The cheapest way to form a Delaware LLC is to file the Certificate of Formation yourself and use a low-cost registered agent service. Total: around $140 for year one.
But there’s a difference between cutting costs and cutting corners. Some parts of the formation are worth doing carefully; some upsells genuinely aren’t necessary. This post tells you which is which.
For a full breakdown of every cost category, see our complete Delaware LLC cost breakdown →
The Non-Negotiable Costs
No matter how you form your Delaware LLC, two costs are fixed:
State filing fee: $90. This is the fee to file your Certificate of Formation with the Delaware Division of Corporations. It’s the same regardless of who files it or how. You can’t avoid it, and no service can negotiate it down.
Registered agent: $50–$300/year. Delaware law requires every LLC to have a registered agent with a physical Delaware address. This is an ongoing annual cost, not optional. The lowest-cost legitimate registered agent services start around $50/year.
Annual franchise tax: $300/year. Starting the year after formation, you owe $300 every June 1. This is a state requirement, not a service fee.
Minimum year 1 cost if you file yourself: $140 ($90 state + $50 registered agent)
Minimum ongoing annual cost: $350 ($300 franchise tax + $50 registered agent)
Everything beyond these is optional, though some optional items matter in practice.
Filing It Yourself: How It Works
The Delaware Division of Corporations accepts direct filings through its online portal at corp.delaware.gov. You don’t need a lawyer or a formation service to file — the state portal is publicly available.
What you’ll need to file:
- Your LLC name (must be unique and include “LLC,” “L.L.C.,” or “Limited Liability Company”)
- Your registered agent’s name and Delaware address
- The name of the person authorizing the filing
The form is straightforward. When you submit, you pay the $90 filing fee by credit card. Delaware processes standard filings within a few business days.
Where people run into trouble filing themselves:
The state portal is functional but not designed for first-time users. The most common issues:
- Name formatting errors — Delaware has specific requirements for how entity designators appear
- Registered agent address entered incorrectly
- Using a name that’s too similar to an existing entity
A rejected filing doesn’t refund the $90 fee. You pay again to refile. For a simple, clean formation, self-filing works. If you’re not detail-oriented about paperwork, one error costs you time and another $90.
What to Skip
These are legitimate services that are commonly upsold but not required to get started:
Operating Agreement drafting (paid service): You need an operating agreement, but Delaware doesn’t require you to file it with the state, and for a single-member LLC, a free or low-cost template is entirely sufficient. Pay for a custom draft only if you have multiple members or a complex structure.
Certified copies of formation documents: The state sends your approved Certificate of Formation when your filing is processed. Certified copies are extra and only needed in specific situations — certain banks, some government applications. Don’t order them preemptively.
Business address / virtual office: Not required for formation. Only worth it if you specifically need a mailing address separate from your registered agent.
Expedited filing: Standard processing takes a few business days. Pay for expedited (same-day at +$100) only if you have a hard deadline. Otherwise, standard is fine.
What Not to Skip
A few things are worth doing correctly even when optimizing for cost:
Get a real registered agent. The $50/year services are legitimate. What you’re looking for is reliability — does the service actually forward legal documents? Do they have customer support? Read reviews. A registered agent that loses a lawsuit summons is far more expensive than $50.
Write an operating agreement. Even a simple one. Banks request it when you open an account, and having it means you’re ready. Free Delaware-specific templates are widely available online.
Get your EIN. Free, from the IRS directly. Don’t pay a third party to get your EIN for you if you’re a US resident — the IRS online process takes 10 minutes.
Formation Services: What You’re Actually Paying For
Formation services charge $150–$300+ above the state fee. That price buys you:
- A review of your filing details before submission (catching name and address errors)
- Handling the state portal process on your behalf
- Operating agreement templates tailored to your filing details
- EIN application assistance
- Registered agent service bundled in
For founders who want the formation done correctly without spending time learning state portals, this is a reasonable trade. For founders who are comfortable with paperwork and have a straightforward situation, self-filing saves $150–$300.
The honest calculus: if you’ve never navigated the Delaware Division of Corporations portal before and you value your time at more than $30/hour, a formation service is probably worth it.
Forming from Outside the US?
For non-US residents, self-filing is harder in practice because the EIN step can’t be done online. Non-residents must apply by phone, fax, or mail — and navigating that process for the first time adds meaningful friction. Formation services that specialize in non-resident formation handle the EIN alongside the filing, which removes one of the more complicated steps.
The state filing fee is the same regardless of where you’re based. The registered agent and franchise tax costs are identical. The difference is in the EIN process and, for some founders, the need for additional guidance through the banking setup.
The Real Minimum Cost Summary
|
What you’re minimizing |
Year 1 |
Year 2+ |
|
US resident, self-filing |
$140 |
$350 |
|
US resident, with service |
$290–$500 |
$350 |
|
Non-resident, with service |
$340–$600 |
$350 |
The $350/year floor doesn’t change regardless of how you form. The franchise tax and registered agent are fixed costs of keeping a Delaware LLC active.
Frequently Asked Questions
What is the absolute minimum cost to form a Delaware LLC?
$140 for a US resident filing directly — $90 state fee plus a $50/year registered agent. This assumes the EIN is obtained free through the IRS online portal and no formation service is used.
Can I form a Delaware LLC for free?
No. The $90 state filing fee is mandatory and cannot be waived. There are no free formation options for a legitimate Delaware LLC.
Is it worth using a formation service?
For US residents with a simple, single-member LLC: self-filing is straightforward if you’re detail-oriented. For non-residents or multi-member LLCs, a service reduces error risk and handles the EIN process, which is worth the fee for most founders.
Are cheap formation services legitimate?
Some are, some aren’t. Look beyond the headline price to the registered agent renewal cost, what’s actually included, and whether there’s real support if something goes wrong.
Can I change formation services later?
You can switch registered agents at any time by filing a Certificate of Change with Delaware. Formation is a one-time event — once your LLC is formed, who handled it is irrelevant.
Bottom Line
The cheapest legitimate path is $140 for year one: file the Certificate of Formation yourself at corp.delaware.gov for $90 and add a $50/year registered agent. Write your own operating agreement from a free template. Get your EIN free from the IRS.
What that approach requires: attention to detail on the filing, willingness to learn the state portal, and time to handle each step yourself.
If you’d rather pay a modest fee to have it handled correctly — name check, filing, EIN, registered agent — without navigating three different government portals, that’s exactly what IncReg does →
Questions about Delaware LLC formation costs? [Reach out directly](https://increg.com/contact/) — you’ll get a straight answer from someone who handles this every day.
This article is for informational purposes only and does not constitute legal or tax advice. Consult a qualified attorney or tax professional for advice specific to your situation.