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Delaware business license

Yes, Delaware has a state business license. The Division of Revenue issues it, you apply and renew in One Stop, and it comes with a gross receipts tax instead of a sales tax.

Delaware facts from official pages

Forming the LLC
Annual business license requirementrevenue.delaware.gov, checked (archived copy)
Forming the LLC
No state or local sales taxrevenue.delaware.gov, checked (archived copy)
Forming the LLC
Gross receipts tax on the seller of goods or servicesrevenue.delaware.gov, checked (archived copy)
Forming the LLC
Licenses are issued by calendar year, one or three year renewalonestop.delaware.gov, checked (archived copy)
Forming the LLC
One Stop does not handle municipal, county or professional licensesonestop.delaware.gov, checked (archived copy)
Forming the LLC
Delaware One Stop for adding, renewing and closing licensesonestop.delaware.gov, checked (archived copy)
Forming the LLC
Delaware Business Licenses Search on the Division of Revenue siterevenue.delaware.gov, checked (archived copy)
Franchise or privilege tax
$400 annual tax for every LLCdelcode.delaware.gov, checked
Forming the LLC
A Delaware business license is required to register a DBArevenue.delaware.gov, checked

Last updated

Delaware does issue a general business license, and it is issued by the tax office, not a local permit. The Division of Revenue says every business doing business in the state has an annual business license requirement, plus a gross receipts tax. Formation is separate and handled by the Division of Corporations. See our Delaware LLC guide for that part.

What makes the Delaware license different?

It is run by the same office that collects the taxes. The Division of Revenue's overview lists the pieces for a business that operates in Delaware:

  • An annual business license.
  • A gross receipts tax, charged on the seller of goods or the provider of services.
  • Withholding tax, if you pay wages.
  • Corporate income tax, if you formed a corporation.

Delaware has no state or local sales tax. Sellers of goods also need a retail or wholesaler license on top. The gross receipts tax is paid to the Division of Revenue monthly or quarterly, depending on the activity.

How do I get and renew it?

Use Delaware One Stop, the state portal for registering and licensing a business. You create an account, register the business, and the same account lets you add, renew, change or close licenses later.

Have these ready when you renew:

  • Your One Stop login.
  • The business license number.
  • A card or ACH payment method. Visa, MasterCard, Discover and American Express are accepted, and the card billing address must be in the United States.
  • Any changes to your business activity, EIN or SSN, name, addresses or contact details.

Licenses are issued by calendar year. You renew each year or take the three year option. If you hire your first employee, you also open a withholding account with the Division of Revenue and register with the Department of Labor.

The overview page lists no fee, and we do not quote one. Check One Stop at the time you apply. If you do not yet have an EIN, start with how to get an EIN.

What about city, county and professional licenses?

One Stop does not handle them. The Division says professional, municipal, county and other licenses are renewed separately, and it points to Business First Steps for the list of professional licenses. Ask your city or county about local ones, and ask the licensing board that covers your trade about professional ones. A plumber, a nurse and a restaurant owner each answer to a different office.

How do I check a Delaware business license?

Start from the license number on your certificate, or sign in to One Stop to see the accounts attached to your business.

The Division of Revenue site has a Delaware Business Licenses Search in its Services menu, next to the Trade, Business and Fictitious Names Search. Our business license lookup guide and the state tax ID lookup explain what each number means.

Yes to the DBA. A DBA registration needs an active license account, so our Delaware DBA guide tells you to register the license first.

The LLC tax is separate. Delaware charges a $400 annual tax on every LLC, paid to the Division of Corporations, not the Division of Revenue. See fees by state for the wider picture.

This page does not cover professional board licenses, local permits or the amount of gross receipts tax you will owe.

Good to know

Questions people ask

Does a Delaware LLC need a business license?

A company that does business in Delaware does. The Division of Revenue describes an annual business license requirement for all businesses and says it applies whether or not you formed in the state. Forming the LLC alone is a Division of Corporations filing.

Does Delaware have sales tax?

No. The Division of Revenue says Delaware has no state or local sales tax. Sellers pay a gross receipts tax instead, and sales of goods also need a retail or wholesaler license.

How long does a Delaware business license last?

Licenses are issued by calendar year. When you renew, you can choose one year or a three year renewal.

Does the Delaware license cover my city or county permits?

No. One Stop does not handle professional, municipal or county licenses. Those are renewed separately with the city, county or professional board.

Do I need a business license to register a Delaware DBA?

Yes. The Division of Revenue requires an active business license account for every DBA registration. A Trade Name Only license exists for entities that do not do business in Delaware.

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