Do I have to live in Delaware to form a Delaware LLC?

No. There is no residency requirement for members or managers. Only the registered agent must maintain a Delaware office.

Is an operating agreement required in Delaware?

It is not filed with the state, but it is where ownership, voting and profit allocation are set out, and Delaware law gives it broad power to override default statutory rules.

Does forming a Delaware LLC avoid tax in my home state?

No, if you actually live and do business in another state. You will typically owe that state's taxes and also need to register the LLC there as a foreign entity.

Why do venture-backed startups favour Delaware?

Mainly the Court of Chancery, a specialised business court with an extensive body of case law, and LLC and corporate statutes that investors and their lawyers already know well.

Does Delaware require an LLC annual report like most states?

No. LLCs, LPs and GPs pay the flat annual tax instead of filing a report. Corporations are treated differently and do file an annual report.

Is the $400 tax based on income or LLC size?

No. It is a flat amount for every Delaware LLC, regardless of income, assets or activity during the year.

Delaware state guide - 6 lessons

How to start an LLC in Delaware

Delaware is the default choice for venture-backed startups and holding companies, not for the average small business trading from one storefront. The Certificate of Formation costs $110, there is no public annual report and no requirement to name members or managers, but every Delaware LLC owes a flat $400 franchise tax by June 1 regardless of income or activity. This guide walks through naming, the registered agent, filing the certificate, taxes and the yearly obligations, with the official Division of Corporations page behind every figure.

Delaware LLC facts at a glance

Delaware LLC facts at a glance
Official filing agency	Delaware Division of Corporations
Formation document	Certificate of Formation
State filing fee	$110
Filing methods	Mail, fax or courier to the Division of Corporations in Dover, Through a registered agent or authorised filing service
Typical processing (recent)	3-5 business days
Typical expedited processing	24 hours for an extra $100
Registered agent	Required under 6 Del. C. s. 18-104. Must have a business office in Delaware that is generally open to accept service of process.
Franchise Tax	$400, due June 1
Late penalty	$200 + 1.5% monthly interest
State-level business tax	Flat $400 annual LLC franchise tax regardless of income or activity.
Publication requirement	None
Certificate of Formation fee	$110, paid to the Division of Corporations
No members or managers filed	Delaware's Certificate of Formation does not require member or manager names, which is why the state is popular for privacy-conscious owners.
Annual franchise tax	A flat $400 per year for every Delaware LLC, due by June 1, regardless of income, revenue or activity. There is no separate annual report requirement for LLCs, LPs or GPs.

Processing times reflect recent official guidance and change often. Check the Delaware Division of Corporations current processing calendar before you rely on a date.

File it yourself

Delaware accepts filings directly from business owners. You do not need us, or any other company, to form your LLC. Here is the official portal.

the Delaware Division of Corporations online filing and document service

The Delaware lessons

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Official sources

Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team, Corporate formation specialists and registered agents