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

Delaware is cheaper at formation ($110) than Minnesota ($155). Ongoing costs are also different: $400 vs $100 per year. Total over three years: $1,310 vs $455.

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

Yes, but your Minnesota business will almost certainly need to register as a foreign LLC in Minnesota too, which means paying Minnesota's foreign registration fee and any ongoing Minnesota 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 Minnesota?

Delaware online: 10 business days; Minnesota online: 1 business day. Delaware offers paid expedite from $100. Minnesota does not offer paid expedite.

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

Delaware: state income tax applies to member-level pass-through income, plus a $300 minimum entity-level tax. Minnesota: state income tax applies to member-level pass-through income, 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 Minnesota 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 Minnesota 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 Minnesota LLC comparison

Delaware charges $110 to form an LLC; Minnesota charges $155. 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, Minnesota runs about $855 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). Minnesota does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.

On speed, Minnesota 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

Minnesota $155

Delaware saves $45

Year 1 total estimate

Delaware $510

Minnesota $255

Minnesota saves $255

Ongoing per year

Delaware $400

Minnesota $100

Minnesota saves $300

3-year total

Delaware $1,310

Minnesota $455

Minnesota saves $855

Key differences at a glance

Delaware costs $45 less to form ($110 vs $155).
Minnesota is $300 per year cheaper to maintain ($100 vs $400).
Delaware imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Minnesota does not.
Delaware has no annual report filing at all. Minnesota 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 Minnesota

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 Minnesota

Year 1

$510

$255

Year 2

$910

$355

Year 3

$1,310

$455

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 Minnesota, business operates there No foreign LLC registration needed. You pay Minnesota fees only.	$255	$100	$455
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 Minnesota with operations elsewhere You pay Minnesota's fees plus a typical home-state foreign LLC registration of about $200 per year.	$455	$300	$1,055

Delaware vs Minnesota: full comparison

Dimension	Delaware	Minnesota
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	10 business days	1 business day
Expedited option Paid fast-track filing	$100	Not offered
Annual report Required in addition to tax	None	Required, $0
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	Yes
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	$205
State sales tax General statewide rate	None	6.9%

Taxes in Delaware and Minnesota

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%.

Minnesota tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 9.8%.

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.

Minnesota

Annual report $0, due 12/31 each year. Registered agent required in Minnesota.

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.

Minnesota

Check business-name availability on the Minnesota entity search.
Appoint a registered agent with a physical Minnesota street address.
File Articles of Organization, Chapter 322C Limited Liability Company for $155.
Wait for approval. Online typically 1 business days. No paid expedite offered.
Adopt an operating agreement (recommended, not required by Minnesota 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 $0 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 Minnesota (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 Minnesota 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

Minnesota Secretary of State, Business Services Division

Website: www.sos.mn.gov
Phone: (651) 296-2803
Email: business.services@state.mn.us
Mail: Minnesota Secretary of State, Business Services, Retirement Systems of Minnesota Building, 60 Empire Drive, Suite 100, Saint Paul, MN 55103
Office: First National Bank Building, 332 Minnesota Street, Suite N201, Saint Paul, MN 55101
Hours: 8:00 AM to 4:00 PM Central, 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

Minnesota Department of Revenue

Website: www.revenue.state.mn.us
Phone: (651) 556-3000
Mail: Minnesota Department of Revenue, 600 North Robert Street, Saint Paul, MN 55101
Office: 600 North Robert Street, Saint Paul, MN 55101
Hours: 8:00 AM to 4:30 PM Central, Monday to Friday

Frequently Asked Questions

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

Delaware is cheaper at formation ($110) than Minnesota ($155). Ongoing costs are also different: $400 vs $100 per year. Total over three years: $1,310 vs $455.
Can I form an LLC in Delaware if I live in Minnesota?

Yes, but your Minnesota business will almost certainly need to register as a foreign LLC in Minnesota too, which means paying Minnesota's foreign registration fee and any ongoing Minnesota 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 Minnesota?

