New Jersey LLC vs Delaware LLC (2026)
Compare New Jersey LLC vs Delaware LLC — filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
| Factor | New Jersey | Delaware |
|---|---|---|
| Filing Fee | $125 | $90 |
| Processing Time | 3 day(s) | 7 day(s) |
| Annual Report Fee | $75 | $300 |
| Annual Report Due | Anniversary month | June 1 |
| State Income Tax | Yes | No |
| Anonymous LLC | No | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A — you're in your home state | ~$125 + registered agent ~$150/yr |
Verdict: New Jersey wins for most businesses
For most New Jersey-based small businesses, forming locally in New Jersey is the better choice due to lower total costs and simpler compliance. Delaware only makes sense if you specifically need anonymous ownership, have venture capital investors, or plan to go public.
Filing Fees & Formation Costs
Delaware has a slightly lower filing fee at $90 compared to New Jersey's $125, saving you $35 upfront. However, if you form in Delaware but operate in New Jersey, you'll need to register as a foreign LLC in New Jersey for an additional $125. This means your total formation cost would be $215 ($90 + $125) instead of just $125 for forming locally. The supposed Delaware savings quickly disappear once you factor in the required foreign registration.
Taxes: New Jersey vs Delaware
New Jersey imposes a state income tax on LLC profits, while Delaware has no state income tax for LLCs. However, Delaware charges a $300 annual franchise tax, which is significantly higher than New Jersey's $75 annual report fee. If you operate in New Jersey but form in Delaware, you'll still pay New Jersey taxes on your business income anyway. For most small businesses, the tax advantages of Delaware are minimal or nonexistent.
Privacy & Asset Protection
Delaware allows anonymous LLC formation where member names aren't publicly disclosed, while New Jersey requires member information on public filings. Both states offer strong charging order protections for LLC members' personal assets. Delaware's court system has more developed business law precedents, but New Jersey's asset protection laws are also robust. Unless anonymity is critical to your business, New Jersey provides adequate privacy and protection for most small businesses.
Annual Maintenance Costs
New Jersey requires a $75 annual report due in your anniversary month, making ongoing compliance simple and affordable. Delaware charges $300 annually for its franchise tax, plus you'll need a registered agent service costing around $150 per year. If you form in Delaware but operate in New Jersey, you'll pay both states' annual fees totaling $450+ per year. Over time, these higher maintenance costs in Delaware significantly outweigh any initial filing fee savings.
When Delaware Actually Makes Sense
Delaware is worth considering if you need anonymous ownership for privacy reasons, have venture capital investors who require Delaware incorporation, or plan to go public eventually. Delaware's specialized Court of Chancery and extensive business law precedents also benefit complex business structures or those expecting significant litigation. For simple single-member or family LLCs operating primarily in New Jersey, these advantages rarely justify the extra costs and complexity of foreign registration.