New York vs Delaware LLC Formation
Compare costs, benefits, and requirements for forming your business in New York versus Delaware. Make an informed decision with our detailed state-by-state comparison.
New York
Formation Costs
Processing Time
5-7 business days
Advantages
- Global business center
- Access to capital markets
- Diverse talent pool
- International connections
- Strong legal system
Disadvantages
- Publication requirement for LLCs
- High taxes and fees
- Complex regulations
- High operating costs
- Competitive environment
Best For
Financial services, media companies, international businesses, fashion industry
Delaware
Formation Costs
Processing Time
5-7 business days
Advantages
- Court of Chancery for business disputes
- Strong privacy protections
- Business-friendly laws
- No state sales tax
- Flexible corporate structure
Disadvantages
- High franchise tax for large companies
- Must have registered agent in Delaware
- $300 annual franchise tax for LLCs
- May need to qualify in home state
Best For
Corporations seeking investment, businesses valuing legal precedent and privacy
Quick Comparison
| Feature | New York | Delaware |
|---|---|---|
| LLC Formation Fee | $200 | $90 |
| Corporation Formation Fee | $125 | $89 |
| Annual Report Fee | $9/year | $300/year |
| Processing Time | 5-7 business days | 5-7 business days |
| Best For | Financial services, media companies, international businesses, fashion industry | Corporations seeking investment, businesses valuing legal precedent and privacy |
Our Recommendation
Both New York and Delaware offer unique advantages for business formation. The best choice depends on your specific business needs, budget, and long-term goals.
Detailed Analysis
Understanding the key differences between New York and Delaware
Formation Costs Comparison
When comparing New York and Delaware for business formation, initial costs are often a primary consideration. New York charges $200 for LLC formation, while Delaware requires $90. However, don't forget to factor in annual fees:New York has an annual report fee of $9, compared to $300 in Delaware.
Tax Considerations
Tax implications vary significantly between states. New York has state income tax that must be considered. Delaware imposes state income tax on businesses.
Business Environment
Both states offer unique business environments. New York is particularly attractive for Financial services, media companies, international businesses, fashion industry. On the other hand, Delawareexcels for Corporations seeking investment, businesses valuing legal precedent and privacy. Consider where your customers are located and whether you'll need to register as a foreign entity in other states.
Privacy and Asset Protection
Delaware also offers excellent privacy and asset protection benefits. These factors can be crucial for certain types of businesses or investors.
Next Steps
Ready to form your business?
Now that you've compared New York and Delaware, you're ready to make an informed decision about where to form your business. We can help you form your LLC or Corporation in either state with our professional filing service.