A. Any person or entity conducting a trade or occupation in the State of Delaware is required to obtain a Delaware commercial enterprise license from the Delaware Division of Revenue. This includes entities located in Delaware who conduct their business outside the express. A business license must be obtained at the meter business commences in Delaware. If you are diffident of whether or not you have solid presence in Delaware to be subject to license and tax, complete and submit our Nexus Questionnaire and the Delaware Division of Revenue will provide steering : Nexus Questionnaire
Q. Is getting a Delaware business license the only requirement for those conducting business in Delaware?
A. No, depending on your commercial enterprise and where you live you may besides be required to register with early local, department of state and union entities.
In summation to registering with the Delaware Division of Revenue and obtaining a Delaware commercial enterprise license :
All businesses (except sole proprietors with no employees) must additionally register with the federal government and obtain an Employee Identification Number ( EIN ). Businesses can comply with federal requirements by contacting the Employer ID Numbers section of the IRS web site .
Depending on where you are located in Delaware, your city and/or county may besides require a city and/or county occupation license, in addition to a State of Delaware occupation license. Please contact your local government offices for more information about local requirements .
Businesses with employees must additionally register with the Delaware Division of Unemployment Insurance and the Delaware Office of Workers Compensation
Corporations, Partnerships, Limited Liability Companies, etc who conduct business in Delaware must additionally register with the Delaware Division of Corporations .
Certain professions must additionally register and obtain a license with the Delaware Division of Professional Regulations. Please visit the Division of Professional Regulations for a tilt of applicable professions .
Q. How do I obtain a Delaware business license from the Division of Revenue?
A. Complete your registration on-line using the One Stop Business Licensing and Registration Service. This service will allow you to register simultaneously with other submit and federal entities .
Q. How long does it take to receive a Delaware business license?
A. Most businesses receive their Delaware business license within a month of registering with the Delaware Division of Revenue .
Licenses can be obtained using the One Stop Business Licensing and Registration Service, and you may print a irregular license at the end of the registration or reclamation process. permanent licenses are by and large sent within 10 work days .
Q. How do I renew a Delaware business license?
A. There are two ways to renew a Delaware Business License :
Renew your license on-line using Revenue ’ s Online Renewal or through the portal at tax.delaware.gov
Q. Do I have to pay the full fee if I start in the middle of a year?
A. Most licenses are proratable for the first year of action. You may contact one of the Delaware Division of Revenue ’ s Public Service Offices for your specific license fee amount due .
Q. How long does my business license last?
A. Generally, most Delaware clientele licenses are good for one year and expire each December 31st. Three-year business licenses expire on December 31st of the third year .
After the first year of being licensed in Delaware, a business may opt, but is not required, to obtain a three-year Delaware business license, decreasing paperwork and mitigating the opportunity for license-renewal oversight .
The monetary value of a three-year Delaware license is not discounted ; businesses will pay three times their regular annual license fee for a three-year license .
Businesses will receive one license text file for all three years .
You can besides renew your Delaware commercial enterprise license on-line using our Online Renewal or through the portal site at hypertext transfer protocol : //tax.delaware.gov
Q. What if I need a Delaware business license right away?
A. One of the benefits of on-line occupation registration and reclamation is that Temporary Delaware Business Licenses can be obtained and printed right from your desktop computer .
If you are obtaining a Delaware business license for the first base time, please access Delaware ’ s One Stop Business Licensing and Registration Service. This service will allow you to register and print a temp license .
If you already have a Delaware business license and need to renew, you may complete an Online Renewal or through the portal vein at hypertext transfer protocol : //tax.delaware.gov. Revenue ’ s on-line refilling will allow you to print a irregular license.
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You may besides obtain a temp license in person at one of our Public Service Offices .
permanent wave licenses will be subsequently mailed .
Q. Do I still need a State of Delaware license if I have a Professional Regulation License or Child Care License?
A. Yes, a State of Delaware business license is needed in addition to any professional licenses. Please visit the Division of Professional Regulations to see which professions require extra licensure .
Q. When do business licenses expire? Do I have to renew them each year?
A. All Delaware commercial enterprise licenses expire on December 31st of each year or December 31st of the one-third year for 3-year licenses. Business Licenses for the approaching class are required to be renewed no later than December 31st of the go year .
There are two ways to renew a Delaware Business License :
Renew your license on-line using Revenue ’ s Online Renewal or through the portal vein at hypertext transfer protocol : //tax.delaware.gov
Q. Will I receive a renewal reminder?
A. The Division of Revenue will send renewal coupons each year for one year licenses and every three years for those licensees who have opted to renew for three years. however, if you fail to receive a renewal coupon by December 1st, please contact one of our Public Service Offices for aid in renewing your license prior to the December 31st termination .
You may besides renew on-line using our Online License Renewal .
Q. What do I need to consider or obtain prior to registering my business with state and federal entities?
A. You will want to consider what type of entity your business will be. For case, will you register your business as a lone proprietorship, a partnership, a corporation or a express Liability Company ?
Please notice that the Division of Revenue can not assist you with this choice. If you are uncertain how you should register, you may need to contact an accountant, a lawyer or Delaware ’ s Small Business Administration for aid. besides, please visit Step 1 : Determine Your Business type on the Delaware Division of Revenue web site .
Q. May I Transfer my Business License to a New Owner?
A. A commercial enterprise license may not be transferred from one owner to another. New owners of a business must apply for their own business license by completing a fresh license application ( Form CRA ) via OneStop .
Q. Do I Need a New Business License if I Change my Legal Entity?
A. Any change of legal entity ( i.e., sole proprietorship to corporation, etc. ) requires a new business license. It is the duty of the commercial enterprise owner to advise the Business License Department that the erstwhile legal entity is “ Out of Business ” .
Q. What other tax requirements will I have to meet?
A. Delaware does not impose a submit sales tax ; however, Delaware does impose a tax on the gross receipts of most businesses. Gross receipts are the sum amount received from the sale of goods or services sold by the business .
Gross receipts tax rates range from 0.1037 % to 2.0736 %, depending on your business action .
If you have employees you are required to withhold State of Delaware “ withholding tax ” for each employee and submit this to the Delaware Division of Revenue. To register as a withhold agent, accomplished Part B of the CRA class via OneStop.
Please access our Withholding Guide for more information .
Depending on your entity type, you may have an income tax retort duty as well. sole Proprietors report business income on their individual tax returns. Partnerships report income on a partnership return. Corporations report income on a pot return key .
For more information on commercial enterprise licenses, please contact the Delaware Division of Revenue ’ s Business Master File at ( 302 ) 577-8778. Our customer serve representatives will provide you with detailed information and answers to your specific tax questions .