The Ultimate Business License Guide for Dover, Delaware (No-Nonsense, Up-to-Date)
Last updated: September 2025
This guide focuses on what you actually need to do to get licensed fast in Dover, DE—without fluff. It covers state and city licensing, permits, taxes, timelines, fees that are known and stable, and where to get help. Every claim links back to an official source you can verify.
Important note about accuracy: Some fees and processes change. Where exact 2025 figures aren’t published by an official source online, we point you directly to the official page to verify. You’ll see links under each point so you can check the latest rules before you spend money.
Quick help (start here)
- Use the Delaware One Stop portal to register and apply for your Delaware state business license and tax accounts: Delaware One Stop (state registration and licensing portal) — official State of Delaware portal.
- Every business operating in Delaware must get a Delaware state business license from the Division of Revenue: Delaware Division of Revenue — Business Licenses — state tax/licensing authority.
- Most businesses inside Dover city limits also need a City of Dover business license: City of Dover — Official Website (Departments/Finance/Business Licensing) — contact Finance for current application and fee schedule.
- Food, childcare, health-related, and similar businesses require state health or professional permits in addition to the business license: Delaware Division of Public Health — Permits and Inspections and Delaware Division of Professional Regulation — License Look-up and Applications.
- Delaware has no state sales tax. Instead, many businesses owe Delaware Gross Receipts Tax (on total receipts): Delaware Gross Receipts Tax — Rates and Filing — official rate tables and filing rules.
- If you hire employees, register for state withholding and unemployment insurance: Delaware One Stop (withholding) and Delaware Department of Labor — Unemployment Insurance for Employers.
- Corporations and LLCs formed in Delaware must file and pay annual taxes to the Delaware Division of Corporations (separate from city/state business licenses): Delaware Division of Corporations — Annual Report and Franchise Tax.
What you need first (the essentials)
- Get a Delaware state business license (required for anyone “doing business” in Delaware), then the City of Dover business license, and only then open your doors. State license is the foundation for tax accounts and other permits.
- Don’t skip zoning and inspections. Dover may require zoning approval, a Certificate of Occupancy, and State Fire Marshal review for many sites.
- Confirm industry-specific permits early (food, alcohol, childcare, healthcare, contractors). These can take longer than the business license itself.
- Plan for taxes. No state sales tax in Delaware, but many sectors owe Delaware Gross Receipts Tax. If you have employees, set up withholding and unemployment insurance at the start.
- Keep an eye on annual Delaware business entity taxes (LLC, corporation) with the Division of Corporations. Those are due even if you made zero revenue.
Why this order? Because these items affect every other step—your EIN, tax registrations, permits, and even your lease and build-out timeline. Doing them first prevents costly do-overs.
Sources:
- Delaware Division of Revenue — Business License overview and tax links: Revenue Homepage
- Delaware One Stop — unified state registration: Delaware One Stop portal
- City of Dover — business licensing and finance contacts: City of Dover — Official Website
- Delaware Division of Corporations — entity, annual reports, franchise taxes: Division of Corporations
Fast path checklist (Dover + Delaware)
Use this as a practical order of operations.
- Name your business and choose an entity (LLC, corporation, etc.). If you’ll use a brand name different from your legal name, file a “Fictitious Name” with the county Prothonotary (for Kent County). Official info: Delaware Courts — Superior Court/Prothonotary.
- Get an EIN from the IRS (free): IRS — Apply for an EIN — federal ID needed for banking, payroll, some permits.
- Register at Delaware One Stop to obtain your Delaware state business license and tax accounts: Delaware One Stop.
- Apply for your City of Dover business license through the Finance Department: City of Dover — Finance Department.
- Confirm zoning, building, and occupancy with Dover (and State Fire Marshal if applicable): City of Dover — Departments (Planning/Inspections) and Delaware State Fire Marshal.
- Add any industry permits (food service, alcohol, childcare, healthcare, professional boards, contractor registration): Delaware Division of Public Health, Delaware Alcoholic Beverage Control (OABCC), Delaware Division of Professional Regulation, Delaware Department of Labor — Contractor Registration & Workplace.
- Set up payroll (if hiring), workers’ comp insurance, gross receipts filings, and bank accounts. Official sources: Division of Revenue — Gross Receipts, Dept. of Labor — Unemployment Insurance, Office of Workers’ Compensation.
What to do if this doesn’t work:
- Use the Delaware One Stop help resources and contact forms: Delaware One Stop — Help/Contact.
- For complex zoning/buildout, schedule a pre-application meeting with Dover Planning/Inspections via the city website: City of Dover — Departments Directory.
- If you’re stuck on entity questions or compliance, talk with a Delaware business attorney or CPA. You can also get free advising through the Delaware Small Business Development Center (SBDC).
