Clipboard with a blank form, a pen and a small plant on a desk, Nevada LLC vs Delaware LLC: Costs and Taxes Compared

Nevada LLC vs Delaware LLC: Costs and Taxes Compared

Last verified: November 5, 2026

Short answer: form in Nevada if you live and sell mostly in Nevada, form in the state where you operate if that is anywhere else, and pay for Delaware only when an investor or your lawyer asks for it. Forming a Nevada LLC to save tax does not work for an owner who runs the business from another state, because that state still wants its own registration and its own tax. The numbers below come from the Nevada and Delaware statutes, not from formation-service marketing.

What Each State Charges

These are the statutory amounts for a plain LLC with no employees and under the Nevada Commerce Tax threshold. Registered agent fees are a market price and are not in either statute.

ItemNevada LLCDelaware LLCSource
Filing to form$75 articles of organization$70 certificate of formationNRS 86.561(1)(a); 6 Del. C. 18-1105(a)(3)
List of managers$150 initial list with the articles, then $150 every yearNo list or annual report in the LLC ActNRS 86.263(4); 6 Del. C. chapter 18
State business license$200 a yearNot part of the LLC ActNRS 76.100 and 76.130
Annual state taxNone on an LLC beyond the list and license$400 a year, due June 16 Del. C. 18-1107(b) and (c)
Recurring total$350 ($150 list plus $200 license)$400Sum of the rows above
Late or in default$300 reinstatement fee plus back fees and penalties$200 penalty plus 1.5% interest a month; good standing lostNRS 86.276; 6 Del. C. 18-1107(c), (e) and (h)

Your first year in Nevada is $425: $75 articles, $150 initial list and $200 license. In Delaware you pay $70 at filing and the first $400 tax on June 1 of the year after you form. The Delaware tax reads $400 in the statute as currently published; the Division of Corporations fee pages could not be read when we checked, so confirm the amount on your annual statement. Both states require a registered agent with a physical address in that state (NRS chapter 77; 6 Del. C. 18-104), so a commercial agent is the practical choice if you do not live there. Our guide to Nevada registered agent requirements covers that side.

A Delaware LLC Run From Nevada Pays Both

This is the mistake that makes the Delaware choice cost the most. A Delaware LLC that does business in Nevada must register as a foreign LLC before it starts (NRS 86.544), pay Nevada the same $75 registration fee, file its own $150 initial and annual lists (NRS 86.5461(3)), and hold the $200 state business license (NRS 76.100). Delaware still wants its $400 tax on top.

ItemNevada LLC run in NevadaDelaware LLC run in Nevada
Formation filing$75$70 in Delaware plus $75 foreign registration in Nevada
Initial list$150$150
State business license$200$200
Cost to get started$425$495
Recurring each year$350$750 ($150 list, $200 license, $400 Delaware tax)

The totals are our arithmetic on the statutory fees above, before registered agent charges, which double when you need an agent in both states. See the Nevada foreign LLC registration guide for the filing itself.

Reverse case: if you live outside Nevada and form in Nevada, you register in your home state as a foreign LLC as well. Nevada's own rule shows the mechanism (NRS 86.544 above); your state's Secretary of State publishes its own registration fee and any annual tax. Look that up before you file anywhere.

Taxes: What Nevada Removes and What It Does Not

Nevada has no individual income tax and no corporate income tax (Nevada Department of Taxation: income tax in Nevada). It does charge two business taxes that matter for the right business:

Delaware does not tax an LLC like a corporation. Delaware classifies an LLC as a partnership for its own taxes unless the LLC is classified otherwise for federal income tax purposes (6 Del. C. 18-1107(a)). A single-member or partnership LLC therefore pays the flat annual tax and its owners report the profit on their own returns.

Our reasoning, not a statute: a Nevada LLC owned by someone who lives and works in another state does not escape that state's income tax, because the owner's profit still lands on a return in the home state. The Nevada saving is real only on profit Nevada would otherwise have taxed, which is why it helps a Nevada-based business and rarely helps anyone else. A CPA who files returns in your home state can tell you the number for your case.

Privacy: Not the Nevada Advantage It Is Sold As

Nevada's initial and annual lists must name every manager, or the managing members if there is no manager, with an address for each (NRS 86.263(1)). A member-managed Nevada LLC therefore puts its members on the public list. The Delaware certificate of formation needs only the LLC's name and the registered agent's name and address (6 Del. C. 18-201(a)), and the LLC Act has no list. On public-record exposure, Delaware gives you less to hide than Nevada does. If privacy is your reason, a manager structure or a registered-agent address does more than the choice of state.

Courts and Investors: The Real Reason Delaware Exists

Delaware lets an action to interpret or enforce an LLC agreement be brought in the Court of Chancery (6 Del. C. 18-111). That matters when members or investors want their rights decided under Delaware law and in front of its courts. It is a reason to pay for Delaware if a named investor has asked for it, and no reason if nobody has.

Moving an LLC into or out of Delaware later is a separate filing; the Delaware statute lists $180 for a certificate of domestication, transfer or conversion (6 Del. C. 18-1105(a)(3)), and the other state charges its own fee. So decide before you file if a raise is likely in the next year or two, and ask the investor's lawyer, not a formation service, which state they require.

Which State Fits

  • Form in Nevada: you live in Nevada, your customers are mostly in Nevada, and you will not raise outside capital. You pay $425 once and $350 a year, with no second state to register in.
  • Form where you operate: you live and work in another state. Compare that state's own LLC fee and annual tax first; adding Nevada or Delaware on top adds a second set of fees and does not remove the first.
  • Form in Delaware: an investor, a lender or your attorney has named Delaware, and you have priced the $400 annual tax plus an agent in both states.
  • Skip both: if you have no clear reason for an out-of-state LLC, you are paying for a second filing system to maintain.

Once you decide, our Nevada LLC guide walks through the Nevada filing, and the comparison of Nevada LLC formation services shows what a filing service adds. If you are also weighing tax status, read Nevada LLC vs S Corp, and note the yearly deadlines in the annual list and license renewal guide.

Who Should Check This With a Professional

A CPA licensed where you live should price the home-state tax on a Nevada or Delaware LLC. An attorney should advise on investor requirements, operating agreement terms and the Delaware courts point. The statute figures here are filing fees and tax amounts, not advice on which state minimizes your total.

Disclaimer

This article is general information, not legal or tax advice. Fees and tax amounts change by statute; confirm them with the Nevada Secretary of State and the Delaware Division of Corporations before you file.

Sources

Keep exploring: related Nevada guides