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If you’re considering starting a business in the state of Delaware, one of the first steps you may need to complete will be getting your business license(s) and/or permit(s).
The need for a business license in Delaware largely depends on your business type, as well as on its location.
This article will help you determine which licenses and permits you’ll need at the local, state, and federal levels (if any). We’ll also cover the steps you’ll need to take in order to apply for a Delaware business license, as well break down the renewal requirements that you’ll need to know.
We recommend registering your business as an LLC before getting your business license(s) in order to avoid potentially having to repeat the process later on. To get started, you can use a trusted LLC formation service.
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In Delaware, businesses are required to obtain various licenses and permits at the local, state, and federal levels. Here’s a general breakdown:
Below, we’ve detailed common ways in which your business type can dictate the licenses you’ll be required to obtain, as well as specific examples of these:
However, this is not the only factor influencing the exact combination of licenses you’ll need — the location of your business within Delaware plays an important role as well.
In this section, we’ve provided a succinct overview of the potential licenses and permits that your business may need due to local, state, and federal requirements:
Since the exact permits and licenses your business will need are entirely unique to your situation, you’ll have to conduct thorough research into your own local, state, and federal regulations to smoothly launch your business.
Alternatively, many entrepreneurs opt to leverage the expertise of third-party services to handle this on their behalf.
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We recommend registering your business as an LLC before getting your business license(s) in order to avoid potentially having to repeat the process later on. To get started, you can use a trusted LLC formation service.
Tailor Brands ($0 + State Filing Fees)
In order to get your business license(s) in Delaware, you will need to complete the following steps:
Let’s take a look at each step in more detail below.
Before setting out to obtain a business license in Delaware, it’s pivotal that you first choose an appropriate structure for your business. Sole proprietorships, general partnerships, and corporations are all common choices, however it’s often seen as the most advantageous for small businesses in Delaware to register as a Limited Liability Company (LLC). Here are a few reasons for why:
Many small business owners opt to avoid the tricky process of forming an LLC by instead leveraging the help of third-party LLC formation services.
The second step you’ll need to complete before applying for your business license is to obtain your EIN. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses in the United States so that their financial transactions can be identified and tracked.
An EIN is often necessitated when applying for various permits and licenses as it allows local and state governments to ensure your business is operating within the confines of the law. You can obtain it in a number of ways:
Note: If you are a sole proprietor, you will be able to use your Social Security Number (SSN) instead (as long as you do not have employees).
After settling on the appropriate structure for your business and initiating the application for your EIN, the next step is to focus on securing the necessary licenses and permits to operate legally within your locale and industry.
Note: Delaware provides a directory that lists the links to various counties and cities in the state. You can access it on the SOS’s County & City Directory of Local Businesses page.
In Delaware, all business licenses expire on December 31 of each year, or of every three years (for those with three-year licenses.).
The renewal process can be done through the Delaware One Stop Licensing platform, through which you can add, renew, or modify licenses through the Delaware Taxpayer Portal. If you’re uncertain whether you need to renew any of your business’s licenses, make sure to reach out to the agency that issued your business license for clarification.
Alternatively, you can use a third-party service or a professional attorney for this process. This can be a good choice if you want to ensure that you avoid potential fines, as well as if you want to be as time-efficient as possible.
If you’re interested in finding out more about this process, see our article on How to Get a Business License.
In Delaware, obtaining a general business license will cost you $75 per annum for your primary business location, and an extra $25 per annum per location after that.
However, if a business chooses a three-year license, the total cost isn’t discounted. Instead, the business will be charged the equivalent of three annual fees upfront for the entire three-year period.
Note that Delaware’s cities and counties have their own specific business licenses in addition to the statewide business license, and so fees may vary as specified by each local government agency.
To find out the exact costs, you’ll need to know your business type and where you want to set it up. However, many business owners use third-party services or business attorneys when it comes to this in order to save time, money, and avoid being caught up in procedural rigmarole.
We recommend registering your business as an LLC before getting your business license(s) in order to avoid potentially having to repeat the process later on. To get started, you can use a trusted LLC formation service.
Tailor Brands ($0 + State Filing Fees)
To obtain a Delaware business license, you will need to choose a business name and register your business structure with the SOS. You’ll also need to obtain an EIN from the IRS and submit your application to the Division of Revenue. Based on your location and business type, you might also need to register with local, state, or federal authorities.
Yes. If you conduct business within the state, you must obtain a business license from the Division of Revenue. Delaware licenses ensure businesses follow state regulations, pay taxes, and operate legally. It’s important for both in-state and out-of-state businesses conducting transactions in Delaware to have this license.
Yes. You can get Delaware business licenses online. The state offers its One Stop Business Licensing service, which facilitates the online registration process and renewal of business licenses. This service streamlines the process, making it convenient for businesses to get licensed without visiting a physical office. For state-specific information, check out our How to Get a Business License page.
To register your business name in Delaware, you’ll need to file a “Name Reservation” with the Delaware Division of Corporations. This can be done online or via mail. You must ensure that your desired name is unique and follows state naming guidelines. Once approved, the name is reserved for a specific period of time.
For all related articles, have a look at our How to Get a Business License page.
Information on this page was researched and gathered from a multitude of sources and was most recently updated on September 9, 2024
Any Information on this site is not guaranteed or warranted to be correct, accurate, or up to date. StateRequirement and its members and affiliates are not responsible for any losses, monetary or otherwise. StateRequirement is not affiliated with any state, government, or licensing body. For more information, please contact your state's authority on insurance.
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