How Much Does a Business License Cost in Delaware?

In addition to filling out the correct documents when you form an LLC in Delaware, you must also think about the cost of a Delaware business license. Startup fees add up quickly, so knowing these expenses beforehand can help you plan better financially and start your new venture on the right footing.

With that in mind, let’s break down the business license costs and what it takes to start a new company in the Diamond State.

Do you need a business license in Delaware?

Yes, all businesses operating in Delaware must obtain a general business license from the Delaware Division of Revenue. However, some businesses, such as professional services, must get additional licensing before they can take on clients.

One unique aspect of Delaware’s business licensing requirements is that the state doesn’t charge sales tax, so retailers don’t need a sales tax permit or seller’s permit. Instead, a general business license should be enough to sell products.

How much does a business license cost in Delaware?

Broadly speaking, most businesses in Delaware must pay a $75 license fee for a single location and another $25 for each additional location. That said, there are multiple business types that must pay a different amount, as listed in the Delaware code regarding Occupational and Business Licenses and Taxes. Some notable exceptions to the $75 cost include:

• Hotels and Motels – $25 per room, and hotels must pay $30 for each suite.
• Finance or Small Loan Agency – $450
• Outdoor Music Festival Promoter – $750
• Taxicab or Bus Operator – $45 for the first vehicle and $30 for each additional vehicle
• Travel Agency – $225

In addition to a general business license, certain counties and cities in Delaware have their own licensing requirements and fees. For example, in Wilmington, all businesses must obtain a license with the city, and the cost depends on the type of business. Fees vary by business category, so check the City of Wilmington’s current fee schedule.

Finally, Delaware requires businesses to renew their licenses annually. The fees are the same, so if you paid $75 for your original license, you’ll also pay $75 for the renewal. You can renew for three years at once by paying three times the annual fee (there’s no discount). Doing so locks in the fee in effect when you renew.

Types of business licenses in Delaware and their costs

Depending on where your business is located in Delaware, you may have to obtain different types of licenses. Here’s a quick overview of each:

City licenses

Various cities in Delaware require businesses to obtain licensure, and the costs can vary from one city to the next. For example, in Wilmington, the cost depends on the type of business you have. In other towns, fees are set differently.

County licenses

Delaware only has three counties in the entire state: Kent, New Castle, and Sussex. These counties license some activities, such as contractors, so check your county’s website to see what applies to your business.

State licenses

All businesses must obtain a general business license to operate in Delaware. Typically, you’ll need this license first before you can file paperwork for city and county-level licenses. Also, keep in mind that you may have to register your business with different divisions, such as the Division of Corporations, the Division of Professional Regulations, the Division of Unemployment Insurance and the Office of Workers Compensation.

Federal licenses

Most businesses won’t need a federal business license to operate in Delaware. However, some notable exceptions include:

• Firearms – Must get a license from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
• Alcohol Sales, Import, and Manufacture – A license from the Alcohol and Tobacco Tax and Trade Bureau.
• Maritime Transportation – A license from the Federal Maritime Commission.
• Agriculture – A license from the U.S. Department of Agriculture.
• Aviation – A license from the Federal Aviation Administration.

For city and county-level licenses, the First Steps page on the Delaware.gov website provides links to each licensing page. Here, you can see which cities have business license requirements (e.g., Bethany Beach) and apply for them online.

For state-level license costs, refer to the Delaware Code Online website. It outlines which industries must pay a different amount from the usual $75.

For federal licensing, the Small Business Administration website can provide more details. Some federal licenses, like the Alcohol and Tobacco Tax and Trade Bureau Permit, don’t cost anything. For others, like a Federal Firearms License, fees depend on the license type.

Examples of different industries and the licenses they require

Generally, professional service businesses are required to obtain a license in addition to a general Delaware business license. Some common examples of professional services include:

• Accountants
• Architects
• Chiropractors
• Deadly Weapons Dealers
• Dentists
• HVAC
• Massage and Bodywork
• Nursing
• Plumbing
• Salons and Shops
• Veterinary Medicine

Each license has its own requirements and permitting costs, set by the relevant board of the Delaware Division of Professional Regulation. Check your board’s page for current fees.

If you’re trying to start a professional service business, you must familiarize yourself with the licensing requirements and fees. In many cases, you must pass a test or provide proof of hours worked within the field. Additionally, various businesses must also abide by different Delaware rules and regulations, so you should familiarize yourself with these guidelines as well before obtaining a license.

Renewing your business license in Delaware

All general business licenses expire on December 31st and must be renewed by that date. Professional licenses may have different expiration dates. For example, HVAC licenses expire on October 31st of even years.

To renew state business licenses, log into your One Stop Business Licensing Portal. For professional licenses, you must create an account with the Delaware Division of Professional Regulation (DELPROS). In either case, you can renew your license online and keep it in good standing.

Late renewals incur penalties and interest. Operating without a license can mean fines of up to $3,000 (30 Del. C. § 2119).

For many professional licenses, the license expires as soon as the date passes. It is illegal to conduct professional business in Delaware with an expired license. Different permits have different late fees and penalties, so check with the Division of Professional Regulation website and your DELPROS account.

Get help starting your business in Delaware

Starting a business in Delaware doesn’t have to be a complicated and time-consuming ordeal. If you want to stay focused on running your business and working with your customers, you can get help with all the paperwork and other back-end details to ensure your company is compliant.

Let us assist you with licensing, permitting, and other bureaucratic details so you can focus on what’s most important to you. From filing documents to acting as a registered agent to helping you understand how to set up a Delaware LLC, we can handle it all.

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