Delaware vs District of Columbia LLC Cost (2026): $390 vs $249
Side-by-side LLC formation cost comparison for Delaware and District of Columbia: filing fees, annual report costs, processing time, and tax implications.
Forming an LLC in District of Columbia costs $249 in year one — $141 cheaper than Delaware ($390).
Delaware
District of Columbia
Lower CostFull LLC Cost Comparison: Delaware vs District of Columbia
| Factor | Delaware | District of Columbia |
|---|---|---|
| State filing fee (one-time) | $90 | $99 |
| Annual report fee | $300 / per year | $300 / every 2 years |
| Processing time | 1–2 business days | 5–10 business days |
| State income tax | Yes | Yes |
| First-year total | $390 | $249 |
District of Columbia saves you $141 in year one compared to Delaware.
Delaware LLC Notes
Delaware is a top choice for startups due to business-friendly courts, though annual franchise taxes can be high.
District of Columbia LLC Notes
DC has a relatively high biennial report fee but low filing cost.
Which State Should You Actually Use?
For most small businesses, form your LLC where you actually do business — not where the filing fee is cheapest. If you operate in Delaware, form there. If you operate in District of Columbia, form there.
- Forming in your home state: Simpler compliance, no registered agent needed in another state, no foreign qualification fees.
- Forming in Wyoming or Delaware: Makes sense for investor-backed startups, multi-member LLCs with complex ownership structures, or businesses operating in multiple states.
- Key cost trap: If you form in Delaware but operate in District of Columbia, you'll pay both states' fees — eliminating any savings.
Compare More LLC Formation Costs
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