Starting a service business in Delaware comes down to four things: picking a structure, registering with the state, getting licensed for your trade, and setting up a way to bill customers. Filing an LLC in DE costs $90, ongoing reporting is $300/yr (llc), sales tax is No sales tax, and personal income tax runs 0%–6.6%. Below is the full sequence, the fees you should budget for, the licenses most trades need, and the deadlines that catch new Delaware owners off guard.
Most new registrations come out of Wilmington, Dover — local business licenses are issued at the city or county level, so check yours after the state filing clears.
| Item | DE cost |
|---|---|
| LLC / entity filing (one-time) | $90 |
| Annual / periodic report | $300/yr (LLC) |
| Federal EIN (IRS) | Free |
| Sales tax registration | Usually n/a |
| Trade / professional license | Varies by trade |
| Local business license | Set by city / county |
Fees change — confirm current amounts with the DE Secretary of State and the Delaware Division of Revenue.
Choose your structure and file with the DE Secretary of State ($90). Get your free EIN from the IRS the same day.
Open a business bank account and confirm which local taxes apply where you work.
Apply for your trade license and local business license. This is usually the longest step: State business license ($75); Professional license.
Get general liability insurance (and workers' comp before your first hire), then set up estimates and invoicing so you can bill the day you're cleared to work.
LLC Filing Fee
$90
Annual Report
$300/yr (LLC)
Sales Tax
No sales tax
Income Tax
0%–6.6%
Choose business structure
File with DE Division of Corporations
Get EIN
Get business license
Register for gross receipts tax
Open business bank account
Delaware has no sales tax — great for service businesses
Annual tax for LLCs is a flat $300
Popular for incorporation due to business-friendly courts
Business-friendly court system (Court of Chancery), no sales tax, and flexible business laws.
Online LLC filings with the DE Secretary of State are typically processed in a few business days, and an EIN from the IRS is issued immediately online. Trade licensing and local permits usually take longest — plan on two to six weeks before you're fully cleared to work, depending on your trade.
No — you can operate as a sole proprietor in Delaware and still invoice customers legally. An LLC ($90 to file, $300/yr (llc)) separates your personal assets from business liability, which matters most once you're on customer property, hiring help, or signing contracts.
Delaware's sales tax situation is: No sales tax. Even so, some local jurisdictions levy their own tax, and other taxes may apply to your gross receipts — confirm your obligations with the Delaware Division of Revenue before your first invoice.
Open a business bank account under the registered name, then invoice from a tool that applies DE tax per line item and accepts cards. Glo Invoice sends invoices by text with a one-tap pay link, and Tap to Pay lets you charge on site before you leave the job.