:
- Initial Filing Fees: $110 for LLCs and $109+ for corporations.
- Annual Franchise Tax: $300 for LLCs; $175–$200,000 for corporations, depending on share structure.
- Registered Agent Fees: $50–$300 per year (required for all businesses).
- Annual Report: $50–$125 for corporations; not required for LLCs.
- Other Costs: Business licenses ($50–$500 annually), expedited processing fees ($50–$1,000), and optional services like certified copies or certificates of good standing ($50 each).
Services like BusinessAnywhere streamline the process with bundled offerings, including free first-year registered agent service, EIN application ($97), and compliance tools. While direct filing might save on upfront costs, platforms like BusinessAnywhere provide added convenience and help avoid late fees or compliance issues.
| Cost Type | LLC | Corporation |
|---|---|---|
| Initial Filing Fee | $110 | $109+ |
| Annual Franchise Tax | $300 | $175–$200,000 |
| Registered Agent | $50–$300/year | $50–$300/year |
| Annual Report | Not required | $50–$125 |
| Business License | $50–$500/year | $50–$500/year |
Whether you manage incorporation yourself or use a service, understanding these costs ensures you’re prepared for both the upfront and recurring expenses of running a Delaware business.
1. Delaware State Filing Costs
When setting up a business in Delaware, you’ll encounter two main types of fees: one-time filing fees and recurring annual costs.
Initial Costs
To officially establish a Delaware LLC, you’ll need to pay a one-time state filing fee of $110 for the Certificate of Formation. This fee is required to legally register your business.
For corporations, the filing fee starts at $109 for up to 1,500 shares of no par value stock. If you authorize additional shares or use par value stock, the fees will increase. Delaware also offers expedited processing options for those in a hurry. While standard processing takes about 3–5 business days, you can speed things up by paying an extra fee ranging from $50 to $1,000. For example, 24-hour processing is available for approximately $100.
Ongoing Costs
Recurring expenses in Delaware primarily revolve around the annual franchise tax, which varies depending on your business structure:
- LLCs: A flat fee of $300 per year, due by June 1.
- Corporations: The franchise tax is calculated based on the number of authorized shares and corporate structure, with annual costs ranging from $175 to $200,000. Late payments incur a $200 penalty plus 1.5% monthly interest.
Corporations also need to file an annual report, which costs $50 for domestic corporations and $125 for international ones. LLCs are not required to file this report.
Additionally, all Delaware businesses must maintain a registered agent with a physical address in the state. This service typically costs between $50 and $300 annually, with many providers charging around $109 per year after any introductory discounts.
Another recurring expense to consider is the cost of local business licenses, which vary by municipality and range from $50 to $500 annually.
Here’s a quick breakdown of key fees:
| Fee Type | LLCs | Corporations | Frequency |
|---|---|---|---|
| Initial Filing Fee | $110 | $109+ | One-time |
| Annual Franchise Tax | $300 | $175–$200,000 | Annual |
| Annual Report | Not required | $50–$125 | Annual |
| Registered Agent | $50–$300 | $50–$300 | Annual |
| Business License | $50–$500 | $50–$500 | Annual |
Additional Costs
Delaware also charges for optional services. For example:
- Reserving an LLC name costs $75 for a 120-day hold.
- Certified copies of records are $50 each.
- A certificate of good standing costs $50.
- Filing a fictitious name statement (DBA) typically costs $25 per county.
One expense that often slips under the radar is Delaware’s gross receipts tax, which ranges from 0.0995% to 1.92% of your revenue depending on your business type. Proper budgeting for these costs is essential to keep your business compliant and avoid penalties that could disrupt operations.
These specific state fees provide a foundation for comparing Delaware’s costs to those of other states in the sections to come.
2. BusinessAnywhere Delaware Incorporation Services
BusinessAnywhere stands out in the Delaware incorporation market with its transparent, pay-as-you-go pricing and no hidden fees. Designed for entrepreneurs and remote business owners, the platform offers a seamless online experience for forming and managing a business.
