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

Delaware is cheaper at formation ($110) than Washington ($180). Ongoing costs are also different: $400 vs $170 per year. Total over three years: $1,310 vs $690.

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

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

Delaware online: 10 business days; Washington online: 5 business days. Delaware offers paid expedite from $100. Washington offers paid expedite from $100.

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

Delaware: state income tax applies to member-level pass-through income, plus a $300 minimum entity-level tax. Washington: no state income tax, 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 Washington 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 Washington 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 Washington LLC comparison

Delaware charges $110 to form an LLC; Washington charges $180. 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, Washington runs about $620 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). Washington does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.

On speed, Washington 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

Washington $180

Delaware saves $70

Year 1 total estimate

Delaware $510

Washington $350

Washington saves $160

Ongoing per year

Delaware $400

Washington $170

Washington saves $230

3-year total

Delaware $1,310

Washington $690

Washington saves $620

Key differences at a glance

Delaware costs $70 less to form ($110 vs $180).
Washington is $230 per year cheaper to maintain ($170 vs $400).
Washington has no state individual income tax; pass-through LLC income flows to members without a state layer. The other state does tax at the member level.
Delaware imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Washington does not.
Delaware has no annual report filing at all. Washington 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

No state sales tax
No annual report

Only Washington

No state income tax
No entity-level franchise or LLC tax

Both states

Online filing
Paid expedited tier
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 Washington

Year 1

$510

$350

Year 2

$910

$520

Year 3

$1,310

$690

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 Washington, business operates there No foreign LLC registration needed. You pay Washington fees only.	$350	$170	$690
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 Washington with operations elsewhere You pay Washington's fees plus a typical home-state foreign LLC registration of about $200 per year.	$550	$370	$1,290

Delaware vs Washington: full comparison

Dimension	Delaware	Washington
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	10 business days	5 business days
Expedited option Paid fast-track filing	$100	$100
Annual report Required in addition to tax	None	Required, $70
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	No
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	$180
State sales tax General statewide rate	None	6.5%

Taxes in Delaware and Washington

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%.

Washington tax

No entity-level franchise tax on LLCs. No state income tax.

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.

Washington

Annual report $70, due on your anniversary month. Registered agent required in Washington.

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.

Washington

Check business-name availability on the Washington entity search.
Appoint a registered agent with a physical Washington street address.
File Certificate of Formation - Limited Liability Company for $180.
Wait for approval. Online typically 5 business days. Paid expedite from $100.
Adopt an operating agreement (recommended, not required by Washington 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 $70 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 Washington (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 Washington 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

Washington Secretary of State - Corporations & Charities Division

Website: www.sos.wa.gov/corporations-charities
Phone: (360) 725-0377
Email: corps@sos.wa.gov
Mail: Corporations & Charities Division, P.O. Box 40234, Olympia, WA 98504-0234
Office: 801 Capitol Way S, Olympia, WA 98501-1226
Hours: 8:00 AM to 5:00 PM Pacific, 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

Washington State Department of Revenue

Website: dor.wa.gov
Phone: (360) 705-6705
Mail: Washington State Department of Revenue, P.O. Box 47450, Olympia, WA 98504-7450
Office: 6500 Linderson Way SW, Tumwater, WA 98501
Hours: 8:00 AM to 5:00 PM Pacific, Monday to Friday

Frequently Asked Questions

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

Delaware is cheaper at formation ($110) than Washington ($180). Ongoing costs are also different: $400 vs $170 per year. Total over three years: $1,310 vs $690.
Can I form an LLC in Delaware if I live in Washington?

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

Delaware online: 10 business days; Washington online: 5 business days. Delaware offers paid expedite from $100. Washington offers paid expedite from $100.
Which state has lower taxes for an LLC, Delaware or Washington?

Delaware: state income tax applies to member-level pass-through income, plus a $300 minimum entity-level tax. Washington: no state income tax, 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 Washington 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 Washington 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 →
WashingtonOpen Washington LLC guide →

More Delaware and Washington comparisons

More Delaware vs ...

