Is it cheaper to form an LLC in Delaware or Florida?

Delaware is cheaper at formation ($110) than Florida ($125). Ongoing costs are also different: $400 vs $239 per year. Total over three years: $1,310 vs $842.

Can I form an LLC in Delaware if I live in Florida?

Yes, but your Florida business will almost certainly need to register as a foreign LLC in Florida too, which means paying Florida's foreign registration fee and any ongoing Florida obligations on top of the Delaware ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

How long does it take to form an LLC in Delaware vs Florida?

Delaware online: 10 business days; Florida online: 7 business days. Delaware offers paid expedite from $100. Florida does not offer paid expedite.

Which state has lower taxes for an LLC, Delaware or Florida?

Delaware: state income tax applies to member-level pass-through income, plus a $300 minimum entity-level tax. Florida: no state income tax, no entity-level franchise or LLC tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Delaware and Florida both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Delaware or Florida to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Delaware vs Florida LLC comparison

Delaware charges $110 to form an LLC; Florida charges $125. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Florida runs about $468 less in total state fees than Delaware. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

Delaware imposes an entity-level annual tax on every LLC ($300 minimum). Florida does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.

On speed, Florida typically clears standard online filings faster than Delaware. Both states offer expedited tiers at an additional cost for filers on tight timelines.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

Delaware $110

Florida $125

Delaware saves $15

Year 1 total estimate

Delaware $510

Florida $364

Florida saves $146

Ongoing per year

Delaware $400

Florida $239

Florida saves $161

3-year total

Delaware $1,310

Florida $842

Florida saves $468

Key differences at a glance

Delaware costs $15 less to form ($110 vs $125).
Florida is $161 per year cheaper to maintain ($239 vs $400).
Florida has no state individual income tax; pass-through LLC income flows to members without a state layer. The other state does tax at the member level.
Delaware imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Florida does not.
Delaware has no annual report filing at all. Florida requires an annual (or biennial) report every reporting period.

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only Delaware

Paid expedited tier
No state sales tax
No annual report

Only Florida

No state income tax
No entity-level franchise or LLC tax

Both states

Online filing
No publication requirement
Operating agreement not statutorily required

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Delaware Florida

Year 1

$510

$364

Year 2

$910

$603

Year 3

$1,310

$842

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in Delaware, business operates there No foreign LLC registration needed. You pay Delaware fees only.	$510	$400	$1,310
You live in Florida, business operates there No foreign LLC registration needed. You pay Florida fees only.	$364	$239	$842
Non-resident forming in Delaware with operations elsewhere You pay Delaware's fees plus a typical home-state foreign LLC registration of about $200 per year.	$710	$600	$1,910
Non-resident forming in Florida with operations elsewhere You pay Florida's fees plus a typical home-state foreign LLC registration of about $200 per year.	$564	$439	$1,442

Delaware vs Florida: full comparison

Dimension	Delaware	Florida
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	10 business days	7 business days
Expedited option Paid fast-track filing	$100	Not offered
Annual report Required in addition to tax	None	Required, $139
State-imposed annual tax Franchise, privilege, or LLC tax minimum	$300 minimum	None
State income tax On pass-through LLC income at member level	Yes	No
Publication requirement Newspaper publication after formation	No	No
Operating agreement Required by state statute	Recommended, not required	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$200	$125
State sales tax General statewide rate	None	6.0%

Taxes in Delaware and Florida

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Delaware tax

$300 minimum annual tax (flat basis). State income tax applies to member-level pass-through income. Corporate rate 8.7%.

Florida tax

No entity-level franchise tax on LLCs. No state income tax. Corporate rate 5.5%.

Ongoing compliance

The recurring filings each state requires after formation.

Delaware

Annual $300 tax, due 06/01. No separate annual report. Registered agent required in Delaware.

Florida

Annual report $139, due 05/01 each year. Registered agent required in Florida.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Delaware

Check business-name availability on the Delaware entity search.
Appoint a registered agent with a physical Delaware street address.
File Certificate of Formation of Limited Liability Company for $110.
Wait for approval. Online typically 10 business days. Paid expedite from $100.
Adopt an operating agreement (recommended, not required by Delaware statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
Pay the $300 annual Delaware LLC tax when it comes due.

