How Much Is the Cost to Set Up a Delaware LLC?

Are you considering starting a business in Delaware? If so, one of the first decisions you’ll need to make is what type of legal structure your business will have. For many entrepreneurs, forming a limited liability company (LLC) is an attractive option due to its flexibility and simplicity.

However, before you dive headfirst into setting up your LLC, it’s important to understand the costs involved. The cost to set up an LLC in Delaware can vary depending on a few different factors. These factors include things like whether you hire an attorney or use an online formation service, as well as any additional fees required by the state.

In this article, we’ll break down the various costs associated with forming a Delaware LLC so you can make an informed decision about how best to proceed with your business venture.

Understanding The Benefits Of Forming A Delaware LLC

If you’re considering starting a business, forming a Delaware LLC could be the right choice for you.

One reason why people choose to set up an LLC is because it provides a level of personal liability protection. For Delaware residents or businesses, setting up their entity as an LLC delaware might be a wise decision due to the state’s favorable laws and tax benefits.

When choosing to form an LLC, many people opt for the added benefits and protections of registering in Delaware, as it’s known for having more business-friendly laws and tax policies than other states. This is why many often associate the phrase “LLC Delaware” with the incorporation process.

When setting up a Delaware LLC, there are various costs to consider including state filing fees and hiring a registered agent. You may also want to consider utilizing a business delaware LLC service to handle all the paperwork and formalities for you.

To accurately estimate the cost of setting up a Delaware LLC, it’s important to take into account the various fees associated with the process, including business filing fees in delaware which vary depending on the type of entity being formed.

Delaware is known for being one of the most business-friendly states in the US, and it offers many advantages to LLC owners.

One of the main benefits of forming a Delaware LLC is that it has a flexible legal framework that allows you to customize your business structure to fit your needs.

Additionally, Delaware’s corporate laws are well-established and provide strong protections for LLC owners.

When it comes to incorporation fees comparison, Delaware is also an attractive option.

While other states may have lower initial fees to set up an LLC, they often have additional taxes and fees that can add up over time.

In contrast, Delaware has a flat annual franchise tax of $300 for all LLCs regardless of size or income.

This means that if you plan on running your business for several years, you may end up saving money by choosing Delaware as your state of incorporation.

Overall, forming a Delaware LLC can provide numerous benefits and cost savings compared to other states.

Factors Affecting The Cost Of Setting Up A Delaware LLC

Let’s start by looking at the state filing fees. That can vary depending on the type of LLC you’re creating.

Next, attorney fees could come into play depending on how complicated the LLC setup is.

Lastly, registered agent fees might be involved, and those can vary as well.

State Filing Fees

Looking into the factors affecting the cost of setting up a Delaware LLC, one important aspect to consider is the state filing fees. Compared to other states, Delaware has relatively low filing fees, which is one reason why it is such a popular state for businesses to incorporate in.

The fee for filing a Certificate of Formation with the Delaware Division of Corporations is $90, which is significantly lower than other states like California or New York. Additionally, there are no annual franchise taxes imposed on LLCs in Delaware until they begin generating income.

Overall, these relatively low state filing fees can help make setting up a Delaware LLC more affordable for entrepreneurs and small business owners alike.

Attorney Fees

Now that we have discussed the state filing fees as a factor affecting the cost of setting up a Delaware LLC, let’s move on to another important consideration – attorney fees.

While not required by law, many entrepreneurs and small business owners choose to hire an attorney to help them navigate the complexities of forming an LLC.

It is important to note that attorney fees can vary widely depending on the complexity of the business structure and other factors.

On average, rates for attorneys in Delaware range from $200-$500 per hour, but negotiation tips such as bundling services or asking for a flat fee can help bring costs down.

It is also worth considering if DIY options may be available for less complex businesses.

Registered Agent Fees

Now that we have discussed the role of attorney fees in setting up a Delaware LLC, let’s move on to another cost consideration – registered agent fees.

Choosing a registered agent is mandatory for all LLCs in Delaware, as they serve as the point of contact between the state and the business.

As such, many entrepreneurs opt to hire a professional registered agent rather than handling this responsibility themselves.

When comparing registered agent fees, it is important to consider factors like reliability, service offerings, and reputation alongside cost.

Ultimately, finding an affordable yet trustworthy registered agent can help keep costs down when forming a Delaware LLC.

Hiring An Attorney Vs. Using An Online Formation Service

When it comes to setting up a Delaware LLC, there are two main options: hiring an attorney or using an online formation service. Each option has its own set of pros and cons, so it’s important to weigh them carefully before making a decision.

One advantage of hiring an attorney is that they can provide personalized legal advice and guidance throughout the formation process. They can also help ensure that all legal requirements are met and that the LLC is set up correctly.

However, this option can be more expensive than using an online formation service. On the other hand, using an online formation service may be more cost-effective, but it may not offer the same level of personalized attention and legal expertise as an attorney.

It’s important to consider both options before making a decision on which one is right for your specific needs.

Additional Fees Required By The State

As mentioned earlier, setting up a Delaware LLC can be done through various methods, such as hiring an attorney or using an online formation service. However, regardless of the method you choose, there are additional fees required by the state that you need to pay to legally establish your business.

One of the fees required is the state filing fee, which is currently at $90. This fee covers the costs for registering your Delaware LLC with the Secretary of State.

Another fee you need to prepare for is the annual franchise tax, which varies based on your company’s revenue and gross assets in Delaware. Regardless of how much your company earns or owns in assets outside of Delaware, you will still have to pay this tax annually.

It’s important to note that failing to pay these fees can result in penalties or even dissolution of your LLC.

Making An Informed Decision For Your Business Venture

Assessing affordability is key when it comes to setting up a Delaware LLC. The cost of forming an LLC in Delaware can range from $90 to $500, depending on the type of service you choose. However, this is just the beginning. Additional fees may include annual franchise taxes, registered agent fees, and other expenses that may not be immediately apparent.

Before deciding on whether to form a Delaware LLC, it is important to evaluate alternatives as well. You may find that other states offer more favorable tax rates or have lower fees associated with forming an LLC.

Additionally, if you are not conducting business in Delaware or using it as your primary place of operations, there may be no need to set up a Delaware LLC at all.

By taking the time to assess affordability and evaluate alternatives, you can make an informed decision for your business venture and avoid unnecessary expenses.


In conclusion, setting up a Delaware LLC can bring numerous benefits to your business, including limited liability protection and tax advantages.

The cost of forming a Delaware LLC can vary depending on factors such as legal fees and state filing requirements. However, by weighing the pros and cons of hiring an attorney versus using an online formation service, you can make an informed decision that best suits your needs and budget.

Ultimately, investing in the formation of a Delaware LLC can prove to be a wise decision for your business’s future success. By taking the time to understand the costs involved and seeking professional guidance when necessary, you can ensure that your business is set up for long-term growth and profitability.

StartLLCHub is the ultimate destination for all your LLC formation needs.

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