Utah LLC vs Delaware LLC (2026)
Compare Utah LLC vs Delaware LLC — filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
| Factor | Utah | Delaware |
|---|---|---|
| Filing Fee | $54 | $90 |
| Processing Time | 1 day(s) | 7 day(s) |
| Annual Report Fee | $18 | $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 | ~$70 + registered agent ~$150/yr |
Verdict: Utah wins for most businesses
For most Utah-based businesses, forming locally in Utah is the clear winner due to lower costs and simpler compliance. Delaware only makes sense if you need anonymous ownership, have sophisticated investors requiring it, or plan to go public eventually.
Filing Fees & Formation Costs
Utah charges just $54 to form an LLC with same-day processing, while Delaware costs $90 and takes up to 7 business days. However, if you form in Delaware but operate in Utah, you'll also need to register as a foreign LLC in Utah (around $70) plus hire a Delaware registered agent ($150+ annually). This means Delaware formation actually costs $310+ in the first year versus Utah's $54.
Taxes: Utah vs Delaware
Utah has a state income tax that applies to LLC profits, while Delaware has no state income tax for LLCs. However, Delaware charges a $300 annual franchise tax regardless of profit, and you'll still pay Utah taxes anyway if you operate there. Delaware also requires you to file annual reports in both states, doubling your compliance burden and costs.
Privacy & Asset Protection
Delaware allows anonymous LLC ownership by not requiring member names on public filings, while Utah requires disclosure of at least one member or manager. Both states offer strong charging order protection for single-member LLCs. Delaware's privacy advantage is significant if anonymity is crucial for your business, but most small businesses don't need this level of privacy protection.
Annual Maintenance Costs
Utah's ongoing costs are minimal with just an $18 annual report due in your anniversary month. Delaware charges $300 annually plus registered agent fees ($150+ per year) if you're out-of-state. If you operate in Utah but formed in Delaware, you'll pay both states' fees annually, totaling $468+ per year versus Utah's $18.
When Delaware Actually Makes Sense
Delaware is worth considering if you need anonymous ownership for privacy reasons, have investors who specifically require Delaware formation, or plan to raise venture capital or go public eventually. Delaware's Court of Chancery provides specialized business law expertise that's valuable for complex transactions. For simple LLCs without these needs, Utah's lower costs and simpler compliance make it the better choice.