More Washington 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.wa.gov/corporations-charities/frequently-asked-questions-faqs/… · verified April 21, 2026
WA SoS Corporations & Charities Division Fee Schedule. Under 'Limited Liability Companies (RCW 25.15)': Original Filings = $180. Same $180 fee applies whether filed online through CCFS or by mail. Washington does not charge an online-vs-mail differential for the Certificate of Formation itself.
Expedited filing: www.sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/… · verified April 21, 2026
Expedited service = $100 per business entity, generally processed within three working days. Same-day service = $150 per business entity (front-counter submission only). Mail-in expedited requests must include $100 and label envelope 'EXPEDITE'. We record the $100 three-business-day (approx 72-hour) tier.
Foreign LLC registration fee: www.sos.wa.gov/corporations-charities/business-entities/limited-liabil… · verified April 21, 2026
Foreign Registration for a non-WA LLC = $180 filing fee, matching the domestic Certificate of Formation fee.
Operating agreement requirement: app.leg.wa.gov/rcw/default.aspx?cite=25.15.018 · verified April 21, 2026
RCW 25.15.018 (Washington Limited Liability Company Act) recognizes an LLC agreement that may be oral, written, or implied. There is no statutory requirement that LLCs adopt an operating agreement, so this is recorded as not required. If none is adopted, the default provisions of RCW 25.15 govern.
Publication requirement: app.leg.wa.gov/rcw/default.aspx?cite=25.15 · verified April 21, 2026
Washington imposes no publication requirement on LLCs. RCW Chapter 25.15 contains no publication mandate.
Annual report fee: www.sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/… · verified April 21, 2026
Annual Report fee for profit business entity types (including LLCs) is $70, increased per WAC 434-112-085(7) and codified in RCW 23.95.515. Annual Report with delinquency fee = $95. Initial or Amended Annual Report = $10.
Franchise tax: dor.wa.gov/taxes-rates/business-occupation-tax · verified April 21, 2026
Washington has no franchise tax on LLCs. Washington's Business & Occupation (B&O) tax is a gross-receipts tax, not a franchise tax. B&O rates in 2026: retailing 0.471%, wholesaling 0.484%, manufacturing 0.484%, service & other activities 1.5% (less than $1M in prior-year taxable income), 1.75% ($1M-$5M), 2.1% (over $5M effective Oct 1, 2025). Additional 0.5% surcharge on WA taxable income over $250M from Jan 1, 2026. Because the B&O is structurally a gross-receipts tax on business activity rather than a capital-based franchise tax, franchiseTax.applies is set to false.
Corporate income tax rate: dor.wa.gov/taxes-rates/business-occupation-tax · verified April 21, 2026
Washington has no corporate income tax; maxCorporateRate is recorded as null. The state's business tax is the B&O gross-receipts tax (captured in franchiseTax.notes). Washington also has no state personal income tax, only a 7% long-term capital gains excise tax for individuals above the threshold.
Sales tax rate: dor.wa.gov/taxes-rates/sales-use-tax-rates · verified April 21, 2026
Washington's statewide sales and use tax rate is 6.5%. Cities and counties add local sales taxes, bringing combined rates to roughly 7% to 10.6% depending on jurisdiction. Only the 6.5% statewide rate is recorded here.
Business name search: ccfs.sos.wa.gov/#/AdvancedSearch · verified April 21, 2026
Corporations and Charities Filing System (CCFS) advanced search. Same platform used for online filings.
Online filing portal: ccfs.sos.wa.gov/ · verified April 21, 2026
Washington's Corporations and Charities Filing System (CCFS) portal. Standard online approvals typically complete within 5 business days. Filers can bundle the free Initial Report with the Certificate of Formation to satisfy the 120-day initial report requirement at no extra cost.
Certificate of Formation name: www.sos.wa.gov/sites/default/files/2022-09/12.10.2020---certificate-of… · verified April 21, 2026
Mail-in paper form titled 'Certificate of Formation - Limited Liability Company'. Online filers use the equivalent CCFS on-screen form.

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