Delaware LLC Cost: What You Pay Year 1 and Year 2

What does a Delaware LLC cost in year 1?

The total year-1 cost of a Delaware LLC with DelawareLLC.co is $397, paid once, all-inclusive. There is no separate “state fee” line added at checkout and no tiered package that unlocks the features you actually need. The single $397 already covers the mandatory $110 Delaware Certificate of Formation filing fee that the state charges every new LLC, so you are not paying $397 plus the state fee—the state fee is inside the $397.

Here is what the $397 includes, with the real cost of each piece if you bought it separately:

• Certificate of Formation filing — the $110 Delaware state fee plus the work of filing it correctly the first time.
• Registered agent for year 1 — legally required in Delaware; normally ~$99/year on its own.
• EIN application — your federal tax ID from the IRS, including the process for applicants without a US SSN (2–4 weeks).
• Operating agreement — the internal document banks and partners ask for.
• US bank account help — guided applications to Mercury, Relay, or Wise.
• Stripe approval support — help getting your payment processor live.
• Compliance tracking and WhatsApp support — a specialist who reminds you about the June 1 franchise tax and Form 5472 deadlines.

The filing itself is completed in 48 hours, and both the filing and the EIN are backed by a money-back guarantee. If you want the long-form version of every cost line, see our dedicated Delaware LLC cost breakdown, and if you want to watch the process step by step, see how it works.

How is the $397 broken down line by line?

It helps to see the $397 split into its parts so you can compare it honestly against any other quote. The single largest fixed component is Delaware’s own fee; the rest is the work and the year-one services that most founders would otherwise have to assemble from three or four separate vendors. The figures below for standalone alternatives are approximate market ranges, not our charges—our price is the flat $397 regardless.

The point of the table is not to claim the parts always add to an exact number—different providers price differently—but to show that the flat $397 sits at or below the typical sum once the $110 state fee, a registered agent, an EIN service, and an operating agreement are all counted. If a competitor’s headline price looks lower, the honest comparison is to add their state fee, their registered agent, and their EIN charge before you decide. For the entity-level cost detail, the full cost breakdown walks through every figure.

What does a Delaware LLC cost in year 2 and every year after?

This is the number most formation services hide, and it is the single most common reason founders get an unwelcome surprise. From year 2 onward, keeping a Delaware LLC active costs about $399 a year, made up of two predictable items:

• $300 Delaware franchise tax — a flat annual state fee, the same whether your LLC earned $0 or $10 million, due by June 1. See the full Delaware franchise tax guide for how to pay it and what happens if you miss the deadline.
• ~$99 registered agent renewal — Delaware law requires a registered agent with a physical in-state address every year, so this continues after the first year is up.

Delaware LLCs do not file an annual report, so there is no $50 report fee like Delaware corporations pay. That keeps the ongoing math simple: $300 + ~$99 = roughly $399 per year, plus whatever federal filings your specific situation requires (for example, foreign-owned single-member LLCs file Form 5472, where the penalty for not filing is $25,000). Compare that with a Delaware C-Corp, whose franchise tax starts at a $175 minimum and rises with authorized shares, and you can see why the LLC’s flat structure is so predictable.

Year 1 vs Year 2: the full cost picture

An LLC formed in 2026 makes its first $300 franchise tax payment by June 1, 2027—you do not pay it in your first year. That is why year 1 is a clean $397 and year 2 is where the recurring ~$399 begins.

What is the total cost of ownership over three years?

Founders comparing services often look only at the sticker price for year 1, which is exactly how hidden year-2 renewals catch people out. The more useful number is multi-year cost of ownership: what you will actually spend to keep the LLC alive and in good standing across the first few years. With DelawareLLC.co there are no escalating platform fees, so the multi-year math is simply year 1 plus the flat recurring amount each year after.

So a Delaware LLC kept active for three full years costs roughly $1,195 in formation, state franchise tax, and registered agent fees combined. Federal filings such as Form 5472 (for foreign-owned single-member LLCs) sit on top of that and depend on your situation, not on us. The figure is deliberately predictable: because the franchise tax is flat at $300 and the agent renewal is roughly $99, you can budget years ahead without guessing. For founders weighing other states, our Delaware vs Wyoming comparison shows how those multi-year totals shift.