Initial Costs
Starting your Delaware LLC with BusinessAnywhere is budget-friendly. The base package costs $0 plus the mandatory $110 state fee, covering only the state filing fee. Additional services include:
- Free registered agent service for the first year
- EIN application service for $97, essential for opening a bank account and handling taxes
- Corporate document preparation, such as Articles of Organization and Operating Agreement
- Beneficial Ownership Information Report (BOIR) filing for $37, ensuring compliance with FinCEN regulations
For those seeking a more comprehensive solution, the Digital Nomad Kit is available. Priced at about $3,070 for U.S. citizens and $3,200 for non-U.S. individuals, this package includes LLC registration, EIN, registered agent service, virtual mailbox, tax guidance, compliance tools, and banking setup assistance.
Once your business is up and running, BusinessAnywhere offers competitively priced ongoing services.
Ongoing Costs
BusinessAnywhere’s registered agent service costs $147 per year after the first year. This fee includes compliance support, making it a solid choice for maintaining good standing with the state.
For managing mail, their virtual mailbox services start at $20 per month, featuring unlimited scanning for easy document access. Higher-tier plans, priced up to $65 per month, accommodate up to 20 recipients and offer global forwarding options – ideal for remote business owners.
Compliance Support
Compliance is made simpler with BusinessAnywhere’s 24/7 online dashboard, which tracks filings and sends reminders. This tool helps avoid costly errors, such as missing Delaware’s June 1st franchise tax deadline, which incurs a $200 penalty plus 1.5% monthly interest. The platform also assists with annual reports, necessary filings, and updates to keep your business in good standing.
Additional services include S-Corp tax election filing for $147 and ongoing support for franchise tax payments. These features help entrepreneurs sidestep penalties, saving both time and money.
Convenience
What sets BusinessAnywhere apart is its all-in-one dashboard, which streamlines business formation, compliance, and ongoing services. Entrepreneurs can handle the entire Delaware incorporation process online – no need to travel to Delaware or deal with physical paperwork.
The virtual mailbox service is particularly valuable for digital nomads and remote business owners. It ensures timely receipt of legal documents and state notices, which is critical since Delaware requires a registered agent with a physical address in the state.
For added convenience, BusinessAnywhere offers remote online notary services at $37 per notarization, allowing legal documents to be executed without in-person meetings. Combined with bank account setup assistance and other business services, the platform eliminates the hassle of juggling multiple providers while maintaining cost efficiency and ease of use.
| Service | BusinessAnywhere Cost | Market Range | Notes |
|---|---|---|---|
| Delaware LLC Formation | $0 + $110 state fee | $110–$500+ | Includes free first-year registered agent |
| Registered Agent (Annual) | $147 after first year | $50–$300 | Includes compliance support |
| EIN Application | $97 | $50–$200 | Professional filing service |
| Virtual Mailbox | $20–$65/month | $15–$100/month | Unlimited scanning included |
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Cost Comparison
When weighing the costs of filing directly in Delaware against using BusinessAnywhere, it’s clear that a lower upfront fee can sometimes lead to higher overall expenses due to unbundled services. Let’s break down how each option impacts your total costs.
Filing an LLC directly with Delaware costs $110. However, additional services like a registered agent (ranging from $50 to $300 annually), EIN processing, compliance tracking, and document management can significantly increase your expenses. Many business owners find that assembling these services from various providers ends up costing much more than anticipated.
On the other hand, BusinessAnywhere simplifies this process by bundling essential services. Their package includes LLC formation with a free first-year registered agent, a $97 EIN application, and virtual mailbox options. These bundled services not only offer better long-term value but also help avoid compliance issues, such as Delaware’s $200 late fee and 1.5% monthly interest penalties.
The real difference lies in ongoing costs and the reduced risk of compliance errors. BusinessAnywhere’s compliance reminders, for instance, can prevent expensive mistakes that might quickly outweigh any initial savings from direct filing.
