[0:00] The short answer Dan: To start an LLC in Delaware, you file a Certificate of Formation with the Delaware Division of Corporations and pay the $110 filing fee. Maya: A hundred and ten dollars for the famous Delaware name. Where's the catch? Dan: The catch is a yearly bill. Delaware LLCs file no annual report, but every one pays an annual tax on June 1, and for 2026 that tax is $400. Maya: This is The Business Formation Podcast. Today, Delaware for 2026, in six steps, with what it all costs and the three best ways to have it filed for you. Let's begin with the name. [0:40] Step 1: Choose a name Dan: Delaware wants Limited Liability Company, L.L.C., or LLC in the name, and the name has to be distinguishable from every name already on record. Maya: How do I find out whether mine is free? Dan: The Division of Corporations runs a name search on its website. Check there before you pay anyone for anything. Maya: And if I like a name but I'm not ready to file? Dan: You can reserve it for 120 days. That costs $75. [1:10] Step 2: Name a registered agent Maya: Now the agent. Does Delaware let me do it myself? Dan: It does, which surprises people. The agent can be the LLC itself, if it keeps an office in Delaware, or a Delaware resident, or a business with an office in the state. Maya: So I just list my house? Dan: Only if you actually live there. The agent can't operate solely through a virtual office or mail forwarding, and whoever you list is generally expected to be at that office to accept papers. Maya: Most founders aren't in Delaware. Dan: Right, which is why most use a commercial agent. Whoever you pick, their details are public. If you change agents later, a certificate of amendment that changes only the agent costs $50. [1:55] Step 3: File the Certificate of Formation Maya: Okay, the filing itself. Dan: You complete the Certificate of Formation and either upload it through the Division of Corporations' document filing service or mail it in. The fee is $110. Maya: Is the form long? Dan: It's short. Really just the name and the registered agent, signed by an authorized person. Maya: I'm Maya, by the way, here with Dan. Dan: Glad you're here, Maya. Maya: Can I speed it up if I'm in a hurry? Dan: Yes, and Delaware sells speed in tiers. Next day runs from $50 to $100. Same day is $100 to $200. Two hours is $500, and one hour is $1,000. Maya: A thousand dollars for an hour! Dan: That's the top of the ladder. The cheaper tiers are there if a deadline is close. [2:44] Step 4: Write an operating agreement Maya: Is there anything to file for the operating agreement? Dan: No. Keep it with your records. There's no filing and no state fee. Maya: So why bother? Dan: Because Delaware is known for letting the agreement do the heavy lifting. Its LLC law gives owners a lot of freedom, and your own document is where you use it. Write down who owns what, how profits are split, who decides, and what happens when a member leaves. Maya: Even if I'm the only member? Dan: Yes. [3:13] Step 5: Get a free EIN Maya: Next, the tax ID. Dan: Apply with the IRS at IRS.gov. It's free, and you do it after the state files your Certificate. Maya: How fast? Dan: If the online application is approved, the number comes back right away. Keep the Social Security number or ITIN of the person in charge handy. Maya: What about that ownership report I keep hearing about? Dan: For U.S. companies, you can skip it. FinCEN no longer requires it. [3:42] Step 6: Pay the annual tax by June 1 Maya: And this is the part that makes Delaware different. Dan: It is. Delaware doesn't ask LLCs for an annual report. It asks for a tax. The amount is $400, due June 1 every year, starting the year after you form. Maya: I thought it was $300. Dan: It was, before tax year 2026. The state raised it to $400 this year. Maya: Does the tax get smaller if I form in the fall? Dan: No. It isn't prorated. A company formed in December owes the same $400 on the next June 1 as one formed in January. Maya: What if I forget? Dan: There's a $200 penalty, and interest of 1.5% a month on the tax and the penalty. Leave it unpaid for three years, and the state cancels your certificate. Maya: Canceled, as in the LLC stops existing? Dan: The certificate is what makes it a company, so yes, that's the risk. A $400 bill that you ignore can turn into a much bigger problem. Maya: So pay it on time and move on. Dan: That's the whole strategy. [4:52] What it costs Maya: So what's the total to do it all myself? Dan: $110 to form. Then $400 every June 1, starting the year after. The EIN costs nothing. Add $75 if you reserve the name, or $50 if you swap agents later. Maya: And the agent fee on top? Dan: Yes, whatever your agent charges. That part isn't set by the state. Maya: So if I reserve the name and form right away, what's the first bill? Dan: $75 plus $110, which is $185. Then the tax is not due until the June 1 after you form. Maya: So the tax is the number to plan around. Dan: Exactly. In Delaware, the $110 is the small part of the picture. [5:37] A year-one checklist Maya: Give me an order of operations. Dan: Pick the name and the agent. If you need the name held, reserve it for 120 days. File the Certificate. Write the operating agreement. Get your EIN. Then put June 1 in your calendar. Maya: Which one catches people out? Dan: The tax. There's no report to prompt you, so if you don't mark the date yourself, the penalty gets there first. [6:02] The 3 best ways to file in Delaware Maya: And if I want someone to take care of all this? Dan: Here are the three best ways to file in Delaware. Number one, our pick, is Mainstay Filing, $199 a year plus the state fee. With the $110 state fee, checkout comes to $309. Maya: What's inside that? Dan: Your Certificate of Formation filed, your EIN application, and your registered agent every year. It renews at the same $199. And it reminds you before the June 1 tax. Maya: Does it pay the tax for me? Dan: No. The $400 goes to the state and it's yours to pay. Mainstay just makes sure the date doesn't sneak up on you, since Delaware sends no annual report to prompt you. Maya: Number two? Dan: DE Registered Agent.org. It prepares and files your Certificate for $199 plus the state fee, with your first year of registered agent service free, then $99 a year. Maya: And three? Dan: Delaware Registered Agent.ai. The same offer: $199 plus the state fee, a free first year of agent service, then $99 a year. Maya: How do I choose? Dan: Delaware has no annual report, so there's nothing for a service to file each year. If all you need is an agent, two and three cost less from year two, at $99. If you want the agent and the date reminder in one steady price, that's Mainstay. [7:32] Three years of service fees Maya: Give me a number over three years. Dan: Mainstay is $199 a year, so $597. The other two are $199 in year one, then $99 and $99, for $397. Maya: Two hundred dollars apart. Dan: Yes. And the $400 tax is identical with all three. [7:59] Recap Maya: One more pass, start to finish. Dan: Choose a name with LLC in it, name an agent with a Delaware office, file the Certificate of Formation for $110, write an operating agreement, get your free EIN, and pay the $400 tax every June 1. Maya: The links to all three services and every official source are in the show notes. Thanks for listening to The Business Formation Podcast, and good luck with your new Delaware LLC.