New York LLC vs Delaware LLC (2026)
Compare New York LLC vs Delaware LLC — filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
| Factor | New York | Delaware |
|---|---|---|
| Filing Fee | $200 | $90 |
| Processing Time | 7 day(s) | 7 day(s) |
| Annual Report Fee | $9 | $300 |
| Annual Report Due | Anniversary month (biennial) | June 1 |
| State Income Tax | Yes | No (but you'll still pay NY taxes) |
| Anonymous LLC | No | Yes |
| Publication Requirement | Yes | No |
| Foreign LLC Cost (if forming out-of-state) | N/A — you're in your home state | ~$250 + registered agent ~$150/yr |
Verdict: New York wins for most businesses
For most small businesses operating in New York, forming locally is far more cost-effective than Delaware due to foreign registration requirements and higher ongoing fees. Delaware only makes sense if you need anonymous ownership, have sophisticated investors, or operate in multiple states.
Filing Fees & Formation Costs
Delaware's $90 filing fee appears cheaper than New York's $200, but this is misleading for New York-based businesses. If you form in Delaware but operate in New York, you must register as a foreign LLC in New York (around $250) plus maintain a registered agent in Delaware ($150+ annually). This makes Delaware formation actually cost $490+ in the first year versus $200 for a direct New York LLC.
Taxes: New York vs Delaware
Delaware has no state income tax on LLCs, but New York businesses still pay New York state taxes regardless of where they're formed. Delaware charges a minimum $300 annual franchise tax, while New York only requires a $9 biennial report fee. For tax purposes, forming in Delaware provides no benefit for New York-based businesses and actually increases your annual tax burden.
Privacy & Asset Protection
Delaware allows anonymous LLC formation where member names aren't publicly disclosed, while New York requires member disclosure. However, both states offer similar charging order protections for LLC assets. Delaware's privacy advantage is the main legitimate reason New York businesses consider formation there, but this benefit comes at significant ongoing cost for most small businesses.
Annual Maintenance Costs
New York LLCs pay just $9 every two years for their biennial report, making annual costs around $4.50. Delaware LLCs pay $300 annually plus registered agent fees of $150+, totaling $450+ per year. Over five years, a Delaware LLC costs roughly $2,250+ more than a New York LLC in maintenance fees alone, not including the initial foreign registration costs.
When Delaware Actually Makes Sense
Delaware formation makes sense for New York businesses in limited situations: when you need anonymous ownership for privacy reasons, when sophisticated investors or lenders require Delaware formation, or when you plan to operate in multiple states anyway. For typical small businesses, consultants, or local service providers operating primarily in New York, the extra costs far outweigh any benefits.