Ohio LLC vs Delaware LLC (2026)
Compare Ohio LLC vs Delaware LLC — filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
| Factor | Ohio | Delaware |
|---|---|---|
| Filing Fee | $99 | $90 |
| Processing Time | 3 day(s) | 7 day(s) |
| Annual Report Fee | $0 | $300 |
| Annual Report Due | None required | 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 | ~$99 + registered agent ~$150/yr |
Verdict: Ohio wins for most businesses
For most Ohio-based small businesses, forming locally in Ohio is the smarter choice due to lower ongoing costs and no foreign registration requirements. Delaware only makes sense if you need anonymous ownership or have venture capital investors who specifically require Delaware formation.
Filing Fees & Formation Costs
While Delaware's filing fee is $9 cheaper at $90 versus Ohio's $99, this savings disappears quickly. If you form in Delaware but operate in Ohio, you must also register as a foreign LLC in Ohio for an additional $99. Plus, Delaware requires a registered agent service at roughly $150 per year since you won't be physically present in the state. Your total first-year costs with Delaware would be around $339 compared to just $99 in Ohio.
Taxes: Ohio vs Delaware
Ohio 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 often exceeds what most small Ohio LLCs would pay in state income tax. If you operate in Ohio but form in Delaware, you'll still owe Ohio state taxes on income earned within the state. Delaware's tax advantage primarily benefits high-profit businesses or those with income from multiple states.
Privacy & Asset Protection
Delaware allows anonymous LLC formation, meaning your name won't appear in public records if you use a nominee registered agent. Ohio requires member names to be disclosed in the Articles of Organization. Both states offer strong asset protection through charging order protection, which prevents creditors from seizing LLC assets directly. Delaware's privacy advantage is significant if anonymity is crucial for your business, but this benefit comes at the cost of ongoing registered agent fees and foreign registration requirements.
Annual Maintenance Costs
Ohio requires no annual report and charges no ongoing state fees, making it extremely cost-effective for long-term operations. Delaware charges $300 annually for its franchise tax report due every June 1st. If you form in Delaware while operating in Ohio, you'll also need to maintain a registered agent in Delaware (~$150/year) and potentially file reports in both states. Over five years, Ohio costs remain at $99 total, while Delaware would cost approximately $2,589 including foreign registration and registered agent fees.
When Delaware Actually Makes Sense
Delaware formation is justified for Ohio businesses in specific situations: if you need anonymous ownership for privacy reasons, plan to raise venture capital (many investors prefer Delaware entities), or operate across multiple states where Delaware's tax structure provides advantages. Large businesses with complex ownership structures also benefit from Delaware's specialized Court of Chancery and extensive business law precedents. For typical small businesses operating solely in Ohio, these benefits rarely outweigh the additional costs and complexity.