Key Takeaways

  • All businesses operating in Delaware must obtain a Delaware business license from the Division of Revenue, even if incorporated elsewhere.
  • The license fee starts at $75 per year, with additional fees for multiple locations or specific professions.
  • Businesses must also register for Delaware gross receipts tax and may need specialized permits or local licenses.
  • Delaware offers advantages such as no sales tax, minimal franchise tax for small businesses, and strong legal protections.
  • A Delaware business license must be renewed annually or every three years depending on your chosen license term.
  • Starting June 2, 2025, Delaware will implement new rules for registering “doing business as” (DBA) names at the state level.
  • Failure to comply with Delaware licensing or tax registration laws can lead to penalties and administrative dissolution.

How Do I Get a Delaware Business License?

To get a Delaware business license, you have to apply to the State of Delaware Department of Revenue. Many companies that incorporate in Delaware aren’t truly doing their business in the state of Delaware and don’t wish to obtain a Delaware business license.

Business Licensing Requirements for Out-of-State Companies

Any company conducting business in Delaware—whether incorporated in the state or registered as a foreign entity—must obtain a Delaware business license. This requirement applies even if your company’s headquarters or operations are primarily located elsewhere but generates revenue from Delaware clients or property.

Out-of-state businesses often mistakenly believe they are exempt from Delaware licensing if they are incorporated there but operate elsewhere. However, Delaware distinguishes between incorporation and doing business. If you maintain an office, have employees, or sell goods and services within the state, you are required to have an active Delaware business license.

In addition, certain professional activities, such as real estate, healthcare, and legal services, may require additional professional or occupational licenses. These are typically issued by the Delaware Division of Professional Regulation.

Why Obtain a Delaware State Business License?

  • Delaware has the nation's best and most versatile business entity legal guidelines.
  • Delaware has low franchise tax for smaller companies.
  • Delaware has no tax on capital stock or resources.
  • Delaware has no stock switch taxes or capital shares.
  • Delaware has no gross sales tax.
  • A Delaware enterprise court (Court of Chancery) also minimizes time, value, and risk of economic litigation.

Cost of Delaware Business License

A Delaware business license costs $75 for 12 months on your first location and $25 for every extra location. You must pay it at the beginning of every 12 months, and you can pay for as many as three years at one time.

Additional Fees and Multi-Year Options

Delaware business owners can save time by prepaying license fees for up to three years at once. The base fee of $75 applies per location, but some businesses—especially those in regulated industries—may face supplemental licensing costs or higher gross receipts tax rates.

Certain professions, such as contractors, alcohol distributors, or gaming vendors, are subject to separate state agency fees or federal licensing requirements. Businesses operating in multiple Delaware municipalities may also need local-level permits, especially for zoning or public safety compliance.

Payments can be made online via the Delaware Division of Revenue’s online portal or by mail. Electronic payments allow for immediate access to a temporary license while your permanent one is being processed.

How Long Will It Take Me to Get the Delaware Business License?

The Delaware Department of Revenue takes about one month to process your application and mail out the type of license you requested. In the event you apply online, a temporary Delaware business license is available for you to print instantly. Part of having a Delaware business license is paying the Delaware gross receipts tax; this can be from 0.1037 percent to 2.0736 percent of your gross receipts, with the exact amount depending on your trade.

Wholesale industries with smaller revenue margins have smaller percentages to pay, and larger revenue industries, like manufacturers, pay the next highest amounts. Small- to medium-sized companies appreciate Delaware’s exemption for such businesses. Your first $80,000 every month is exempt from the gross receipts tax in Delaware.

How Do I Contact the Delaware Department of Revenue?

The Delaware Department of Revenue has three locations:

  1. Wilmington:
    Department of Revenue
    Carvel State Office Building
    820 North French Street
    Wilmington, DE 19801
    302-577-8205
  2. Dover:
    Department of Revenue
    Thomas Collins Building
    540 South Dupont Highway, STE 2
    Dover, DE 19901
    302-744-1085
  3. Georgetown:
    Department of Revenue
    422 North Dupont Highway STE 2
    Georgetown, DE 19947
    302-856-5358

It has been reported that these divisions usually reply quickly to phone calls and messages. Most state agencies take a long time to reply to phone calls, but you'll be able to get help in under a minute.

Obtaining a Delaware Business License

You will want a State of Delaware business license even if you happen to live in another state but plan to run your business in Delaware. Understanding the Delaware business license laws will guarantee you will comply with the licensing requirements.

