Delaware Business License: Everything to Know
To get a Delaware business license, you have to apply to the State of Delaware Department of Revenue.4 min read
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.
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.
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:
Department of Revenue
Carvel State Office Building
820 North French Street
Wilmington, DE 19801
Department of Revenue
Thomas Collins Building
540 South Dupont Highway, STE 2
Dover, DE 19901
Department of Revenue
422 North Dupont Highway STE 2
Georgetown, DE 19947
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.
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.
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.
To get help setting up your Delaware business license, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.