Snapshot: What licenses and registrations you’ll likely need
The table below gives you a realistic picture. Confirm requirements using the linked official pages.
| Item | Who needs it | Where to apply | Cost/Notes | Source |
|---|---|---|---|---|
| Delaware State Business License | Anyone “doing business” in Delaware | Delaware One Stop | Most base licenses start at around $75 annually (amounts vary by activity). Verify current fee and 3-year option. | Division of Revenue — Business Licenses |
| City of Dover Business License | Any business operating in city limits (incl. home-based) | City of Dover — Finance | Fees vary by business type/classification. Check the current Dover fee schedule. | City of Dover — Official Website |
| Zoning/Occupancy/Fire Marshal | Brick-and-mortar locations, changes of use | City Planning/Inspections; State Fire Marshal | Fees and inspections vary by use and square footage. | City of Dover (Planning/Inspections) · State Fire Marshal |
| Industry Permits (Food, Alcohol, Childcare, Health, Pros) | Restaurants, food trucks, bars, childcare, health, trades, etc. | DPH, OABCC, DPR | Fees, training, and inspections vary by program. | DPH · OABCC · DPR |
| Tax Accounts (Gross Receipts, Withholding) | Most businesses; all with employees | One Stop/Division of Revenue | Filing frequency based on receipts/payroll. | Gross Receipts — Rates/Filing |
| UI/Workers’ Comp | All employers; most with employees must carry workers’ comp | Dept. of Labor | Rates vary; insurance required once you hire. | DOL — Employers |
| Entity Annual Reports/Taxes | DE-formed LLCs, corporations | Division of Corporations | Delaware LLC/LP tax is $300 due June 1; corp annual report and franchise tax due March 1. | Division of Corporations — Annual Tax |
Notes:
- Delaware has no state sales tax. Many sectors owe Gross Receipts Tax (GRT), which is a tax on total receipts (rate depends on sector). Official rates and exemptions: Gross Receipts Tax — Official Rates.
- The base state business license fee level and availability of a multi-year discount are set by Delaware law and Division of Revenue policy. Always confirm your exact activity code and fee at One Stop or with the Division of Revenue: Business Licensing Overview.
What to do if this doesn’t work:
- If One Stop won’t let you proceed, clear your browser cache, try another browser, or use the One Stop contact options on the portal.
- If you cannot determine the correct activity code for your state business license, contact the Division of Revenue through the official site: Division of Revenue — Contact.
- For City of Dover licensing questions, start with the Finance Department through the city’s website directory: City of Dover — Departments.
Step-by-step: Do this in the right order
1) Pick your legal structure and name (don’t skip the paper trail)
Most local licensing hinges on your legal structure and name. Decide this first.
- Choose an entity (LLC, corporation, etc.). If you form a Delaware LLC or corporation, you will file with the Delaware Division of Corporations: Form an Entity (State of Delaware — Division of Corporations). The state filing fee to form a Delaware LLC is commonly $90 for the Certificate of Formation (verify current fee and optional services). Source: Division of Corporations — Fees.
- Foreign qualification: If you formed your entity in another state but will “do business” in Delaware, you usually must register as a foreign entity with the Delaware Division of Corporations: Foreign Qualification (Division of Corporations).
- Using a trade name (DBA/fictitious name)? Delaware requires a “Trade, Business & Fictitious Name” registration with the Superior Court Prothonotary in the county where you’ll operate (Dover is in Kent County). Instructions and forms are published by the Delaware Courts: Delaware Courts — Prothonotary (Trade, Business & Fictitious Names). Check the Kent County section for location-specific filing details and fees.
- Get your EIN (free) from the IRS: IRS — Apply for an EIN. You’ll need this for banking, payroll, and some state/city filings.
- Bank and insurance: Open a business bank account and speak with an insurance broker about general liability, property, workers’ comp (if hiring), and any industry-specific policies (e.g., liquor liability for bars).
Reality check:
- Out-of-state founders often assume “I formed in Delaware, I’m done.” Not true. The Delaware state business license (tax registration) is a separate requirement from forming an entity. You also need the City of Dover license if you operate within the city.
- Fictitious name filings are separate from trademarks. If you need brand protection, review federal trademark registration at USPTO — Trademarks.
Official sources:
- Division of Corporations: corp.delaware.gov
- Delaware Courts — Superior Court/Prothonotary: courts.delaware.gov
- IRS — EIN: irs.gov/ein
What to do if this doesn’t work:
- If you hit a legal question (multi-owner, investment, stock options), talk with a Delaware business attorney. For free planning help, book with the Delaware SBDC.
2) Get your Delaware state business license (Division of Revenue)
This is required for almost all businesses with activity in Delaware. It also lets you set up tax accounts (gross receipts, withholding).
