Checklist to Open a Business in Delaware
Generally, most businesses will need to do the following:
- Decide on Business Name and Structure
- Your business name must be unique; i.e. not already registered.
- For more information on types of structures, and types of entities, please visit the IRS webpage on Business Structures
- Sole Proprietors are handled differently than Legal Entities such as Corporations, Limited Liability Company (LLCs), or Partnerships:
- Sole Proprietors (click to read more...)
- Legal Entities such as Corporations, Limited Liability Company (LLCs), or Partnerships (click to read more...)
- Check if the name is available with the Delaware Division of Corporations.
- If you do not plan to file formation documents right away, name reservation is voluntary and a 75.00 fee applies (see step #3 in this link).
- Choose your structure and file your entity with the Division of Corporations:
- Choose your business legal structure and file any necessary formation documents with the Delaware Division of Corporations. Each type of corporation has different ownership, control, liability, and taxation - so it is important to choose the best structure for your business. The Division of Corporations does not provide legal advice; if legal or other professional assistance is required, please engage a qualified professional.
If you choose to be a Sole Proprietor, and your business name will be different than your given name, then you must file with the Prothonotary's Office in all of the Counties you plan to transact business in, to obtain your unique "Doing Business As" Name (DBA). Further, Sole Proprietors do not need to file formation documents with the Division of Corporations, but a Sole Proprietor also does not have certain legal protections (i.e., the owner is personally liable for all business debts). After completing the Prothonotary registration, skip down to Step 2.
- Determine if you need an Employer Identification Number (EIN) from the Internal Revenue Service (I.R.S.).
- Use the Delaware Business One Stop Online system, to get three important tasks accomplished online:
- Obtain your General Business License from the Delaware Division of Revenue.
- If you will have employees, you will need to file a report (UC-1 form) for calculating your Unemployment Insurance liability paid to the Delaware Division of Unemployment Insurance.
- If you will have employees (except in certain situations), you will need to carry Workers' Compensation Insurance.
- Determine if there are additional State of Delaware licensing/certification/or registration requirements (for specific regulated industries) by checking the list of Professions and Industries that are regulated by the State of Delaware.*
- Determine if there are additional federal requirements by consulting the list of Federal regulated industries and contact the appropriate federal agencies.*
- Contact your County, City, and/or Town to find out about local requirements.*
*As you talk with local, state, and federal agencies, be sure to ask if there are any additional requirements for your specific business. These listings, while comprehensive, may not be all-inclusive of every business type.
Checklists for Selected Business Types
Food Establishments, including Restaurant, Bakery, Food Truck, Caterer, Butcher, Frozen Dessert Stand, Food Delivery
1. Call Delaware Division of Public Health, Office of Food Protection, at 302-744-4546 to discuss your idea for a restaurant or food establishment before starting down this list.
2. Decide on a business name and structure as outlined above
3. Register your business as outlined above
4. Obtain other state of Delaware licenses, certifications, or registrations
- Food Establishment License from the Office of Food Protection
- Plumbing Permitting from the Office of Food Protection
- Liquor License, if applicable, from the Alcoholic Beverage Commissioner
- Public Gathering license, if applicable, from the Fire Marshal
5. Obtain local licenses, certifications, or registrations from the Local/Town/County page
General Contractors/Construction, Plumbers, Electricians, or HVACR Firms
1. Decide on a business name and structure as outlined above
2. Register your business as outlined above
3. Obtain other state of Delaware licenses, certifications, or registrations
- Professional Licenses: Electrician, Plumber, HVACR
- If applicable, Plumbing permitting: Commercial
- If applicable, Plumbing permitting: Residential
- If applicable, DNREC Permits
- If applicable, DelDOT Permits
- If applicable, Fire Marshal Permits
- If applicable, be sure to know and follow state and federal regulations on removing asbestos, lead paint abatement, and other regulated practices.
4. Obtain local licenses, certifications, or registrations from the Local/Town/County page
Gas Stations
1. Decide on a business name and structure as outlined above
2. Register your business as outlined above
3. Obtain other state of Delaware licenses, certifications, or registrations
- DNREC Underground Storage Tank Vapor Recovery Permits
- DNREC Underground Storage Tank Infrastructure Registrations
- Optional: Lottery Retailer
- Optional: Selling flowers/plants
4. Obtain local licenses, certifications, or registrations from the Local/Town/County page
Auto Dealers/Repair Shops
1. Decide on a business name and structure as outlined above
2. Register your business as outlined above
3. Obtain other state of Delaware licenses, certifications, or registrations
- DNREC Auto Body Shop
- DNREC Boilers and pressure vessels
- If applicable, DNREC Certified Emission Repair Technicians
- If applicable, DNREC Aboveground storage tank
- If applicable, DNREC Underground Storage Tank Vapor Recovery Permits http://firststeps.delaware.gov/underground_storage_tank_vapor.shtml
- If applicable, DNREC Underground Storage Tank Infrastructure Registrations
- Option: Motor Vehicle Financing
4. Obtain local licenses, certifications, or registrations from the Local/Town/County page
Dry Cleaners
1. Decide on a business name and structure as outlined above
2. Register your business as outlined above
3. Obtain other state of Delaware licenses, certifications, or registrations
4. Obtain local licenses, certifications, or registrations from the Local/Town/County page
Salons/Barber Shops
1. Decide on a business name and structure as outlined above
2. Register your business as outlined above
3. Obtain other state of Delaware licenses, certifications, or registrations
- Salons, Division of Professional Regulation
- Professional Licenses, as applicable:
- If applicable, Body Art establishments
4. Obtain local licenses, certifications, or registrations from the Local/Town/County page
Other Considerations
- If you will have employees, you will need to understand your obligations as an employer regarding withholding taxes.
- Consider your business insurance options in the private market.
- Consider your health care obligations as a small business owner.
- Read more about employer services at the Delaware Department of Labor.
- Browse information on hiring and retaining employees. Review information from the Delaware Department of Labor on labor law in Delaware, and from the U.S. Department of Labor on U.S. Labor Law.
- File for a U.S. Patent or U.S. Trademark.
- Find out Why Businesses Choose Delaware to Incorporate.
- Read about health and safety requirements from the U.S. Occupational and Safety and Health Administration (OSHA).
