StructureCost2026

Delaware: what each business structure costs a year

At $100,000 profit, an S corporation costs $4,269 a year less than a sole proprietorship in Delaware. All figures are 2026 tax and fees.

$4,269 a year

less as an S corporation than as a sole proprietorship in Delaware, at these numbers.

More settings revenue, salary, filing status, payroll costs, PTET

Delaware, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $27,315 $0
Itemized: $27,315
Delaware business licenserevenuefiles.delaware.gov, checked Oct 23, 2026$75
Self-employment taxirs.gov, 2026 rates$14,119
Federal income taxirs.gov, 2026 rates$8,223
State income taxrevenuefiles.delaware.gov, checked Oct 23, 2026$4,898
Yearly cost$27,315
Single-member LLC $27,568 +$253 $110
Itemized: $27,568
Delaware annual LLC taxcorp.delaware.gov, checked Oct 23, 2026$400
Delaware business licenserevenuefiles.delaware.gov, checked Oct 23, 2026$75
Self-employment taxirs.gov, 2026 rates$14,062
Federal income taxirs.gov, 2026 rates$8,157
State income taxrevenuefiles.delaware.gov, checked Oct 23, 2026$4,874
Yearly cost$27,568
LLC taxed as an S corp $23,179 −$4,136 $110
Itemized: $23,179
Payroll tax on your salaryirs.gov, 2026 rates$6,352
Payroll service and tax return (estimate)$1,800
Delaware annual LLC taxcorp.delaware.gov, checked Oct 23, 2026$400
Delaware business licenserevenuefiles.delaware.gov, checked Oct 23, 2026$75
Federal income taxirs.gov, 2026 rates$9,550
State income taxrevenuefiles.delaware.gov, checked Oct 23, 2026$5,002
Yearly cost$23,179
S corporation lowest $23,046 −$4,269 $109
Itemized: $23,046
Annual Franchise Tax Reportcorp.delaware.gov, checked Oct 23, 2026$50
Payroll tax on your salaryirs.gov, 2026 rates$6,352
Payroll service and tax return (estimate)$1,800
Delaware corporate franchise tax (minimum)corp.delaware.gov, checked Oct 23, 2026$175
Delaware business licenserevenuefiles.delaware.gov, checked Oct 23, 2026$75
Federal income taxirs.gov, 2026 rates$9,581
State income taxrevenuefiles.delaware.gov, checked Oct 23, 2026$5,013
Yearly cost$23,046
C corporation $32,491 +$5,176 $109
Itemized: $32,491
Annual Franchise Tax Reportcorp.delaware.gov, checked Oct 23, 2026$50
Payroll tax on your salaryirs.gov, 2026 rates$6,352
Payroll service and tax return (estimate)$2,000
Delaware corporate franchise tax (minimum)corp.delaware.gov, checked Oct 23, 2026$175
Delaware business licenserevenuefiles.delaware.gov, checked Oct 23, 2026$75
State corporate income taxrevenue.delaware.gov, checked Oct 23, 2026$4,734
Federal corporate income tax (21%)irs.gov, 2026 rates$10,432
Federal income taxirs.gov, 2026 rates$4,674
State income taxrevenuefiles.delaware.gov, checked Oct 23, 2026$3,999
Yearly cost$32,491
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Delaware

Electing S corp tax treatment for an LLC starts to pay in Delaware at about $50,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

Delaware has no pass-through entity tax electionassets.ctfassets.net.

ProfitSole propLLCLLC as S corpC corp
$30,000$6,218$6,513$7,968$8,290
$50,000$11,798$12,086$11,918$14,477
$75,000$18,918$19,200$15,778$22,445
$100,000$27,315$27,568$23,179$32,491
$150,000$45,625$45,878$38,939$54,640
$200,000$64,521$64,783$55,465$75,975
$300,000$108,807$108,944$90,914$119,849

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Delaware

LLCCorporation
Filing to form$110Certificate of Formation$109Certificate of Incorporationcorpfiles.delaware.gov
Yearly reportNo yearly report feeAnnual Franchise Tax Report, $50 a yearcorp.delaware.gov
Report dueAnnual LLC tax due June 1 for the prior yearMarch 1 for the prior year
Delaware annual LLC tax$400yesnocorp.delaware.gov
Delaware corporate franchise tax (minimum)$175noyescorp.delaware.gov
Delaware business license$75yesyesrevenuefiles.delaware.gov
Delaware gross receipts tax (services rate)0.398% of gross receiptsyesyesdelcode.delaware.gov

Not in the calculator: Wilmington charges a 1.25% earned income tax on wages and net profits of residents and of people working in the city, plus a monthly employer head tax per employee. Some towns require their own business licenses.

Switching calculators for Delaware

By profession in Delaware

Questions

Is an S corp worth it in Delaware?

On these figures, from about $50,000 of profit. At $100,000 an LLC taxed as an S corp costs $23,179 a year against $27,568 for a plain LLC, $4,389 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Delaware?

The state charges no yearly report fee. LLCs can also owe Delaware annual LLC tax and Delaware business license and Delaware gross receipts tax (services rate). Forming one costs $110.

Does Delaware recognise the S corp election?

Yes. The federal election carries over with no separate state form. Federal S election applies. The S corporation must pay estimated tax for nonresident shareholders.

What income tax does Delaware charge?

Delaware taxes personal income in 7 brackets, from 0% to 6.6% (2026, single filer). C corporations pay 8.7% of net income.

How this page models Delaware (1)

Sources checked 2026-10-23. Each figure links to the state or IRS page it comes from.

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