Any establishment conducting business in Delaware must first determine the type of business they wish to maintain: Sole Proprietorship, Partnership, Corporation or LLC.

(See attached Business Structure Table.)

The Delaware Division of Revenue does not advise businesses how to structure their organization. Instead, questions related to business arrangement should be made to a registered agent, accountant or tax lawyer.

If you decide to incorporate in Delaware:

In Delaware, corporations file taxes differently than the other Delaware business types (who report their business income on their yearly Personal Income Tax statements). Corporations in Delaware must additionally adhere to the following:

  1. If incorporated in Delaware, corporations must pay (in addition to Gross Receipts tax) an annual Franchise tax to the Delaware Division of Corporations. The Franchise Tax fee is based on the corporation's number of authorized shares.

    If incorporated in another state but doing business in Delaware, corporations must register with the Delaware Division of Corporations.

    For more information and/or an incorporating package, please visit How To Form a New Business Entity or contact:

    Delaware Division of Corporations
    PO Box 898
    Dover, Delaware 19903
    Phone: (302) 739-3073
    www.corp.delaware.gov

  2. Remit an annual Corporate Income Tax return based on property, wages and sales in Delaware. (Chapter 19, Title 30, Delaware Code)

Step 2: Requirements for Delaware Businesses