Florida

Check business-name availability on the Florida entity search.
Appoint a registered agent with a physical Florida street address.
File CR2E047 - Articles of Organization for Florida Limited Liability Company for $125.
Wait for approval. Online typically 7 business days. No paid expedite offered.
Adopt an operating agreement (recommended, not required by Florida statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $139 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Delaware and Florida (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Delaware or Florida does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Delaware Division of Corporations

Website: corp.delaware.gov
Phone: (302) 739-3073
Mail: 401 Federal Street, Suite 4, Dover, DE 19901
Hours: 8:00 AM to 4:30 PM Eastern, Monday to Friday

Florida Department of State, Division of Corporations

Website: dos.fl.gov/sunbiz
Phone: (850) 245-6052
Email: NewFilingsCorpHelp@DOS.MyFlorida.com
Mail: Division of Corporations, P.O. Box 6327, Tallahassee, FL 32314
Office: The Centre of Tallahassee, 2415 N. Monroe Street, Suite 810, Tallahassee, FL 32303
Hours: 8:00 AM to 5:00 PM Eastern, Monday to Friday

Delaware Division of Revenue

Website: revenue.delaware.gov
Phone: (302) 577-8200
Mail: 820 N. French Street, Wilmington, DE 19801
Hours: 8:30 AM to 4:00 PM Eastern, Monday to Friday

Florida Department of Revenue

Website: floridarevenue.com
Phone: (850) 488-6800
Mail: 5050 W Tennessee Street, Tallahassee, FL 32399-0100
Hours: 8:00 AM to 5:00 PM Eastern, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Delaware or Florida?

Delaware is cheaper at formation ($110) than Florida ($125). Ongoing costs are also different: $400 vs $239 per year. Total over three years: $1,310 vs $842.
Can I form an LLC in Delaware if I live in Florida?

Yes, but your Florida business will almost certainly need to register as a foreign LLC in Florida too, which means paying Florida's foreign registration fee and any ongoing Florida obligations on top of the Delaware ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in Delaware vs Florida?

Delaware online: 10 business days; Florida online: 7 business days. Delaware offers paid expedite from $100. Florida does not offer paid expedite.
Which state has lower taxes for an LLC, Delaware or Florida?

Delaware: state income tax applies to member-level pass-through income, plus a $300 minimum entity-level tax. Florida: no state income tax, no entity-level franchise or LLC tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Delaware and Florida both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Delaware or Florida to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

DelawareOpen Delaware LLC guide →
FloridaOpen Florida LLC guide →

More Delaware and Florida comparisons

More Delaware vs ...

More Florida vs ...