Delaware online: 10 business days; Minnesota online: 1 business day. Delaware offers paid expedite from $100. Minnesota does not offer paid expedite.
Which state has lower taxes for an LLC, Delaware or Minnesota?

Delaware: state income tax applies to member-level pass-through income, plus a $300 minimum entity-level tax. Minnesota: state income tax applies to member-level pass-through income, 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 Minnesota 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 Minnesota 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 →
MinnesotaOpen Minnesota LLC guide →

More Delaware and Minnesota comparisons

More Delaware vs ...

More Minnesota 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: www.sos.mn.gov/business-liens/start-a-business/business-filing-certifi… · verified April 21, 2026
Minnesota SoS Business Filing and Certification Fee Schedule: Chapter 322C Domestic LLC Articles of Organization original filing is $135 by mail or $155 in-person/online. The online/in-person fee recorded as the default filingFee because it reflects same-day processing; mail is $20 cheaper but adds roughly two weeks of processing. Authority: Minn. Stat. 322C.0201 and 357.11.
Expedited filing: www.sos.mn.gov/business-liens/start-a-business/business-filing-certifi… · verified April 21, 2026
Minnesota does not offer a separate expedited service for LLC formation. The $20 premium between mail ($135) and in-person/online ($155) functions as a de facto same-day versus mail differential. In-person and online filings are processed the same day or within 1 business day.
Annual report fee: www.sos.mn.gov/business-liens/business-help/how-to-renew-your-business… · verified April 21, 2026
Minnesota SoS renewal page: Annual renewal for domestic LLCs in good standing is free (both mail and online). Due December 31 each year. Missing the deadline statutorily dissolves the LLC on the first business day of the next year. Reinstatement costs $25 by mail or $45 in-person/online, plus the current year's renewal. Authority: Minn. Stat. 322C.0209.
Franchise tax: www.revenue.state.mn.us/corporation-franchise-tax · verified April 21, 2026
Minnesota DOR Corporation Franchise Tax page: applies to C corps and entities electing C-corp treatment at a flat 9.8% on taxable income. Minimum fee tiered on Minnesota property, payroll, and sales applies above $1,130,000 threshold. Pass-through LLCs (partnerships, disregarded entities) owe no entity-level franchise tax; flag classified as not-applies for standard LLCs.
Corporate income tax rate: www.revisor.mn.gov/statutes/cite/290.06 · verified April 21, 2026
Minn. Stat. 290.06: flat 9.8% Minnesota corporate franchise tax rate. Applies to C-corp income.
Sales tax rate: www.revenue.state.mn.us/calculate-sales-tax-rate · verified April 21, 2026
Minnesota statewide sales and use tax is 6.875% under Minn. Stat. 297A.62. Local option sales taxes can bring combined rates up to about 9.025% in Minneapolis. Statewide base rate recorded here.
Foreign LLC registration fee: www.sos.mn.gov/business-liens/start-a-business/business-filing-certifi… · verified April 21, 2026
Minnesota SoS fee schedule: Foreign LLC Certificate of Authority original filing is $185 by mail or $205 in-person/online. Online/in-person fee recorded to match the domestic filingFee method.
Operating agreement requirement: www.revisor.mn.gov/statutes/cite/322C.0110 · verified April 21, 2026
Minn. Stat. 322C.0110 recognizes oral, written, implied, or combined operating agreements but does not require LLCs to adopt one. Minnesota Revised Uniform Limited Liability Company Act (Chapter 322C) default rules apply when no operating agreement exists.
Publication requirement: www.revisor.mn.gov/statutes/cite/322c · verified April 21, 2026
Minn. Stat. Chapter 322C contains no publication or newspaper notice requirement for LLC formation.
Business name search: mblsportal.sos.state.mn.us/Business/Search · verified April 21, 2026
Minnesota Business and Lien System (MBLS) entity search. Used to confirm name availability before filing Articles of Organization.

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