 Delaware |  Texas | |
|---|---|---|
| All-in to start with usOur $40 fee with the EIN, the registered agent for the first year, and the state fee. | $195 | $392 |
| State filing fee | $110 | $307 |
| Typical approval time | 2–3 weeks (expedite available) | 3–5 business days |
| What the state asks each year | Franchise tax $300 | Franchise tax report (no tax under threshold) |
| Yearly state cost, about | $300 | $0 |
| Total over 5 years, aboutFormation, then four years of registered agent ($45) and state fees. Excludes bookkeeping and IRS filings, which are the same in every state. | $1,575 | $572 |
| State income tax on wages | Yes | None |
| Owners in the public formation document | Not listed | Can be listed |
| Newspaper publication after formation | No | No |
Delaware against Texas
Advantages
- Cheaper to form: $110 state fee against $307 in Texas.
- Owners are not named in the public formation document.
- The standard for companies that will raise money from investors, with a specialised business court (the Court of Chancery).
Disadvantages
- About $300 a year more to keep than Texas (franchise tax $300).
- Slower approval: usually 2–3 weeks (expedite available).
- Has a state income tax, though it normally only reaches income connected to the state.
Texas against Delaware
Advantages
- No yearly state fee (franchise tax report (no tax under threshold)), against about $300 a year in Delaware.
- Faster approval: usually 3–5 business days, against 2–3 weeks (expedite available).
- No state income tax on wages.
- A large economy, and a name that reads well on an invoice.
Disadvantages
- Costs $197 more to form than Delaware.
- Owners can appear in the public state record.
Which one to choose
Choose Delaware if you plan to raise money from investors or set up a holding structure: that is what Delaware is for. For an online or service business owned from abroad, Texas is usually the better fit, and over five years it costs about $1,003 less.
If your company will have staff, an office or a warehouse in one particular state, form it there: otherwise you register in that state anyway. Federal taxes and IRS filings are the same in every state.
General information about the states, not legal or tax advice. State fees change occasionally; the price at checkout is the price you pay.
Delaware or Texas
Questions about this comparison
Is a Delaware or a Texas LLC cheaper?
Delaware is cheaper to form: $195 all-in with us, against $392. Each year after, Delaware costs the state about $300 and Texas about $0, plus $45 for the registered agent.
Which is faster, Delaware or Texas?
Delaware usually approves an LLC in 2–3 weeks (expedite available), Texas in 3–5 business days. We file within 48 hours of payment in either state.
Can a non-US resident form an LLC in Delaware or Texas?
Yes, in both. Neither state asks for citizenship or residency, and the registered agent we include provides the in-state address. The EIN is included without an SSN.
Another pair