Why isn’t a Delaware LLC free?

Some services advertise “$0 LLC formation,” but a Delaware LLC can never truly be free, for two reasons that are written into state law. First, Delaware charges a mandatory $110 Certificate of Formation fee on every new LLC— no provider can waive a government fee. Second, Delaware requires a registered agent with a physical address in the state, and that is a paid service.

When a provider says formation is “free,” they are almost always recovering the cost through an expensive registered agent renewal (sometimes $125–$300/year) or by selling add-ons you assumed were included. DelawareLLC.co takes the opposite approach: one transparent $397 that covers the state fee and the real work, then a clearly disclosed ~$99 registered agent renewal afterward. You can confirm any of this with a specialist before paying anything—see the frequently asked questions or message us directly.

What does DIY formation actually cost, end to end?

A common objection is, “Can’t I just file it myself and skip the service fee?” You can—Delaware lets anyone file a Certificate of Formation—but the honest cost of doing it yourself is rarely just the $110 state fee. Once you add the pieces a working business actually needs, the DIY route usually lands close to the service price, minus the help and minus the safety net.

The math is the point: the gap between a careful DIY filing and the flat $397 is often small, and it disappears entirely once you value the time spent on the EIN paperwork (especially without an SSN), the bank application, and Stripe approval. DIY makes sense if you already have a US SSN, a registered agent, and banking sorted, and you only need the filing. For most international founders, the service exists precisely because those steps are where formations stall. The how-it-works page shows where a specialist steps in on each one.

How does $397 compare to Stripe Atlas and Firstbase?

The big self-service platforms cluster around $500–$510 to form an LLC, and they layer on ongoing fees after year one. DelawareLLC.co is a flat $397 all-inclusive, and the real difference is how much help you get with the parts that actually block international founders—opening a US bank account and getting approved on Stripe.

Both Stripe Atlas and Firstbase are legitimate services—Atlas in particular suits tech founders raising from US VCs who prefer software over conversation. DelawareLLC.co is the better fit if you are an international founder who wants a person guiding you through banking, Stripe, and compliance. If you are still deciding between a Delaware LLC and another state, our Delaware LLC overview explains who Delaware is actually right for.

Are there optional add-ons, and what do they cost?

The $397 is the whole formation package; there is no required add-on to “unlock” a feature. What can sit alongside it are genuinely optional, situation-specific services that not everyone needs—and we would rather name them honestly than bury them. None of these are charged unless you ask for them.

• Federal tax filing help — if you are a foreign-owned single-member LLC, you must file Form 5472 with a pro-forma 1120 each year; some founders handle this with their own accountant, others ask for help. It is separate from formation because it recurs annually and depends on your facts.
• ITIN application — only some founders need an Individual Taxpayer Identification Number; if you do, our sister site itin.so handles it.
• Expedited or specialized EIN paths — the standard EIN application is already included; sister site ein.so exists for edge cases.
• Registered agent renewal — the year-1 agent is included; the ~$99 renewal in year 2 keeps your specialist support active but is not a surprise charge.

The principle is simple: formation is one flat price, and anything that recurs or only applies to some founders is disclosed separately so the $397 never quietly becomes something larger.

How does the money-back guarantee work in practice?

The guarantee is scoped to the two things we directly control: filing your Certificate of Formation and submitting your EIN application. If we cannot complete the filing with Delaware, or cannot get your EIN application submitted to the IRS, you are refunded—that is the promise that lets you commit before everything is finished.

What the guarantee does not do is override third parties or government timelines, and it is fair to say so plainly. The IRS sets its own pace, so EIN issuance for applicants without a US SSN can take 2–4 weeks—that wait is normal, not a failure. Likewise, whether a specific bank like Mercury approves your account, or whether Stripe activates your account, depends on their underwriting, not ours; we guide and improve your odds but cannot guarantee another company’s decision. The guarantee protects you against us not delivering the filing and EIN, which is exactly the part you are paying us for. If anything is unclear before you pay, ask on the contact page first.

