Nebraska vs. Delaware LLC — Cost & Tax Comparison
Delaware is famous for corporate formation, but for Nebraska-based businesses, forming there typically costs more and adds complexity without meaningful benefits. For formation, see our LLC guide. For all comparisons, see overview.
Annual Cost Comparison (NE Resident)
| Cost | Nebraska LLC | Delaware LLC (operating in NE) |
|---|---|---|
| Home state annual/biennial | $6.50/year (NE biennial) | $400/year (DE annual tax) |
| NE foreign registration | N/A | $6.50/year (NE biennial) |
| NE registered agent | $99 | $99 |
| DE registered agent | N/A | $99 |
| NE income tax | Yes (2.46%-5.84%) | Yes — still owed |
| Total annual | $105.50 | $604.50 |
Delaware costs $499 more per year — and you still owe Nebraska income tax on Nebraska-sourced income.
When Delaware Makes Sense
- VC funding expectations ($1M+)
- Complex corporate governance needs (Court of Chancery)
- Pure digital business with no Nebraska presence (rare)
- Series LLC requirements (not available in Nebraska)
Nebraska's Advantages
- Ultra-low maintenance: $6.50/year vs. Delaware's $400/year
- No franchise tax: Delaware charges $400/year just for existing
- Single-state simplicity: One filing, one agent, one set of rules
- Declining rates: LB 754 makes Nebraska taxes cheaper each year
FAQ
My online article says to form in Delaware. Should I?
For a Nebraska-based small business: almost certainly not. You'd pay double the fees and still owe Nebraska income tax. Delaware benefits large corporations and VC-backed startups, not typical small businesses.