Which state is cheaper for an LLC: New Jersey or Delaware?

Over 5 years, New Jersey is cheaper with an estimated total cost of $620, compared to $2,305 for Delaware, saving you approximately $1,685.

Can I register in Delaware if I live and work in New Jersey?

You can form an entity in Delaware, but if your principal residence or business operations are in New Jersey, statutory nexus rules require you to register as a Foreign LLC in New Jersey. In New Jersey, the foreign filing fee is $125 plus annual foreign maintenance of $75/year.

2026 Head-to-Head Statutory Comparison

New Jersey vs Delaware LLC

NJ business owners operating in-state can avoid Delaware's additional annual LLC tax and foreign-qualification overhead by forming locally.

5-Year Cost Verdict: New Jersey saves an estimated $1,685 over 5 years.

New Jersey Model →Delaware Model →

Direct Side-by-Side Fee Matrix

Statutory 2026 Fee Schedules

Metric	New Jersey	Delaware
Initial State Filing Fee	$125	$110
Annual Report Fee & Frequency	$75 (annual)	$0 (none)
Annual Franchise Tax	$0 / None	$400/yr
5-Year Estimated True Cost	$620	$2,305
Public Member Anonymity	Standard	High (Anonymous)
Foreign Qualification Fee	$125 upfront ($75/yr)	$200 upfront ($400/yr)

The Reality of Forming Out-of-State

Operating in New Jersey with a Delaware LLC?

If you live or conduct physical business in New Jersey and form in Delaware, you must register as a Foreign LLC in New Jersey. This means paying Delaware's formation fee ($110) PLUS New Jersey's foreign filing fee ($125) and two annual registered agent fees.