Do I need a state tax registration before opening?

Delaware State Tax Registration Before Opening a Business

In Delaware, whether you need to register for state taxes before opening your business depends on your business activities and structure.

When State Tax Registration Is Required

• Sales Tax: Delaware does not impose a state sales tax, so you do not need to register for sales tax purposes.
• Employer Taxes: If you plan to hire employees, you must register for Delaware employer taxes, including withholding tax and unemployment insurance tax, before you start payroll.
• Gross Receipts Tax: Delaware businesses generally must pay a gross receipts tax based on their business revenue. You need to register with the Delaware Division of Revenue to report and pay this tax.
• Business License: Most businesses must obtain a Delaware business license from the Division of Revenue, which serves as a form of registration for tax purposes.

Operational Steps Before Opening

• Register Your Business: File your business formation documents with the Delaware Division of Corporations.
• Apply for a Delaware Business License: This is required annually and enables you to legally operate and report taxes.
• Employer Registration: If hiring, register for employer withholding and unemployment insurance taxes with the Delaware Office of Unemployment Insurance.
• Set Up Bookkeeping and Payroll: Implement systems to track gross receipts and manage payroll tax compliance.

As of 2026, completing these registrations before opening ensures your business complies with Delaware tax and licensing requirements, avoiding penalties and delays in operations.