How to Get a Delaware Business License

Do you need a business license in Delaware?

Depending on the kind of business you operate, you may need to obtain local, state, or federal business licenses.

State of Delaware business license

Most businesses in Delaware, including companies that conduct business outside the state, must obtain a business license from the Delaware Division of Revenue at the time business commences. You can do this through Delaware's OneStop site.

Certain professionals—like medical professionals, real estate agents, and estheticians—are also required to have a professional license from the Division of Professional Regulation. This license establishes that a person or business meets the requirements to provide services in their practice area.

Local business licenses in Delaware

Aside from a state-level license, you may also need a local license, depending on your business location. Delaware cities and counties issue local business licenses. You may also need to meet city or county sales tax permit requirements and Delaware tax permit requirements.

You can find a local government list with counties and cities that may require licenses or permits through Delaware's FirstSteps or visit your area's municipal website to make sure you meet the necessary requirements.

You may need multiple licenses for your business depending on your industry and the type of business you operate. Check with your local city hall or county clerk for licensing requirements in your business location.

Federal business licenses

Business activities regulated by a federal agency need a federal license or permit to operate, including those involving alcohol, firearms, ammunition, broadcasting, agriculture, aviation, mining and drilling, nuclear energy, transportation and logistics, and fisheries and wildlife. Fees and requirements for registration depend on the business activity and issuing agency.

How to get a Delaware business license in 5 steps

Obtaining business licenses in the state of Delaware involves several steps, but it’s absolutely necessary to ensure your business is legally compliant at the state, local, and federal levels. Follow these steps:

Step 1: Start your business in the State of Delaware

Before applying for a Delaware business license, solidify your business structure—is it a corporation, LLC, partnership, or sole proprietorship? Corporations, LLCs, and partnerships must register their business with the Delaware Division of Corporations. Registration is not necessary for sole proprietors unless you are using a trade name or have employees.

Once you've decided on your structure, choose your business name. Make sure it complies with Delaware's naming rules and is unique enough to stand out in a crowded market. Businesses operating in the state can check name availability through the Delaware Division of Corporations. If you plan to hire employees, you'll be required to register for workers compensation insurance through the Delaware Office of Workers' Compensation and unemployment insurance through the Delaware Division of Unemployment Insurance.

Step 2: Obtain an EIN

An employer identification number (EIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) for the purposes of identification. A company needs an EIN for employee payroll. It may also need one for filing federal tax returns, establishing a loan or line of credit, opening a business bank account, or getting a business credit card. An EIN is free—an entity conducting business in Delaware can apply online through the IRS website, by fax number, or by mail.

Step 3: Apply for a state business license

Apply for a state business license through the Delaware Department of Revenue's One Stop online system, which provides applicants with a customized list of required endorsements and fees. To apply, you'll need to create an account, fill in your information, and follow the prompts. To apply for a professional license, visit the Delaware Division of Professional Regulation.

Step 4: Apply for any local licenses or permits

Contact your local municipality to determine if you need one or more licenses or permits to run your business. You may also wish to check with your local Small Business Administration (SBA) office, your local Chamber of Commerce, or your city or county government for additional information about requirements, forms, and fees.

Step 5: Apply for federal licenses as necessary

If your business is regulated by a federal agency, you'll need a federal license or permit to operate in Delaware. The fees and requirements for a federal business license differ by agency and business activity.

After getting your Delaware business license

After receiving your Delaware business license, display it prominently at your business location—this is required by law. To stay compliant with government requirements, continue to follow local regulations, such as zoning and permits, and make sure you renew your license as necessary and update it if your business moves or changes its structure.

Getting a Delaware business license the easy way

You can do the legwork yourself, but you can also fast-track the business license process through LegalZoom's business license report and management service. We will help you find out which business licenses, permits, and registrations you’ll need and give you direct access to the applications—plus, we’ll remind you when you’re due for a renewal. Our customized services will take care of the licensing logistics so you can operate your business legally and effortlessly in the state of Delaware.

FAQs

What should I do before getting a new business license?

If you’re registering as a formal business with the state—for example, an LLC or corporation—you will need to first file your formation paperwork and check with the Delaware Division of Corporations for licensing requirements for new companies. Once you fulfill those requirements, you can apply for a business license. Research which licenses you’ll need based on your location and business activity. Visit the DE First Steps website for more info.

How much is a business license in Delaware?

The fee for a Delaware business license is typically $75 for its first location. Delaware requires individual licenses for separate business activities. Seniors who are 65 years old or older on or before January 1 of the current license year may be eligible to receive a 75% discount on annual fees. Federal and local licenses may have additional fees.

How long does it take to get a business license in Delaware?

Most businesses in Delaware will receive their license within a month of registering their business with the Delaware Division of Revenue. A company that obtains a license or license renewal through Delaware's One Stop Business Licensing and Registration Service can print a temporary copy after completing the process. A temporary license is valid for up to 60 days; however, licenses are usually sent within 10 working days.

How long does a Delaware business license last?

Delaware business licenses are typically good for one year and expire on December 31. You can also get a three-year business license in the state of Delaware, which expires on December 31 of the third year.

After the first year of licensure, a business can opt for a three-year license, but it is not required. However, its cost is not discounted. You will pay the same amount for a three-year license as you would for three separate one-year licenses, but you may benefit from not having to worry about renewing your license for a longer period.

Can I transfer my Delaware business license to a new owner?

A company cannot transfer its business license to another owner. New owners must apply for a new business license. Businesses must communicate ownership or legal entity changes to the Delaware Division of Revenue.