- Apply online at Delaware One Stop: onestop.delaware.gov. One Stop walks you through the state business license and tax registrations in one session.
- Base fees: Many standard state business licenses start at around $75 per year, depending on activity code and business type. Some categories may have different fees or multi-year options. Confirm your code and exact fee at application. Source: Delaware Division of Revenue.
- Gross Receipts Tax (GRT): Delaware does not impose a sales tax. Instead, many businesses owe Gross Receipts Tax on total receipts. Rates vary by industry. See the official rate tables and filing schedules here: Gross Receipts Tax — Official Rates and Filing.
- Withholding (if you pay employees): Set up employer withholding at the same time through One Stop: Delaware One Stop. Deposit frequencies depend on payroll size; confirm current rules with the Division of Revenue employer withholding guidance: Withholding Tax (Division of Revenue).
- Processing time: Online applications are typically faster than mail. Allow time for account numbers/letters to arrive. If you have a hard opening date, build in a buffer.
Sources:
- Delaware One Stop: onestop.delaware.gov
- Division of Revenue: revenue.delaware.gov
- Gross Receipts Tax: revenue.delaware.gov/gross-receipts-tax/
Real-world example:
- A Dover-based online boutique with no storefront still needs a Delaware state business license and likely owes Gross Receipts Tax on sales receipts, even if customers are out-of-state. Confirm the correct GRT category on the official table and how marketplace facilitator rules apply using the Division of Revenue guidance: Gross Receipts Tax — Guidance and Rates.
What to do if this doesn’t work:
- If you’re unclear on your activity code, contact the Division of Revenue via the contact page: Division of Revenue — Contact.
- If One Stop throws errors, try a different browser or reach out via the One Stop help features: Delaware One Stop — Help.
3) Get your City of Dover business license
Most businesses located within the Dover city limits need a city business license in addition to the state license.
- Apply with the City of Dover Finance Department. Start at the official city site and navigate to Business Licensing within Finance: City of Dover — Finance Department.
- Fees and classes vary by business type, size, and sometimes by location/use. Always download the current application and fee schedule directly from the city’s site or request it from Finance.
- Home-based businesses within Dover city limits typically need a city license and must meet zoning/home occupation rules. Confirm allowed uses with Planning/Inspections: City of Dover — Departments (Planning/Inspections).
- Zoning check before you sign a lease: Dover can require zoning approvals and a Certificate of Occupancy. Contact Planning/Inspections via the city website to verify use by right vs. conditional/special use.
Sources:
- City of Dover (official): cityofdover.com
Reality check:
- City timelines and inspections can push openings by weeks if there’s a buildout, change of use, or parking/signage review. Talk to Planning before your lease starts.
What to do if this doesn’t work:
- Use the city’s department directory to reach Finance for licensing and Planning/Inspections for zoning: City of Dover — Departments.
- If your location is outside city limits (unincorporated Kent County), check Kent County Levy Court Planning Services: Kent County Levy Court — Planning Services to determine county permits instead of city.
4) Zoning, building, and fire approvals (don’t get stuck at inspection)
If you occupy or change any space (retail, office, warehouse, restaurant, salon), expect reviews.
- Planning and Inspections (City of Dover): Confirm zoning, parking, signage, and whether your use is allowed or needs a conditional/special use permit. Start here: City of Dover — Official Website (Departments).
- Certificate of Occupancy (CO): CO is often required before opening. If you’re changing use (e.g., retail to restaurant), you’ll almost certainly need inspections and possibly new permits.
- State Fire Marshal: Many occupancies (assembly, restaurant, daycare, etc.) trigger State Fire Marshal plan review and inspections. Kent County is served by the Delaware State Fire Marshal, Kent County Division. Start at the main site and navigate to your county office: Delaware State Fire Marshal.
- Health inspections: Food establishments, body art, pools, childcare, and certain healthcare operations require inspections by the Delaware Division of Public Health. Learn which permits apply: DPH — Licensure, Permits, and Inspections.
What slows people down:
- Lease signed before zoning review.
- Renovation started before permits.
- Fire protection upgrades (hoods, sprinklers) discovered late.
- Health plan review submitted after construction instead of before.
What to do if this doesn’t work:
- Ask Dover Planning for a pre-application meeting and a checklist specific to your site and use: City of Dover — Departments.
- Coordinate early with the State Fire Marshal (Kent County Division) via the state site: State Fire Marshal.
- For food facilities, file plans with DPH first: DPH — Office of Food Protection.
