Form an LLC in Delaware
Delaware is the gold standard for startups planning to raise venture capital. Its Court of Chancery specializes in business law, and most VCs expect Delaware incorporation. However, for bootstrapped software founders, Wyoming is usually a better (and cheaper) choice.
Total cost
$240 ($150 + $90 state fee)
State filing fee
$90
Processing time
1-2 business days
Annual cost
$300/year (franchise tax)
Why form in Delaware
- Preferred by venture capitalists and institutional investors
- Court of Chancery — specialized business court with established case law
- Flexible operating agreement terms — highly customizable LLC structures
- No state income tax on revenue earned outside Delaware
- Fast processing — 1-2 business days for standard filing
- Expedited same-day filing available ($100 add-on through QuickBiz)
Things to consider
- $300/year franchise tax applies to all LLCs regardless of income
- Higher ongoing costs than Wyoming ($300/yr vs $60/yr)
- If you're bootstrapped and not raising VC, Wyoming is usually cheaper and simpler
- You'll need to register as a foreign LLC in your home state if different from Delaware
Best for
Founders planning to raise venture capital, bring on institutional investors, or eventually pursue an exit (acquisition/IPO). If fundraising is in your future, Delaware is the safest choice — investors expect it.
How to form an LLC in Delaware with QuickBiz
- 1Choose your LLC name (must include "LLC" or "Limited Liability Company")
- 2We file Certificate of Formation with Delaware Division of Corporations ($90 fee)
- 3We set up your registered agent via Northwest (included)
- 4We apply for your EIN with the IRS (free)
- 5We generate your operating agreement (designed for software businesses)
- 6You receive all documents in your QuickBiz dashboard
Frequently asked questions
How much does it cost to form an LLC in Delaware?
The Delaware state filing fee is $90. With QuickBiz, the total cost is $240 ($150 service fee + $90 state fee). This covers LLC formation, EIN, registered agent (included), operating agreement, and compliance tools.
Why do startups incorporate in Delaware?
Delaware has the most business-friendly legal system in the US. Its Court of Chancery specializes in corporate law, providing predictable legal outcomes. VCs prefer Delaware because they're familiar with its laws and it simplifies due diligence.
What is the Delaware franchise tax?
All Delaware LLCs must pay a $300 annual franchise tax due by June 1 each year. This applies regardless of income or where you operate. This is separate from the formation filing fee.
Should I form in Delaware or Wyoming?
If you plan to raise venture capital, choose Delaware. If you're bootstrapped or self-funded, Wyoming is usually better — it has no franchise tax, lower annual fees ($60/yr vs $300/yr), and no state income tax.
Can I get expedited Delaware LLC formation?
Yes. QuickBiz offers expedited Delaware filing as a $100 add-on. This gets same-day processing (Priority 4) from the Delaware Division of Corporations instead of the standard 1-2 business days.
Ready to form your Delaware LLC?
$240 ($150 + $90 state fee). Everything included. Takes about 5 minutes.
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