Sources

Filing fee: corpfiles.delaware.gov/AugustFee2024.pdf · verified April 21, 2026
Delaware DoS Division of Corporations Fee Schedule, revised August 1, 2024. 'Formation – domestic' under Limited Liability Companies = $110.00 state filing fee.
Expedited filing: corpfiles.delaware.gov/AugustFee2024.pdf · verified April 21, 2026
Same Day $100, 24-Hour $50, Priority 2 (2-hour) $500, Priority 1 (1-hour) $1,000. We report 24-hour as the default expedited tier.
Annual report fee: delcode.delaware.gov/title6/c018/sc11/index.html · verified April 21, 2026
6 Del.C. §18-1107(b): annual tax of $300 for every domestic and foreign LLC. §18-1107(c): due June 1 each year. §18-1107(e): $200 late penalty plus 1.5% interest.
Franchise tax: delcode.delaware.gov/title6/c018/sc11/index.html · verified April 21, 2026
Flat $300 annual LLC tax under 6 Del.C. §18-1107. Not a share-based franchise tax like Delaware corporations; we classify it as a flat franchise-style tax for compare purposes.
Operating agreement requirement: delcode.delaware.gov/title6/c018/sc01/index.html · verified April 21, 2026
6 Del.C. §18-101(9) recognizes oral, written, or implied LLC agreements. No statutory requirement that the agreement be written or filed, so recorded as not-required.
Foreign LLC registration fee: delcode.delaware.gov/title6/c018/sc10/index.html · verified April 21, 2026
Foreign LLC registration filing fee. Cross-check against the practitioner-facing fee schedule before publishing.
Business name search: icis.corp.delaware.gov/eCorp/EntitySearch/NameSearch.aspx · verified April 21, 2026
Delaware eCorp entity search. Confirm name availability before filing.
Sales tax rate: revenue.delaware.gov/ · verified April 21, 2026
Delaware has no general state sales tax. Gross receipts tax may apply to some business activities.
Corporate income tax rate: revenue.delaware.gov/ · verified April 21, 2026
Delaware corporate income tax rate is 8.7%. Applies to C-corp income, not LLCs by default, but note here for completeness.
Filing fee: dos.fl.gov/sunbiz/forms/fees/llc-fees/ · verified April 21, 2026
Florida Division of Corporations LLC fee schedule: Articles of Organization $100.00 + mandatory Registered Agent Designation $25.00 = $125.00 total. Same fee whether filed online or by mail.
Expedited filing: dos.fl.gov/sunbiz/start-business/efile/fl-llc/ · verified April 21, 2026
Florida Division of Corporations does not offer expedited filing service for new LLC formations. Documents are processed in the order received. Online filings with credit card typically post within 2-3 business days; mail filings take several weeks.
Online filing portal: efile.sunbiz.org/llc_file.html · verified April 21, 2026
Sunbiz e-file portal for new Florida LLC Articles of Organization.
Certificate of Formation form: dos.fl.gov/sunbiz/forms/limited-liability-company/ · verified April 21, 2026
Form CR2E047 - Articles of Organization for Florida LLC. Available as PDF at http://form.sunbiz.org/pdf/cr2e047.pdf
Business name search: search.sunbiz.org/Inquiry/CorporationSearch/ByName · verified April 21, 2026
Sunbiz business entity search by name.
Operating agreement requirement: www.flsenate.gov/Laws/Statutes/2025/605.0105 · verified April 21, 2026
Fla. Stat. §605.0105 defines the LLC operating agreement as an agreement that 'may be oral, implied, in a record, or in any combination thereof.' Not required to be written or filed with the state.
Publication requirement: www.flsenate.gov/Laws/Statutes/2025/Chapter605/All · verified April 21, 2026
Florida Chapter 605 (Florida Revised LLC Act) imposes no newspaper publication requirement to form an LLC.
Foreign LLC registration fee: dos.fl.gov/sunbiz/forms/fees/llc-fees/ · verified April 21, 2026
Foreign LLC Application for Authorization to Transact Business: $100 filing + $25 registered agent = $125 total. Same as domestic formation fee.
Annual report fee: dos.fl.gov/sunbiz/manage-business/efile/annual-report/ · verified April 21, 2026
Florida Department of State: $138.75 annual report fee for LLCs. Due January 1 through May 1. Late filing after May 1 adds a $400 non-negotiable penalty (total $538.75). Administrative dissolution begins after the third Friday in September for unfiled reports.
Franchise tax: floridarevenue.com/taxes/taxesfees/Pages/corporate.aspx · verified April 21, 2026
Florida has no franchise tax. Corporate income tax of 5.5% applies only when an LLC elects C-corp treatment or is owned by a corporation. No state-level entity-level tax on pass-through LLCs.
State income tax: floridarevenue.com/taxes/taxesfees/Pages/individual.aspx · verified April 21, 2026
Florida Constitution Article VII, Section 5 prohibits a personal income tax. Pass-through LLC income flows to members who owe no Florida individual income tax.
Corporate income tax rate: floridarevenue.com/taxes/taxesfees/Pages/corporate.aspx · verified April 21, 2026
Florida corporate income tax rate is 5.5% for taxable years on or after January 1, 2022.
Sales tax rate: floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx · verified April 21, 2026
Florida general state sales tax rate is 6%. Counties may impose a discretionary sales surtax ranging 0.5% to 1.5%.

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