Step 2: Requirements for Delaware Businesses

Requirements for registering a business in Delaware differ by business entity type, location and whether or not the business has employees.

To determine your registration requirements, look at the Business Registration Chart below:

Step 1

Decide on your Business Name on Business First Steps and Legal Structure (Legal Business Structures Table)

Will you be a Sole Proprietor?

If yes, proceed to step 3

If no, continue with step 2

Step 2

Obtain a Federal Employer Identification Number (FEIN) from the IRS File your legal entity with the Delaware Division of Corporations

Step 3

Use the Delaware One Stop to register with Division of Revenue

If you will have employees in Delaware, continue in One Stop to register with the Delaware Division of Unemployment Insurance and the Division of Workers’ Compensation.

Step 4

Obtain other State of Delaware Licenses, Certifications, or Registrations. For a list of state regulated industries visit Business First Steps

Step 5

Obtain other Local Licenses, Certifications, or Registrations and research Zoning Requirements on Business First Steps

Congratulations! You have completed the business registration steps!

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Corporations

Entities who want to incorporate in Delaware must:

All Delaware Businesses

State Licensing

Any person or entity conducting a trade or business in the State of Delaware, including corporations, must obtain a State of Delaware Business License from the Delaware Division of Revenue.

To obtain a Delaware business license:

Licensing Fees and Services

The annual fee for a Delaware business license varies; however, the rate is generally $75.00 for a first location. A separate license is required for each separate business activity.

After the first year, Delaware businesses may additionally opt to buy a three-year business license. The cost of a three-year license is not discounted; businesses will pay three times their regular yearly license fee for a three-year license.

Delaware also offers a 75% senior citizen discount on annual license fees for individuals 65 years of age or older on or before January 1st of the current license year. Businesses must meet specific requirements to be eligible for this discount.

Additional License Requirements

Depending on your business location, some counties and towns may also require business licenses. Check with local and county offices to see if your area requires additional licenses.

Some business types require licensing from additional state agencies as well. Please visit Revenue’s Tax Tips to see if your business type has special requirements.

Businesses with Employees

Businesses with employees must also register with the Delaware Department of Labor’s Division of Unemployment Insurance and the Division of Workers Compensation.

Businesses without Employees do not need to register with the Division of Unemployment Insurance or the Division of Workers Compensation.