Here’s a side-by-side look at first-year expenses for both options:
| Cost Category | Direct Delaware Filing | BusinessAnywhere Service |
|---|---|---|
| State Filing Fee (LLC) | $110 | $0 + $110 state fee |
| Registered Agent | $50-$300/year | Free first year, then $147/year |
| EIN Application | Free (DIY) or $50-$150 | $97 |
| Annual Franchise Tax | $300 | $300 (with reminders) |
| Virtual Mailbox | $108-$300/year (if needed) | $240-$780/year |
| Compliance Support | None | Included |
| Late Fee Risk | $200+ if missed | Minimal with reminders |
| Estimated First Year Total | $568-$1,160+ | $747-$1,327 |
This comparison highlights that BusinessAnywhere’s bundled approach often delivers better value, especially for entrepreneurs who require multiple services. While direct filing might suit seasoned business owners with straightforward needs, the added support and compliance safeguards from BusinessAnywhere typically justify the slightly higher cost.
For remote business owners, digital nomads, and international entrepreneurs, BusinessAnywhere offers the convenience of managing everything remotely through an online dashboard. This not only reduces the need for hands-on involvement but also minimizes the risk of costly compliance errors. When considering both upfront and recurring expenses, the bundled service often proves to be the more cost-effective choice.
Summary
Incorporating in Delaware comes with several costs to consider. These include a $110 filing fee for LLCs, a $300 annual franchise tax, registered agent fees ranging from $50 to $300, business license fees that can vary between $50 and $500, expedited processing charges, and other compliance-related expenses.
When deciding how to proceed, it really boils down to whether you prefer to handle the details yourself or opt for an all-in-one service. Filing directly with Delaware’s Division of Corporations might save you some money upfront, but it comes with the responsibility of managing paperwork, meeting compliance deadlines, and handling ongoing requirements on your own. This route is often better suited for seasoned business owners who have the time and expertise to navigate the process.
For remote entrepreneurs, digital nomads, or international founders, using a service like BusinessAnywhere can simplify things significantly. Their platform not only streamlines the incorporation process but also helps you manage your U.S. business over time. By consolidating services, BusinessAnywhere reduces the hassle of coordinating with multiple providers and minimizes the risk of compliance issues. This convenience is especially useful for those who want to avoid penalties or missed deadlines.
Beyond the initial costs, ongoing expenses are equally important. BusinessAnywhere addresses these concerns with features like compliance reminders, a user-friendly dashboard, and additional services such as a virtual mailbox, EIN processing, and banking support.
FAQs
What are the benefits of incorporating a business in Delaware?
Delaware has long been a top choice for business incorporation, thanks to its business-friendly laws and streamlined legal system. At the heart of this appeal is the state’s renowned Court of Chancery, which focuses exclusively on corporate law, allowing for quicker and more specialized resolution of business disputes.
The state also stands out for its tax benefits. Businesses that operate outside Delaware are exempt from state corporate income tax, and there’s no sales tax to worry about. On top of that, the incorporation process is simple, featuring low initial filing fees and flexible rules for structuring your company.
For entrepreneurs and remote business owners, services like BusinessAnywhere make the process even easier. These platforms provide tools and resources to help you manage your business seamlessly, no matter where you’re based.
How does BusinessAnywhere help businesses avoid compliance issues and penalties?
BusinessAnywhere makes managing compliance easier by providing tools and services to help you keep track of critical deadlines like annual report filings and tax submissions. With features like automated reminders and access to expert support, it ensures you stay on schedule and steer clear of expensive penalties.
The platform also offers registered agent services and compliance support, ensuring your business stays aligned with legal requirements. This means less stress for you and more time to dedicate to growing your business.
What should I consider when deciding between filing for Delaware incorporation yourself or using a service like BusinessAnywhere?
When deciding whether to handle Delaware incorporation on your own or to use a service like BusinessAnywhere, it’s important to weigh factors like time, convenience, and expertise. Filing directly means you’ll need to navigate state requirements, fill out paperwork correctly, and keep track of deadlines. This process can be both time-consuming and tricky, especially if you’re unfamiliar with the steps involved.
On the other hand, a service like BusinessAnywhere offers an all-in-one solution that takes care of everything for you. They handle registration, provide a registered agent, and even include features like a virtual mailbox – all accessible through a user-friendly online platform. This can be a game-changer for entrepreneurs, digital nomads, and remote business owners who want a hassle-free, remote-friendly way to manage their business setup and stay compliant.
