How do I get a business license?

Delaware Division of Revenue (state business license) / Delaware Division of Corporations (entity formation) / Local jurisdiction for local licenses

Step by Step

How to do it

Determine your business structure: sole proprietor, LLC, corporation, partnership
Register your business entity with the Delaware Division of Corporations (for LLCs and corporations) at corp.delaware.gov or through a registered agent - Delaware is the most popular state for business incorporation in the US due to its corporate law; entities formed here must still register in their state of operation
Obtain a Delaware Business License from the Delaware Division of Revenue - required for virtually ALL businesses operating in Delaware; apply online at revenue.delaware.gov (One Stop) or in person at any Division of Revenue office; $75 annual fee for most businesses
Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if forming an entity, hiring employees, or operating as a partnership
Register with the Delaware Division of Revenue for withholding tax and unemployment insurance if you have employees
Check for local business licenses: some Delaware cities and counties require additional local licenses - verify with your specific municipality (Wilmington, Dover, Newark, etc.)
Check for industry-specific licenses: contractors, health professionals, real estate agents, cosmetologists, and many others require state professional licenses through the Delaware Division of Professional Regulation at dpr.delaware.gov
Renew your Delaware Business License annually; renew entity annual report with Division of Corporations

Details

What you need to know

Required Docs

Business name and type of activity
Delaware business address (physical location)
Entity formation documents if LLC or corporation
EIN or Social Security number
Industry-specific certifications if applicable

Fee

Delaware Business License: $75 per year for most businesses; LLC formation: $90 (state filing fee); corporation: $89+; annual report fees: $50 (LLC), $50+ (corporation); local licenses vary RENEWAL: Business license: annual (December 31 renewal deadline); entity annual report: annual (LLC: June 1; corporation: March 1) ONLINE OPTION: Yes - One Stop business licensing at revenue.delaware.gov/one-stop; corp.delaware.gov (entity formation); dpr.delaware.gov (professional licenses) WHERE TO GO: Delaware Division of Revenue (business license); Delaware Division of Corporations (entity formation); Division of Professional Regulation (professional licenses); local municipality for local permits

Online Option

Yes - One Stop business licensing at revenue.delaware.gov/one-stop; corp.delaware.gov (entity formation); dpr.delaware.gov (professional licenses)

Where to Go

Delaware Division of Revenue (business license); Delaware Division of Corporations (entity formation); Division of Professional Regulation (professional licenses); local municipality for local permits

County-specific variations apply

Delaware's three counties do not impose county-level business licenses. However, municipalities within the counties (Wilmington, Dover, Newark, Middletown, Seaford, etc.) may require local business licenses or permits. City of Wilmington has its own business license requirement. Verify local requirements with your specific city or town.

Delaware Notes

Important state-specific details

Delaware Business License ($75/year): required for virtually ALL businesses physically operating in Delaware - this is a STATE requirement regardless of where the entity is incorporated.
Delaware is the most popular state for business incorporation in the US - over 60% of Fortune 500 companies are incorporated here due to the Court of Chancery and flexible corporate law. However, incorporation in Delaware does NOT exempt a business from obtaining a Delaware Business License if operating here.
Delaware has NO state sales tax - one of only five states with no sales tax; this is a significant business advantage.
Delaware Division of Professional Regulation (DPR): licenses contractors, cosmetologists, real estate agents, health professionals, and many others - dpr.delaware.gov | (302) 744-4500.
Delaware Annual Franchise Tax: corporations pay an annual franchise tax to the Division of Corporations in addition to the business license fee; calculated based on authorized shares or assumed par value.
Delaware has a state income tax (graduated rates).

Official Source

State office contact

State Office

Delaware Division of Revenue (business license) - revenue.delaware.gov | (302) 577-8200; Delaware Division of Corporations - corp.delaware.gov | (302) 739-3073; DPR - dpr.delaware.gov | (302) 744-4500