Delaware Business License Fee
Delaware Business License Fee
If you are planning to start a new business in Delaware then there are several aspects of the business formation and operation you will have to consider. One of the most important aspects is applying for and obtaining a business license in Delaware. A business license is defined as a legal document, which will grant you the right to operate your business within a state, city or county. The rules and regulations for a business license or permit can vary from one state to another and is also different for different types of business activity. Hence, we have created this guide to provide information on how to obtain a Delaware business license along with information on annual state business licenses, business license fee etc.
Delaware Business License
Once you form a business, you have to make it operational and for that you will need to obtain a business license in Delaware. Delaware law states that every business, both Delaware and non-Delaware is required to obtain an annual state business license. You may also require additional state licenses or permits depending on the type of business activity you may have. You may also need to apply for and obtain Delaware business license if your business qualifies under any of the mentioned state regulated industries. The business licensing aspect of regulated industries is managed and licenses or permits are issued by state agencies like the Division of Public Health issues food establishment licenses and permits.
Some of the regulated industries include:
- Agriculture
- Contractors, Building, Construction
- Food Establishments
- Alcohol
- Automobile
- Banking
- Child Care
- Boating
- Environmental Protection
- Manufacturing
- Health
- Lottery or Gaming
Apart from the state business license, you may also need to apply for and obtain Delaware business license and permits in the county or city that your business is located in. For example: If you start a business in New Castle County, Delaware and it is situated within the city limits then you will be required to obtain a City of New Castle Business License. The Delaware business license fees for operating in the City of New Castle will take into account the number of employees including the owner.
Delaware small business information
If you are planning to start a small business in Delaware then you will need to register it as well as obtain a business license in Delaware. As a startup or an entrepreneur, you will also require information and resources that will help you strengthen your business and help it to grow. Where can you get such information? One of the best places to search for informational resources is the “Business Resource Connection” of the Delaware Division of Small Business. This agency is a part of the Delaware Department of State that is focused and committed towards supporting new businesses in their path towards achieving growth and sustainability through approximately 300 business-focused programs. You can search using location, specific need, industry, business stage, and target community.
If you are looking for a comprehensive business guide that provides information and resources pertaining to Local Business Assistance, Funding Programs, Government Contracting, SBA Certification Programs etc., then the U.S. Small Business Administration (SBA) – Delaware Edition is a great place to start. You can download their resource guide as the information enclosed can be extremely helpful. The agency has dedicated “Resource Partners”who specialize in offering counseling, mentoring, and training programs to help startups and small businesses to thrive through different stages of their business life cycle. You can become a part of these programs prior to or post application for a business license in Delaware.
The Delaware Small Business Development Center is another agency that provides a wealth of information and resources that will help you to establish and grow your new business. They offer a variety of training programs including online training, on-location classes, seminars etc. The primary objective of the Delaware Small Business Development Center (DSBDC) is to develop as well as support entrepreneurship with the help of University of Delaware’s Office of Economic Innovation and Partnerships (OEIP).
Delaware annual state business license
Every business has to fulfill business licensing requirements in their state of formation as this helps to make the business legally operational. A business license in Delaware will help you to conduct your business in the state. A business license is basically a type of approval or permit that is issued by the state, regulatory bodies, state agencies, and county clerk etc., to authorize the said business to operate within the state’s boundaries. There is a Combined Registration Application (CRA) that you can submit with the Division of Revenue along with your EIN information to obtain a state license. It is also important to note that you may need to apply for and obtain licenses that are issued locally by the city council or county clerk offices. This requirement may vary from one county to another. Renewing a Delaware business license is also very important as failure to do so may lead to your business being unable to operate in the state.
The process of filling and filing a license along with Delaware business license fees can be disconcerting and complex as depending on the business activity, you may need to apply for state licenses from different regulatory agencies. This is where our comprehensive “Business License Research Report” can be extremely helpful as it contains a list of filing instructions, supporting document requirements and fees for all business licenses and permits in the state of Delaware.
