 Delaware |  Utah | |
|---|---|---|
| All-in to start with usOur $40 fee with the EIN, the registered agent for the first year, and the state fee. | $195 | $144 |
| State filing fee | $110 | $59 |
| Typical approval time | 2–3 weeks (expedite available) | 1–3 business days |
| What the state asks each year | Franchise tax $300 | Annual report $18 |
| Yearly state cost, about | $300 | $18 |
| 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 | $396 |
| State income tax on wages | Yes | Yes |
| Owners in the public formation document | Not listed | Can be listed |
| Newspaper publication after formation | No | No |
Delaware against Utah
Advantages
- 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
- Costs $51 more to form than Utah.
- About $282 a year more to keep than Utah (franchise tax $300).
- Slower approval: usually 2–3 weeks (expedite available).
Utah against Delaware
Advantages
- Cheaper to form: $59 state fee against $110 in Delaware.
- Cheaper to keep: about $18 a year to the state, against $300 in Delaware.
- Faster approval: usually 1–3 business days, against 2–3 weeks (expedite available).
Disadvantages
- 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, Utah is usually the better fit, and over five years it costs about $1,179 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 Utah
Questions about this comparison
Is a Delaware or a Utah LLC cheaper?
Utah is cheaper to form: $144 all-in with us, against $195. Each year after, Delaware costs the state about $300 and Utah about $18, plus $45 for the registered agent.
Which is faster, Delaware or Utah?
Delaware usually approves an LLC in 2–3 weeks (expedite available), Utah in 1–3 business days. We file within 48 hours of payment in either state.
Can a non-US resident form an LLC in Delaware or Utah?
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