Are you considering starting a new business in Delaware? If so, you need to first register with the state of Delaware to prevent legal problems. Please learn more about the general guidelines below. They will inform you of what you need to know before conducting business in the state of Delaware.
If you happen to be thinking about starting a small business in Delaware, you must register for your Delaware business license. There are many steps to starting a new business. Following are the guidelines on how you can apply for business licenses, permits, and requirements needed to conduct in Delaware:
The first thing you'll need to run your new small business is a state Identification Number (ID number) that comes from the Division of Revenue.
You'll also need to acquire your other income tax withholding, use tax, and sales tax permits.
All owners of businesses need to register with the Delaware Division of Revenue to pay their unemployment insurance tax. You can handle registration online by visiting the official website of the Division of Revenue. There you will also find all the information you need to fill out the forms.
If you are a brand new business owner, you can apply for a state business license at the Division of Revenue. This is also when you will pay your license fee once you complete your license application online.
The only way to get a business license in Delaware is if you first register your business here. When you organized your business at the Division of corporations, you also received instructions to register with the Office of Worker's Compensation. Make sure to research the information to ensure compliance at every stage.
When you complete your application using the website, you will receive what's known as a "temporary business license." You'll get your permanent version when the Division of Unemployment Insurance has time to finish their review of your application. They'll send you a letter that determines eligibility and a poster that explains the registration process.
You don't have to register with the state if you plan to operate as a sole proprietorship. You may always conduct your business using your name, instead of any fictitious or assumed names you use for trade.
Anytime you decide to use a name other than your own; you'll need to register formally with Delaware. The same holds if you are a limited liability company, partnership, corporation, or nonprofit. In that case, you have to file the required documents of incorporation with the Division of Corporations.
Choosing the best type of business for your new venture is very important. If you need any more information at all on how to do this, check out the page "How to Form a New Business Entity in Delaware" on the official website.
You may decide to use a fictitious name in place of your name when you pick a sole proprietorship. If that's the route you take, you'll have to register the "Fictitious Name Certificate" at your county's Superior Court Prothonotary's (or Chief Clerk) office.
You may also use a fictitious name when registering an LLC, limited or liability partnership, or a nonprofit. If you need a "Doing Business As" (or DBA) form, call one of the following numbers. Kent County: (302) 739- 3184 or Sussex County: (302) 556-5742. You can also find an official application on the court website.
If your business is in Delaware and has employees, there are a few other general requirements for registration.
The IRS has a mandate that requires all business owners to keep a record of all employees for a period of at least the last four years. These are vital records that allow you to prepare all financial statements, including your deductible expenses and tax returns. Your employees, for their part, must fill out a W-4 form when you hire them. Then, as the employer, you must send that W-4 form to the IRS so that it documents the hiring and the tax withholding accurately.
You'll also need to submit federal tax and wage statements (Form W-2) to the Social Security Administration at the end of February for the prior-year period. Form W-2 is a summary report of all paid wages and withheld taxes for every employee. As the employer, you must send that Form to each worker by January 31, following the reporting period.
All Delaware employers conducting business in the state must issue all of their new employees, whether they hold citizenship status or not, an I-9 Form. Make sure that all new workers complete this form within the first three days of your hire. You'll need to complete the form for all new employees.
All businesses operating in Delaware have to report their new hires or any re-hires within the first 20 days since they are brought to work. You'll need to document their full name, complete address, and their social security number. You can fax or mail that report to the New Hire Unit for compliance purposes.
Any business who operates in Delaware and has employees will need to pay the state's unemployment insurance tax. You'll need to register with the Division of Unemployment Insurance to comply. A further requirement is to pay Workers' Compensation Insurance taxes in Delaware on behalf of all employees. Ensure all forms are submitted on time and are filled out accurately to avoid delays in processing.
You'll need to register with the Office of Worker's Compensation if you want to get Worker's Compensation Insurance. You also need all pertinent general liability and business insurance policies.
With a thorough understanding of the fundamentals, you'll be able to keep your business up to date and compliant. If you have employees, it's worth reading up on the benefits and costs of the various state funds. Applying for business licensing is simply the first step in the process of starting your new business. Use the information above to ensure you don't miss any important decisions or registrations.
As an employer and business owner, you're responsible for all Forms and registrations. Prepare your documentation and electronically file to save time. You now have a high-level overview of all the business documentation requirements for the state of Delaware. Please also refer to the official documentation for any questions you still have.
Yes. Yes! Every Delaware business must apply for a state license from the Department of Finance. The Department of Finance now offers an online application system, One Stop. This allows you to apply online for all your business license needs. After you submit the online application, you'll receive a temporary license for your business that will be valid until you get your official license by mail.
If you operate within the city limits, most cities and municipalities in Delaware will require you to register your business. To find out if they require a local business license, all businesses should visit the website of their respective cities.
The fees charged vary depending on where the business is located. The state license costs $75 per year for the first location, and $25 for each additional. Additional fees and permits may be required if your industry has been regulated by the state. In Delaware, you will also need to pay monthly or quarterly fees based on gross receipts. The cost of city business licenses varies depending on the local regulations. However, most require annual registration. The type of business and industry the license covers will determine the cost. The local government websites can provide valuable information about the fees associated with licensing for your industry. Click on the name of your city to find out what fees you will need.
Different licenses will require different information. However, you will generally need to provide the following:
You will need to provide a copy your Workers Compensation Insurance Policy and information about the number of employees, as well as the payroll information, for the past five years, in order to complete the Delaware state business license application.
