Delaware vs Massachusetts LLC Cost (2026): $390 vs $1000
Side-by-side LLC formation cost comparison for Delaware and Massachusetts: filing fees, annual report costs, processing time, and tax implications.
Forming an LLC in Delaware costs $390 in year one — $610 cheaper than Massachusetts ($1,000).
Delaware
Lower CostMassachusetts
Full LLC Cost Comparison: Delaware vs Massachusetts
| Factor | Delaware | Massachusetts |
|---|---|---|
| State filing fee (one-time) | $90 | $500 |
| Annual report fee | $300 / per year | $500 / per year |
| Processing time | 1–2 business days | 3–5 business days |
| State income tax | Yes | Yes |
| First-year total | $390 | $1,000 |
Delaware saves you $610 in year one compared to Massachusetts.
Delaware LLC Notes
Delaware is a top choice for startups due to business-friendly courts, though annual franchise taxes can be high.
Massachusetts LLC Notes
Massachusetts has the highest LLC formation and annual report fees in the US.
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 Massachusetts, 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 Massachusetts but operate in Delaware, you'll pay both states' fees — eliminating any savings.
Compare More LLC Formation Costs
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