Getting a business license in Delaware means registering with the Division of Revenue, which is a separate step from forming your limited liability company (LLC) or corporation with the Division of Corporations. Many businesses choose Delaware as their legal home while operating elsewhere, but not all need a Delaware business license. Licensing requirements typically depend on where and how your business operates.
Below, we discuss how to get a business license in Delaware, which licenses and permits different industries require, and how the renewal timeline works.
Key takeaways
The Division of Revenue issues Delaware’s business license. The licensing process is separate from forming a limited liability company (LLC) or corporation with the Division of Corporations.
Delaware has no state sales tax, so businesses aren’t required to obtain a seller’s permit the way they would in other states.
Business licenses expire on December 31 each year regardless of the initial registration date, unless you purchased a multiyear license.
What is a business license in Delaware?
In Delaware, a business license is a specific state-level license issued by the Division of Revenue. It’s required for almost anyone conducting business within Delaware since it’s the state’s main way of tracking and taxing commercial activity.
What types of business licenses and permits do you need in Delaware?
Businesses in Delaware generally need some combination of licenses, depending on their structure, industry, and location.
The types include:
State business license: This is required for nearly every business entity type that conducts business activity in Delaware. It covers your general right to operate and feeds directly into the state’s gross receipts tax reporting.
Occupational licenses: Contractors, cosmetologists, real estate agents, healthcare providers, accountants, and other regulated trades must obtain a license from the Division of Professional Regulation. Requirements vary by board. Some require exams or continuing education, while others require just an application and fee.
City business licenses: Cities such as Wilmington and Newark require their own local business license in addition to the state’s. But many smaller Delaware towns skip this.
Federal licenses: If you’re in a federally regulated industry, such as firearms, alcohol, transportation, or broadcasting, you’ll have to obtain the relevant license from the appropriate federal agency, independent of anything Delaware requires.
Delaware has no state sales tax, so there’s no sales-tax-permit step.
How do you get a business license in Delaware?
To get a Delaware business license, apply through Delaware One Stop, the state’s combined online registration portal. The site handles your Division of Revenue business license application, your Division of Unemployment Insurance registration if you’ll have employees, and workers’ compensation coverage, all in one session.
If you’re creating an LLC or a corporation, first file formation documents with the Delaware Division of Corporations. If you plan to operate under another name, you’ll also file for a trade name. You’ll then apply for an Employer Identification Number (EIN) with the Internal Revenue Service (IRS). This is free and usually issued the same day online. Some banks and license applications will ask for your EIN before you can move forward, so get it early. Sole proprietorships operating under the owner’s legal name don’t need to file this paperwork.
You might also need occupational or city licenses before starting operations. These operate outside of the One Stop process. If your trade requires a Division of Professional Regulation license, that carries its own timeline, especially if it involves an exam or background check. If you’re operating in Wilmington, Newark, or another municipality with its own requirements, you’ll file directly with the city.
A formation service such as Stripe Atlas can handle entity setup, EIN application, and initial registration paperwork in one flow. With Atlas, you’ll be incorporated within two business days and ready to bank and accept customer payments.
How much does a business license cost in Delaware?
Delaware’s base state license has a flat fee, but the total cost depends on your business type and whether occupational or city licensing applies. These figures change by classification, so confirm current fees through the Division of Revenue and local officials.
|
License type |
Typical fee range |
Renewal frequency |
|
State business license |
$75 per location |
Annual, or prepaid for 2–3 years |
|
City business license |
Varies by city and business type |
Annual |
|
Division of Professional Regulation license |
$40–$1,200, depending on the |
Typically every 1–2 years, depending on the board |
Most licenses are pro-rated for the first year of activity. Contact the Division of Revenue’s Public Service Offices for specific license fees.
How do you renew your business license in Delaware?
Delaware business licenses run on a calendar-year basis. Unless you bought a multiyear license, yours expires on December 31. Everyone renews on the same schedule, regardless of when they began operating.
The Division of Revenue typically sends renewal notices, but it’s best to set a personal reminder. Operating with an expired license can bring penalties and interest. You can renew through Delaware One Stop or directly through the Division of Revenue’s online system.
If you hold occupational or city licenses, check their renewal cycles separately. Division of Professional Regulation (DPR) licenses often follow a different schedule than the state business license, and local renewals follow whatever calendar that municipality sets.
What are common licensing considerations and mistakes in Delaware?
Delaware is a common state for incorporation for legal and tax reasons, so businesses incorporated here but operating elsewhere can make common mistakes. If your business operates entirely out of state, you likely need a business license where you actually operate, not in Delaware.
Delaware’s lack of sales tax can also be confusing. New business owners still have state tax obligations through Delaware’s gross receipts tax, which typically applies to business revenue earned locally. That’s tied directly to the licensing process.
Business owners must also know that city requirements aren’t uniform across the state. Certain Delaware municipalities license businesses locally, and owners moving between towns can end up under completely distinct local rules. Confirm the applicable licensing requirements rather than assuming the rest of the state works the way your last location did.
How Stripe Atlas can help
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FAQs about getting a business license in Delaware
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accurateness, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent attorney or accountant licensed to practice in your jurisdiction for advice on your particular situation.