Delaware Business License for Online and Home-Based Businesses

Delaware requires online businesses and home-based entrepreneurs to obtain a business license even if they have no physical storefront. The state views any business activity generating income within Delaware as taxable and subject to licensing rules.

For instance, an eCommerce store run from a Delaware home must register for both a state business license and a gross receipts tax account. The same applies to consultants, freelancers, and digital service providers operating within state boundaries.

Delaware’s clear framework for online and remote business licensing provides flexibility while ensuring compliance. Failure to register or pay applicable taxes can lead to fines and the inability to renew your license.

How to Get Your Delaware Business License

Depending on your type of business, you may need the following business licenses in Delaware:

  • General business licenses
  • Tax registrations
  • Health permits
  • State-issued occupational licenses
  • Liquor licenses
  • Lottery licenses
  • Reseller's licenses
  • Zoning and land-use permits

Understandably, many enterprise owners have found that getting the correct business licenses and permits is a time-consuming, difficult, and overwhelming task.

Delaware Business License Renewal

After you have acquired your Delaware state business license and are up and operating, you will want to concentrate on any continuing requirements for working within the state. As an example, most enterprise owners will want a Delaware business license renewal yearly or every three years. This timeframe depends on which license renewal option you select. Take into account that some skilled industries require particular Delaware business license renewals. In case you are contemplating beginning a business in Delaware, you should register your business correctly to prevent legal issues.

Penalties and Consequences for Noncompliance

Operating without a valid Delaware business license is considered a violation of state law and may result in penalties, including monetary fines and suspension of your business’s good standing with the Delaware Secretary of State.

If a business fails to renew its license on time, it may incur late renewal fees and risk losing access to the Division of Revenue’s online filing systems. Continued noncompliance can lead to administrative dissolution or the revocation of foreign entity registration.

The state typically sends renewal reminders electronically and by mail before the expiration date. To stay compliant, business owners should maintain updated contact information with the Division of Revenue and renew their Delaware business license annually or every three years.

Tax Registration

If you open a business in Delaware, you need to apply for and acquire a state tax identification number via the Department of Revenue, in addition to different earnings tax withholding, gross sales tax, and use tax (sellers) permits. You should additionally register with the Department of Revenue to pay your unemployment insurance tax. You may register with the Department of Revenue and discover extra tax info online.

Filing a DBA

In the event you plan to make use of a fictitious name as a substitute for your personal name for your business, you should register a DBA within the county where you will conduct your business. You can use a fictitious name for a sole proprietorship, general partnership, corporation, limited liability partnership, LLC, or nonprofit. Do a search for existing names first before trying to register your chosen fictitious name.

Upcoming Changes to Delaware DBA Registration (Effective June 2025)

Starting June 2, 2025, Delaware will significantly change how businesses register “Doing Business As” (DBA) or trade names. Under the new law, DBA registrations will move from the county-level Prothonotary offices to the Delaware Division of Revenue, creating a centralized statewide system

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This change aims to improve transparency and allow the state to maintain a single searchable database for trade names. Businesses currently operating under a county-registered trade name will need to re-register with the Division of Revenue once the law takes effect.

To prepare for this transition, Delaware business owners should:

  • Review existing DBA filings at the county level.
  • Confirm whether the same trade name is available statewide.
  • Refile their DBA with the Division of Revenue after June 2, 2025.

The updated process will make it easier for businesses to protect brand names and ensure uniform compliance across Delaware.

Frequently Asked Questions

  1. Do I need a Delaware business license if I’m incorporated in Delaware but operate elsewhere?
    Yes. Incorporation alone does not exempt you from licensing. You need a Delaware business license only if your business has operations, sales, or income generated within the state.
  2. How do I renew my Delaware business license?
    Renew through the Delaware Division of Revenue’s online portal or by mail. Renewal notices are typically issued one month before expiration.
  3. What taxes are associated with a Delaware business license?
    Most businesses must pay the Delaware gross receipts tax, calculated as a percentage of total revenue. The rate varies by industry.
  4. Are there new rules for DBA names in Delaware?
    Yes. As of June 2, 2025, DBA registrations will shift to the Division of Revenue from local county offices.
  5. Can an online business operate without a Delaware business license?
    No. Online and home-based businesses in Delaware are required to have a valid Delaware business license and gross receipts registration.

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