A business or sales license is one of the most important documents required to do business in the state of Delaware. All businesses are requited to apply for one, whether they operate their main office or just a branch in the state.
How much is a business license in Delaware? Business license applications in the state of Delaware costs up to $75, plus a minor administration fee of $15 to $20. Business license applications in Delaware are meant to be a fast process, and will take up to 31 days to arrive. A business license allows a company to operate and charge sales tax in the state.
All businesses in Delaware have the same basic requirement to operate within the state’s legal framework: a basic business license. A basic business license entitles the business or company to buy, trade, sell and operate from the state of Delaware. Without the necessary license, a business is considered illegal (and could face closure).
Business Licenses in Delaware
Business licenses are a legal requirement for all operational businesses in the United States. Each state has specific needs for licenses, and the state of Delaware is no different. All businesses must apply for their license via their relevant city or town website portal.
A business license application can be submitted online, with the relevant information and payment included. Delaware business licenses cost approximately $75 to apply for, together with administration fees that might be $15 to $20 extra.
Business licenses are required for all business types, including sales, business-to-business businesses and online consumer sales or services.
Additional licenses and permits could be required for a specific type of business in Delaware. Entertainment, food and beverage companies or liquor permits are three types of other, additional business licenses. A Delaware business or branch will still require a basic business permit first.
Other documents could still be necessary for business in Delaware. Applications for other licenses and documents like an Employee Identification Number can be accessed through the same portal. The web portal also offers extra resources if you need help or a further explanation.
Applications are instant through the Delaware online portal. Applications can take between 14 to 31 days to process, though a temporary business license is issued until the final license is shipped.
License fees are non-refundable. This will still count if an application has been unsuccessful or the information has been incorrect.
Business licenses in Delaware are valid for 3 years from the date of application. Comparatively longer than some states like Alaska, where a business license expires within the same year.
A business license is one of the primary documents a business in Delaware needs to operate legally. Without it, the state could order a business to close – at least, until the right license or permit has been obtained.
How long does a business license in Delaware take?
Business licenses in Delaware can take up to 31 days from the application date, though much quicker time periods have been reported. A business license can be issued as fast as within 14 days. It can depend on various factors, including the time of year.
When does a business license in Delaware expire?
A business license remains valid in Delaware for 3 years after it has been approved. Applicants should always verify the status of their business application to make sure it isn’t close to expiry.
How do I register for a nonprofit license in Delaware?
Nonprofit licenses are a type of business permit necessary for a charity or charitable venture that operates in Delaware. Any business with a 501c3, 501c4 or 501c19 IRS designation is considered not-for-profit. Registration carries no fees, but additional licenses could be required by the state.
What if my business license is delayed?
Application process delays are normal at busy times of the year. Expect to wait a maximum of 31 days, though most applications will not take this long. The process is intended to be fast and simple.
Types of Business Licenses
| An LLC or Company | An LLC is one of the most common types of companies that you might choose to register in Delaware. Shareholders of an LLC are not held responsible for the liabilities, including business debt. |
| A General Operating License | General operating licenses are required for all types of Delaware businesses or branches. Additional licenses might apply for specific industries like entertainment or food. |
| A Food License | A food license entitles a business to legally prepare, buy, sell or trade in food or beverages. Liquor licenses are separate. |
Business License Facts in Delaware
- Small businesses make up the largest section of total industries in the state of Delaware.
- Delaware is ranked as one of the cheapest states to get a business license.
- A business license is required for all types of Delaware businesses, including ones that sell online but operate within this state.
More About Licenses in Delaware
Business licenses are one of the first steps that any business who wants to operate in the state of Delaware will need to take. Branches and main offices will both need the same type of business licenses to be considered legal.
A license can allow a business to trade, sell, buy and handle their taxes within Delaware: it’s considered an important step, without which a business could be shut down until their license application has been made.
License applications are fast, online and affordable. A basic business license costs $75 in Delaware, with minor administration fees to allow for processing. With specific businesses or industries, secondary licenses like a liquor permit could also be necessary.
Delaware business licenses expire within 3 years of their application date. It is the applicant’s responsibility to apply for renewal when the license expiration date is close.
Here are the business license costs in other states: