Delaware vs Nevada LLC at a glance
| Criteria | Delaware | Nevada |
|---|---|---|
| State filing fee | $110 (standard · online) | $436 (standard · online) |
| Documents back in | about 3 days | about 2 days |
| Yearly state cost | $400 flat tax | $350 (annual list + business license) |
| Yearly due date | June 1 | Last day of your anniversary month |
| Yearly report to fileDelaware LLCs pay a tax but file no report; Nevada LLCs file an annual list. | ||
| If you pay late | $200 penalty + 1.5% interest a month | $75 list penalty + $100 license penalty |
| Managers named on public filings | ||
| State income tax for an owner abroad with no in-state businessDelaware taxes non-residents only on income from Delaware sources. Nevada has no income tax. | ||
| Tax on gross receipts or revenue | Gross receipts tax if you operate in Delaware | Commerce tax above $4M of Nevada revenue |
| First year with our Starter plan | $459 | $785 |
Cost: Delaware is cheaper to start, Nevada slightly cheaper each year
Delaware costs $110 to form. Nevada costs $436, because three filings are due at the start: the Articles of Organization ($75), the initial list of managers or managing members ($150) and the state business license ($200).
After that, Delaware charges every LLC a flat $400 annual tax, whatever its income, while Nevada charges $150 for the annual list plus $200 to renew the state business license. Over five years, Delaware comes out ahead by about $126 in state fees.
| Delaware | Nevada | |
|---|---|---|
| Year 1 (formation) | $110 | $436 |
| Each year after | $400 | $350 |
| Formation + 4 yearly payments | $1,710 | $1,836 |
| The same in rupees (indicative) | ₹1,63,400 | ₹1,75,400 |
The deadlines work differently. Delaware's tax for each year is due by June 1 of the following year and isn't prorated for a partial first year. It rose from $300 to $400 starting with tax year 2026, so the new amount is first due June 1, 2027. Nevada's list and license are due by the last day of your anniversary month.
Paying late costs a $200 penalty plus 1.5% interest a month in Delaware. In Nevada it's a $75 penalty on the list and $100 on the license, and a company that stays in default has its charter revoked. See LLC annual fees by state to compare every state.
Taxes: what each state can charge an LLC run from abroad
Nevada has no personal income tax, no corporate income tax and no franchise tax. Its commerce tax applies only to businesses with more than $4 million of Nevada gross revenue in a July-to-June fiscal year, at rates that vary by industry, and businesses below that don't file a return.
Delaware does have income taxes, but they rarely reach an LLC owned and run from outside the US. Delaware classifies an LLC the same way the IRS does, and it taxes non-residents only on income from Delaware sources. An LLC taxed as a corporation pays Delaware's 8.7% corporate income tax only if it does business in Delaware, and businesses that operate in Delaware need a Delaware business license and pay its gross receipts tax.
Neither state changes your federal position. A single-member LLC owned by a non-US person files Form 5472 with a pro forma Form 1120 in any year it has reportable transactions with its owner, and your US income tax depends on how and where you do business. Start with US taxes for non-resident LLC owners.
Privacy: Delaware's public record shows far less
Delaware's Certificate of Formation needs only the company name and its registered agent and office, signed by an authorized person who can be your formation service. It doesn't name members or managers, and Delaware LLCs file no annual report that would add them later.
Nevada's Articles of Organization include the name and address of each organizer and each initial manager, or each initial member if the members run the company. Every annual list then repeats the name, title and address of each manager or managing member. You can give a business address instead of a home address, but the names stay on the record.
Neither state hides you from the IRS or your bank. US-formed LLCs no longer file federal beneficial ownership reports since FinCEN's final rule took effect on August 14, 2026; see BOI reporting in 2026.
Courts and investors: where Delaware stands out
Delaware's Court of Chancery decides business disputes without a jury, and its judges explain their decisions in written opinions, which has built the body of case law lawyers rely on. Delaware reports that it's the legal home of over two-thirds of the Fortune 500, and that nearly 70% of US-based companies that went public in 2025 chose it.
That advantage belongs mostly to corporations. Venture funds typically invest in C-corps: the National Venture Capital Association's model financing documents are built around a certificate of incorporation and a stock purchase, and the federal tax break for qualified small business stock applies only to C-corporation stock. If raising money is the plan, compare LLC vs C-corp before you pick either state.
Delaware's LLC Act also leaves room to change course: an LLC formed in another state can convert into a Delaware LLC, and a Delaware LLC can convert into a corporation when a lawyer decides the time is right.
Which should you choose?
- Investors or partners ask for Delaware, or a C-corp conversion is likely: Delaware.
- Based in Nevada, with an office or staff there: Nevada.
- Run from abroad, with no link to either state: neither is the cheapest; compare Wyoming vs Delaware and Wyoming vs Nevada.
- The lowest yearly cost, with no annual report: see Wyoming vs New Mexico.
- Weighing every option: read the best state for an LLC as a non-resident.
Frequently asked questions
Is a Delaware LLC cheaper than a Nevada LLC?
Which is more private, Delaware or Nevada?
Does Delaware or Nevada charge income tax on my LLC?
Is Nevada or Delaware better for raising money?
Do I pay Delaware's annual tax in the year I form?
Does a Delaware LLC need a Nevada business license?
Sources
- Delaware Division of Corporations, LLC/LP/GP annual tax instructions
- Delaware General Assembly, HB 400 (fees and taxes, signed May 21, 2026)
- Delaware Code Title 6, §§ 18-201 to 18-216 (certificate of formation, conversions)
- Delaware Code Title 30, §§ 1121–1124 (non-resident income tax)
- Delaware Code Title 30, § 1902 (corporation income tax and exemptions)
- Delaware Division of Revenue, LLC FAQs (tax classification)
- Delaware Division of Revenue, business license and gross receipts tax FAQs
- Delaware Corporate Law, the Court of Chancery
- Delaware Division of Corporations, annual report statistics (2025)
- Nevada Revised Statutes chapter 86 (NRS 86.161 articles, 86.263 lists, 86.272 and 86.274 default, 86.561 fees)
- Nevada Revised Statutes chapter 76 (NRS 76.100 and 76.130, state business license)
- Nevada Department of Taxation, commerce tax FAQs
- Nevada Governor's Office of Economic Development, doing business in Nevada
- National Venture Capital Association, model legal documents
- 26 U.S. Code § 1202, qualified small business stock
- FinCEN, beneficial ownership information reporting
- IRS, Instructions for Form 5472
Facts checked on September 17, 2026 against the sources above. Rules and fees change, so confirm anything important with the official source. Register Quick LLC is not a law firm or CPA firm, and this page is general information, not legal or tax advice.