Obtaining a Delaware Business License
An entrepreneur or a business entity in any state has to fulfill their business licensing needs prior to starting their business operations. A business license in Delaware is a crucial aspect of any business formation and operations and helps in protecting an entity legally while boosting credibility, which provides access to state or city wide funding. Business licensing is a state-level requirement although you may need to obtain a Delaware business license on the local or county level also. The main reasons for a business license requirement are:
- Recognition of your company
- Ensuring responsibility towards yours or the actions of the entity
- Protecting public safety and health
- Monitoring finances for tax purpose
A business in any form requires a business license in Delaware pursuant to Title 29, Chapter 103 – Business Registration and Licensing System – § 10301 to § 10308. Let’s take a look at the process for obtaining or renewing a Delaware business license.
How do I obtain a business license in Delaware?
If you are an entrepreneur or a new business owner then you need to apply for a business license in Delaware with the Division of Revenue. The following steps will help you to obtain a Delaware business license:
- You can apply online with the Division of Revenue by using the “One Stop Business Licensing and Registration Service“
- Alternatively, you can download the “Combined Registration Application (CRA) Form”
- Once you complete the CRA form, you can mail it along with the required Delaware business license fees to:
- Division of Revenue
P.O. Box 8750
Wilmington, DE 19899-8750
- Division of Revenue
It is important to ensure the form has been filled correctly and provides accurate information as incorrect or lack of information may result in the application getting rejected.
You may need to also file multiple business licenses as well as regulated industry licenses depending on the business activity. There are several state regulated industries wherein you will be required to apply for a Delaware business license with the respective state agencies. e.g., a food establishment like a restaurant will have to fulfill regulatory requirements as specified by Delaware Health and Social Services, Delaware Division of Public Health. You will also be required to apply for renewing Delaware business licenses with the licensing state agencies.
Do you need to find out what Delaware business licenses you need?
How long does it take to receive a business license in Delaware?
A Delaware business license or permit will be issued once you have filed your licensing or permit application with the Division of Revenue along with the required Delaware business license fees. Generally, most businesses will receive or obtain a Delaware business license within a month from the date of registration with the Division of Revenue.
If you have applied online using the One Stop Business Licensing and Registration Service along with Delaware business license fees then you will have the advantage of printing a temporary license once the registration or renewal process is complete. A permanent license is normally sent within 10 working days from the date of filing the application.
Renewing Delaware business license
A business license in Delaware is issued with the annual requirement of renewal. It is normally issued for a calendar year or 1-year and expires on December 31 each year. Once it expires, you will need to apply for renewing a Delaware business license as failure to renew may hamper your business operations in the state. You will have the option to renew your license for a term of 1 year or 3 years.
There are two ways for renewing a Delaware business license and they are:
- You can renew your business license online using the Online Renewal option at the Division of Revenue portal.
- You can complete a business license renewal form and mail it to the office of the Division of Revenue along with the appropriate Delaware business license fees
Delaware Business License Fees
The annual Delaware business license fees will vary depending on the category of activity the business pursues. For example, the fee for Automobile Manufacturers is $75 while that of an Outdoor Music Festival Promoter is $750. However, the license fee is generally $75.00 for a first location for 1 year. In the second year, you will have the option of renewing Delaware business license for a 3-year period and the fee will be 3 times the original fee i.e., if the annual fee is $75 then a 3-year fee will be $225. Similarly, you will need to apply for a separate license for each separate business activity and multiple locations.
How does IncParadise help you?
Every business being formed in Delaware has different objectives as well as business activity and hence the requirement of a business license in Delaware will be different. You may require one license or permit or multiple licenses based primarily on the location of your company and business activity. This is where IncParadise can play a key role and provide guidance that will help you to obtain a Delaware business license or permits and ensure you are able to maintain compliance with the Delaware licensing regulations.
IncParadise is one of the most reputable registered agents in the state and we focus on providing a service that will help you to fulfill a variety of business related requirements. You can take advantage of our additional services that vary from obtaining an EIN to Delaware Annual Report assistance, S Corporation election, Foreign Qualification, Certificate of Good Standing, and Business License Report among others.