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Delaware and Nevada both draw owners who do not live there, so the useful question is what each costs every year and what a missed date costs. In short: a Delaware LLC pays one flat tax of $400 each June. A Nevada LLC pays two charges in its anniversary month, $150 for the annual list and $200 for the State Business License. Every figure here is quoted from the state's own fee page, help page or statute.
The numbers next to each other
| Delaware | Nevada | |
|---|---|---|
| Fee to form an LLC | $110 for a certificate of formation (fee schedule) | $75 for articles of organization, then a $150 initial list and the $200 business license by the end of the next month (NRS chapter 86, SBL FAQ) |
| Yearly filing | None for LLCs (annual tax page) | Annual list, $150 (NRS chapter 86) |
| Yearly tax or license | $400 LLC tax (6 Del. C. 18-1107) | $200 State Business License renewal (SBL FAQ) |
| Due date | On or before June 1 (annual tax page) | Last day of the anniversary month (NRS chapter 86) |
| Late charge | $200 plus 1.5% a month interest (annual tax page) | $75 added to a late list (NRS chapter 86); $100 on a late business license fee (SBL FAQ) |
| Name reservation | $75 for 120 days (fee schedule, statute) | $25 for 90 days (name reservation) |
| Good standing proof | $50 short form certificate of status (certificates) | $50 Certificate of Existence (sample certificates) |
| Registering an out-of-state LLC | $200 foreign certificate of registration (fee schedule) | $75, plus a $150 initial list (NRS chapter 86) |
These are state charges only. Both states need a registered agent in the state, and an agent service bills separately.
What it costs to start
Delaware's start-up charge is the $110 certificate of formation. Nevada's filing fee looks lower. The statute sets $75 for "Filing the original articles of organization, or for registration of a foreign company," but two more charges follow at once. The LLC files an initial list, for which it "shall pay to the Secretary of State a fee of $150," and takes out a State Business License. The Secretary of State says "Your Initial List of Officers and State Business License filing and fees are due no later than the last day of the month following the filing of your organizational documents." So a new Nevada LLC pays $75, $150 and $200, or $425, in its first weeks (NRS chapter 86, SBL FAQ). Check the current formation fee on the Secretary of State's forms and fees page before you file.
How the yearly bill works in Delaware
Delaware keeps it to one payment. The statute says each LLC "shall pay an annual tax, for the use of the State of Delaware, in the amount of $400." The Division of Corporations says these taxes "are due on or before June 1st of each year." There is no list of managers to file and no report form. The date is the same for every LLC, which makes it easy to plan for.
Miss it and the cost rises fast. The Division says: "Penalty for non-payment or late payment is $200.00. Interest accrues on the tax and penalty at the rate of 1.5% per month."
How the yearly bill works in Nevada
Nevada splits the bill in two and ties it to the month you formed. Chapter 86 of the Nevada Revised Statutes says the LLC "shall pay to the Secretary of State a fee of $150" for each annual list, due "on or before the last day of the month in which the anniversary date of its organization occurs." The State Business License is renewed alongside it. The Secretary of State's FAQ says "The annual renewal fee is $500 for Corporations, and $200 for all other business entity types." An LLC falls in the second group.
A missed list costs more too: "For default there must be added to the amount of the fee a penalty of $75." The late rule on the license reads: "A business that fails to submit the annual fee required by the due date shall pay a penalty in the amount of $100 in addition to the annual fee." The Nevada guide explains the status words a missed list leads to.
Names, certificates and fit
Nevada reserves a name for $25, held "for 90 days." Delaware charges $75 for "a period of 120 days," which its statute lets you renew. Nevada also accepts more endings, such as "Ltd." and "LC." Both charge $50 for a short proof of good standing. Check a name first with our LLC name search.
Delaware is known for its company law and courts, which matter most to corporations raising outside money; see LLC vs corporation. Nevada's case rests on a slightly lower yearly total. If yearly cost is your main test, also read Wyoming vs Nevada.
The two-state trap
Forming in Delaware or Nevada does not move your business there. If the LLC has an office, staff or regular trade in your home state, that state will usually expect it to register as a foreign LLC. You then pay two sets of fees and file two sets of yearly reports: one to the state you formed in and one to the state you work in. Our foreign LLC registration guide explains when the rule bites, and which state to form an LLC in helps you test your own case. For most owners who live and work in one state, forming at home costs less overall.