What is and isn’t included in the price?

To keep pricing honest, here is the clean line between what your $397 covers and what Delaware or the IRS charges directly:

• Included in $397: state filing fee, formation, year-1 registered agent, EIN, operating agreement, bank and Stripe help, compliance reminders, WhatsApp support.
• Paid later, directly to the state: the $300 franchise tax each June 1 starting year 2.
• Paid later, to keep the LLC active: ~$99 registered agent renewal each year after year 1.
• Depends on your situation: federal tax filings such as Form 5472 for foreign-owned single-member LLCs, or your own income tax obligations.

That structure means there is no “gotcha” renewal: the only recurring costs are the state’s own franchise tax and a registered agent fee that every Delaware LLC must pay regardless of who forms it.

How much does a Delaware corporation cost by comparison?

Pricing is one of the clearest reasons most non-resident founders choose an LLC over a corporation. A Delaware LLC’s ongoing state cost is a flat $300 franchise tax with no annual report. A Delaware corporation is structured differently and usually costs more to maintain, which surprises founders who assumed a “corp” and an “LLC” carry similar fees.

For a corporation, the franchise tax is the lower of two methods: the Authorized Shares Method (a $175 minimum, rising as you authorize more shares) or the Assumed Par Value Method (a $400 minimum), capped at $200,000—plus the separate $50 annual report. By contrast, the LLC stays at $300 no matter how the business grows. Unless you specifically need a C-Corp—typically to raise from US venture capital—the LLC is both cheaper and simpler to keep compliant. Read the Delaware C-Corp guide if you think a corporation may fit your fundraising plans.

Who is the $397 price right for—and who might pay differently?

The flat $397 is built for the founder it is designed around: an international entrepreneur who needs a US Delaware LLC, an EIN, a US bank account, and Stripe—done correctly, with a real person to ask questions. If that is you, the all-inclusive price is the simplest path, and the predictable ~$399 in later years means no renewal shock.

A few people will spend differently, and it is worth being candid about it. If you already hold a US SSN, have your own registered agent, and only need the bare Certificate of Formation, a careful DIY filing can be cheaper—you would mainly be paying the $110 state fee. If you are raising from US venture investors, you may need a Delaware C-Corp rather than an LLC, which changes the ongoing cost picture entirely. And if your business has no US nexus at all, it is worth confirming Delaware is the right jurisdiction before paying for any formation—our Delaware LLC overview and Delaware vs Wyoming comparison help you check that fit first. For most non-resident founders who want it handled end to end, $397 is the number.

What about BOI / FinCEN reporting—does it add a cost?

Many founders ask whether beneficial ownership information (BOI) reporting to FinCEN adds a fee. The honest answer is that this area is evolving and you should confirm the current requirement directly with FinCEN before relying on any summary. As of a March 2025 FinCEN interim final rule, BOI reporting was removed for US domestic reporting companies, and US persons were treated as exempt; under that interim rule, generally only certain “foreign reporting companies” were expected to report. Because rules like this can change, we do not bake a BOI fee into the $397, and we tell founders to verify the live FinCEN status rather than assume.

Practically, this means your formation price is unaffected by BOI either way: the $397 covers formation, EIN, registered agent (year 1), operating agreement, and bank and Stripe help, and your ongoing ~$399 covers the state franchise tax and agent renewal. If a BOI obligation applies to your specific entity under current FinCEN guidance, your specialist will flag it—but it is not a hidden line item in our pricing. For background on related federal filings, the FAQ and how-it-works pages go deeper.

Ready to move forward?

You do not have to pay before you talk to anyone. Message a specialist, confirm that $397 covers your country and business model, and get a payment link only when you are ready. When you are, the filing is done in 48 hours and the EIN application follows. For the deeper details, read how the process works, the full cost breakdown, the franchise tax guide, the Delaware LLC overview, the C-Corp comparison, or the FAQ.