Nevada LLC vs Delaware LLC (2026)
Compare Nevada LLC vs Delaware LLC — filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
| Factor | Nevada | Delaware |
|---|---|---|
| Filing Fee | $425 | $90 |
| Processing Time | 1 day(s) | 7 day(s) |
| Annual Report Fee | $350 | $300 |
| Annual Report Due | Anniversary month | June 1 |
| State Income Tax | No | No (but franchise tax applies) |
| Anonymous LLC | Yes | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A — you're in your home state | ~$220 + registered agent ~$200/yr |
Verdict: Nevada wins for most businesses
For most Nevada-based small businesses, forming locally in Nevada is the better choice due to no state income tax and avoiding foreign registration fees. Delaware only makes sense if you need specific investor requirements or enhanced privacy features that justify the additional complexity and costs.
Filing Fees & Formation Costs
Nevada charges $425 to form an LLC while Delaware only costs $90 upfront. However, if you operate in Nevada but form in Delaware, you'll need to register as a foreign LLC in Nevada for approximately $220, plus hire a Delaware registered agent for around $200 annually. This means Delaware formation actually costs more in the first year ($510+ vs $425) for Nevada-based businesses.
Taxes: Nevada vs Delaware
Nevada has no state income tax for LLCs, making it extremely tax-friendly for business owners. Delaware also has no state income tax on LLCs, but charges an annual franchise tax of $300 for LLCs with gross receipts over $20 million. For most small businesses, both states offer favorable tax treatment, though Nevada's complete absence of state income tax gives it a slight edge for growing companies.
Privacy & Asset Protection
Both Nevada and Delaware allow anonymous LLC formation, meaning you don't have to publicly disclose member names in state filings. Nevada has particularly strong asset protection laws with robust charging order protections that limit creditors' ability to seize LLC interests. Delaware also offers solid asset protection, but Nevada's laws are generally considered more comprehensive for single-member LLCs and family businesses.
Annual Maintenance Costs
Nevada requires an annual report fee of $350 due in your anniversary month. Delaware's annual report costs $300 and is due by June 1st each year. However, if you form in Delaware but operate in Nevada, you'll pay both states' fees plus ongoing registered agent costs in Delaware (around $200 annually), making your total annual cost approximately $750+ versus just $350 for a Nevada LLC.
When Delaware Actually Makes Sense
Delaware formation makes sense for Nevada businesses in specific situations: if you're raising venture capital (many investors prefer Delaware entities), planning to go public eventually, or need enhanced privacy beyond what Nevada offers. Large multi-state operations may also benefit from Delaware's well-established business court system and extensive case law. For typical small businesses operating primarily in Nevada, these advantages rarely justify the additional complexity and costs.