The Complete Guide to Delaware Business Licenses
Delaware does require a state business license. It is issued by the Delaware Division of Revenue — not by the Division of Corporations, which only forms your LLC. Delaware has no sales tax, but licensed businesses pay a gross receipts tax. This guide explains each step for a new Delaware LLC.
Step 1: Form the LLC and know the yearly tax
A Delaware LLC is formed by filing a Certificate of Formation with the Division of Corporations for $110. Every Delaware entity must keep a registered agent with a physical address in the state.
- Annual LLC tax: a flat $400 a year, due by 1 June. Delaware LLCs do not file an annual report.
- Late payment: a $200 penalty plus 1.5% interest a month.
See our Delaware LLC guide for every formation step.
Step 2: Delaware state business license
The Division of Revenue says that anyone conducting a trade or business in Delaware needs a Delaware business license — and that this includes entities located in Delaware that conduct their business outside the state. If your only link to Delaware is your registered agent, confirm with the Division of Revenue whether a license is needed for your situation.
- Fee: generally $75 a year for the first location; the exact fee depends on the business activity, and extra locations cost more. A separate license is required for each separate business activity.
- Term: licenses expire on 31 December each year, and most are prorated in the first year. After the first year you can buy a 3-year license — it is not discounted, you pay three times the yearly fee.
- How to apply: register on Delaware One Stop after forming your LLC and getting your EIN. A temporary license is issued immediately and the permanent one in about 10 business days.
Step 3: Gross receipts tax
Delaware has no state or local sales tax. Instead, licensed businesses pay a gross receipts tax on what they sell. Rates range from 0.0945% to 1.9914% depending on the activity, with no deduction for cost of goods or labor. Each category has a monthly exclusion — generally starting at $100,000 a month and up to $1.25 million — so many small businesses owe little or nothing. All new businesses start as quarterly filers.
Step 4: City licenses (Wilmington and Dover)
Your city or county may require its own license in addition to the state one:
- Wilmington requires a city business license, and the application must include a copy of your current Delaware state license. Wilmington also has a city wage tax and a head tax of $15 a month for every employee above five.
- Dover requires a city license if you work within city limits.
Step 5: Professional and contractor licenses
The Division of Professional Regulation runs 37 boards and commissions covering 55 professions, trades and events — including nursing, electricians, land surveyors and mental health professionals. Contractors need the state business license and pay gross receipts tax. Non-resident contractors must also post a bond with the Division of Revenue equal to 6% of every contract over $20,000.
Hiring staff
You must register for unemployment insurance with the Delaware Department of Labor once you pay $1,500 or more in wages in a calendar quarter, or employ at least one person in each of 20 weeks in a year. Employers must also carry workers' compensation insurance.
Trade names: the new statewide registry
From 2 February 2026, trade names (DBAs) are no longer filed with the county Prothonotary. The Division of Revenue now runs a statewide registry on Delaware One Stop. The fee is $25 per trade name, one time, and the business must already hold a Delaware business license. Names recorded with the Superior Court before the change need no new action.
Checklist and costs
- Form your Delaware LLC — $110 (details).
- Get your EIN — free from the IRS.
- Get your Delaware business license on One Stop — generally $75 a year.
- File gross receipts tax returns (quarterly at first).
- Get a city license if you work in Wilmington, Dover or another city that requires one.
- Obtain any professional or contractor license your work requires.
- Pay the $400 annual LLC tax by 1 June every year.
Not sure which licenses apply to you? Our business license research service identifies every federal, state, county and city requirement for your Delaware LLC, with forms and fees. Or start with the company: form your Delaware LLC now.
General information, not legal or tax advice. Fees, rates and rules are set by each agency and city and change over time — confirm with the issuing office before you apply. Checked October 2026.
Frequently Asked Questions
Does Delaware require a business license?
Yes. Anyone conducting business in Delaware needs a state business license from the Division of Revenue, including entities located in Delaware that do business outside the state. Some cities, such as Wilmington, require their own license too.
How much is a Delaware business license?
Generally $75 a year for the first location, although the fee depends on the business activity. Licenses expire on 31 December, and after the first year you can buy a 3-year license at three times the yearly fee.
Does Delaware have sales tax?
No. Delaware has no sales tax. Instead, businesses pay a gross receipts tax of 0.0945% to 1.9914% depending on the activity, after a monthly exclusion that generally starts at $100,000.
What is the Delaware LLC annual tax?
Every Delaware LLC pays a flat $400 annual tax by 1 June. Paying late adds a $200 penalty plus 1.5% interest a month. Delaware LLCs do not file an annual report.
How do I register a trade name in Delaware?
Since 2 February 2026, trade names are registered with the Division of Revenue on Delaware One Stop for a one-time $25 per name. You must hold a Delaware business license first.