Delaware vs New York: what an LLC really costs
Delaware charges $110 to form an LLC and New York charges $200, but over 5 years the totals are $2,110 and $223. Both figures computed from each state's own fee schedule, plus what forming in one while operating in the other actually costs.
Estimate only — not tax, legal, or accounting advice. This is the published math for Delaware and New York LLC costs. Confirm final figures with your payroll provider, accountant, or the state agency before acting on them.
Figures assume you act as your own registered agent, which is lawful in most states and costs nothing — so this compares STATES rather than service purchases.
The ranking flips. Delaware is cheaper to form, but New York is cheaper by year 5. Comparisons that stop at the filing fee give the opposite answer to the one your bank account will.
| Delaware | New York | |
|---|---|---|
| Filing fee | $110 | $200 |
| Annual report | none | $9 biennial |
| Report due | Delaware LLCs file NO annual report. The Division states it plainly: "There is no requirement to file an Annual Report." What is owed instead is a flat annual tax — see ongoing obligations. | Biennial Statement, $9.00, required by Limited Liability Company Law §301(e). "Domestic limited liability companies are required to file a Biennial Statement two years after the filing of the Articles of Organization with the NYS Department of State, and every two years thereafter. The filing period is the calendar month in which the original Articles of Organization were filed by the Department of State." For an LLC it reports only "the address to which the New York Secretary of State shall mail a copy of any process accepted on its behalf". Do not file early: "A Biennial Statement should not be filed prior to the calendar month in which the Biennial Statement is due." There is no late fee published, but "a corporation or LLC that fails to file its Biennial Statement will be reflected in the New York Department of State's records as past due", which shows on any Certificate of Status. "Expedited handling is not available for the filing of Biennial Statements." |
| Other yearly obligations | Annual LLC Tax $400 | none |
| Per year, total | $400 | $5 |
| Year one | $510 | $205 |
| Year 5 total | $2,110 | $223 |
| Be your own agent? | no | yes, $0 |
Forming in Delaware while operating in New York
+$2,610 to +$3,610
over 5 years, against simply forming in New York.
- Forming in Delaware while operating in New York costs $2,610 to $3,610 MORE over 5 years than simply forming in New York — and it cannot come out cheaper, because you carry the home state either way.
- Operating in New York means registering there whichever state you formed in, so the Delaware structure adds a second filing, a second annual report, and a second registered agent rather than replacing the first.
- It also does not move your tax: state income and franchise tax follow where the money is earned and where the business operates, not where the articles were filed.
- Failing to register in the state you actually operate in carries penalties and can cost you the right to bring a lawsuit there — the downside is not only the fees below.
Cheap to start, expensive to keep
Delaware charges $110 to form an LLC and about $400 every year afterwards — 3.64× the filing fee, annually. The number most comparisons quote is the one that matters least.
Frequently asked
- Is it cheaper to form an LLC in Delaware or New York?
- Over 5 years, New York — $223 against $2,110, acting as your own registered agent. That is the opposite of the filing-fee answer: Delaware is cheaper to form, which is the number most comparisons stop at.
- Should I form in Delaware if my business operates in New York?
- On fees, no — and it is not close. Operating in New York means registering there as a foreign LLC whichever state you formed in, so the Delaware structure adds a second filing, a second annual report and a registered agent you must rent, on top of everything New York charges anyway. Over 5 years that is $2,610 to $3,610 more than simply forming in New York.
- Does forming in Delaware lower my taxes?
- No. State income and franchise taxes follow where the business earns and operates, not where the articles were filed. That is why the fee comparison on this page is the whole of the fee argument — and the fee argument does not favour the two-state structure either.
Verified 2026-08-04 against Delaware Department of State, Division of Corporations Fee Schedule (Revised August 1, 2026) (effective 2026-08-01)
Verified 2026-08-05 against New York State Department of State, Division of Corporations — Articles of Organization for Domestic Limited Liability Company (effective 2026-01-01)
Full detail: Delaware · New York · Or compare any two verified states.