Which state is cheaper for an LLC: Massachusetts or Delaware?

Over 5 years, Delaware is cheaper with an estimated total cost of $1,805, compared to $2,695 for Massachusetts, saving you approximately $890.

Can I register in Delaware if I live and work in Massachusetts?

You can form an entity in Delaware, but if your principal residence or business operations are in Massachusetts, statutory nexus rules require you to register as a Foreign LLC in Massachusetts. In Massachusetts, the foreign filing fee is $500 plus annual foreign maintenance of $500/year.

2026 Head-to-Head Statutory Comparison

Massachusetts vs Delaware LLC

Massachusetts has one of the highest annual report fees in the nation ($500/yr), whereas Delaware charges $300/yr franchise tax.

5-Year Cost Verdict: Delaware saves an estimated $890 over 5 years.

Massachusetts Model →Delaware Model →

Direct Side-by-Side Fee Matrix

Statutory 2026 Fee Schedules

Metric	Massachusetts	Delaware
Initial State Filing Fee	$500	$110
Annual Report Fee & Frequency	$500 (annual)	$0 (none)
Annual Franchise Tax	$0 / None	$300/yr
5-Year Estimated True Cost	$2,695	$1,805
Public Member Anonymity	Public	High (Anonymous)
Foreign Qualification Fee	$500 upfront ($500/yr)	$200 upfront ($300/yr)

The Reality of Forming Out-of-State

Operating in Massachusetts with a Delaware LLC?

If you live or conduct physical business in Massachusetts and form in Delaware, you must register as a Foreign LLC in Massachusetts. This means paying Delaware's formation fee ($110) PLUS Massachusetts's foreign filing fee ($500) and two annual registered agent fees.