5) Industry-specific permits and licenses
These are on top of your state and city licenses. Get them early if they apply to you.
| Industry/Activity | Permit/License | Where to apply | Typical notes | Source |
|---|---|---|---|---|
| Food service (restaurant, café, food truck, bakery) | Retail Food Establishment Permit | Delaware Division of Public Health — Office of Food Protection | Plan review often required before buildout; food safety manager training commonly required. | DPH — Food Safety |
| Alcohol sales (on- or off-premise) | Alcoholic Beverage License | Office of the Alcoholic Beverage Control Commissioner (OABCC) | Background checks, floor plans, public notice, and hearings may apply. | OABCC — Licensing |
| Childcare | Child Care License | DPH/Office of Child Care Licensing | Staffing ratios, background checks, facility requirements. | DPH — Child Care Licensing |
| Cosmetology/Barber/Nail/Tattoo | Professional License + Facility Permit (as applicable) | Delaware Division of Professional Regulation (DPR) | Credentialing and inspections may apply. | DPR — Boards and Professions |
| Contractors | State Contractor Registration + Possible trade licenses/permits | Delaware Department of Labor; City/County permits | Delaware’s Contractor Registration Act requires registration with DOL. | DOL — Contractor Registration |
| Healthcare (clinics, dentists, counselors) | Professional License + Facility approvals | DPR; DPH as applicable | Multiple boards and facility rules may apply. | DPR · DPH |
| Tobacco/Vape | Tobacco Retail License (if required) | State authority as applicable; check Division of Revenue/Health pages | Age verification and point-of-sale restrictions. | Division of Revenue |
Always verify the current forms, fees, and timelines on the linked official pages.
What to do if this doesn’t work:
- If you’re unsure which permits you need, call or email the relevant agency using the contact info on the official site (linked above).
- For regulated businesses (food, health), ask for a plan review checklist before you sign a lease.
6) Employer setup (if you will have employees)
Handle these before you run payroll:
- Employer withholding: Register at One Stop for Delaware employer withholding so you can withhold state income tax from employees: Delaware One Stop. Employer guidance: Division of Revenue — Withholding.
- Unemployment Insurance (UI): Register as an employer with the Delaware Department of Labor and learn your UI tax rate and filing cycle: Delaware DOL — Unemployment Insurance for Employers.
- Workers’ Compensation: In Delaware, most employers must carry workers’ comp once they have employees. Buy a policy through a licensed carrier or the assigned risk pool. Learn the rules here: Delaware Office of Workers’ Compensation.
- New hire reporting: Required within a few days of hiring. See Delaware’s new hire reporting info via the Department of Labor: DOL — New Hire Reporting.
What to do if this doesn’t work:
- Use the Delaware One Stop to walk through withholding setup again: onestop.delaware.gov.
- If you can’t determine your UI rate or filing schedule, contact DOL using the employer section on their official site: labor.delaware.gov.
Taxes you’ll actually deal with in Delaware
- No state sales tax. Many businesses are subject to Gross Receipts Tax (GRT). Rates depend on your business category and are applied to total receipts (not profit). Official rate tables and filing schedules: Gross Receipts Tax — Rates & Filing.
- Employer withholding tax if you have employees. Frequency depends on payroll amounts. Employer guidance here: Division of Revenue — Withholding.
- Annual business entity taxes with the Division of Corporations:
- Delaware LLC/LP/GP tax: $300 due June 1 every year. Source: Division of Corporations — LLC/LP/GP Tax.
- Delaware corporation annual report and franchise tax: due March 1 (amount varies by method and share structure). Use the state’s official calculator and instructions: Division of Corporations — Franchise Tax.
- Local taxes: The City of Dover does not impose a local sales tax. Nevertheless, you still need the city business license and may owe local fees (e.g., inspections/permits). Check the city’s Finance and Planning pages: City of Dover — Official Site.
What to do if this doesn’t work:
- If you’re unsure which Gross Receipts category you’re in, contact the Division of Revenue through the official site: revenue.delaware.gov.
- Work with a local CPA who knows Delaware gross receipts and employer withholding rules.
Realistic timelines
Actual times depend on your industry, buildout, and application completeness. Here’s what Dover business owners commonly experience. Always verify current estimates with each agency.
| Task | Typical timeline | Tips | Source |
|---|---|---|---|
| EIN (IRS) | Same day online if information matches IRS records | Apply during IRS hours; ensure legal name matches entity filing | IRS — EIN |
| Delaware State Business License | Often within a few business days via One Stop | Apply early; have EIN, NAICS/activity info ready | Delaware One Stop |
| City of Dover Business License | Varies — allow at least 1–2 weeks, longer if inspections needed | Coordinate with Planning/Inspections and Finance | City of Dover |
| Zoning/CO/Fire Marshal | Ranges from days to several weeks depending on plans/reviews | Do pre-application meetings; submit complete plans | City of Dover · State Fire Marshal |
| Food Service (DPH) | Plan review can add weeks before inspection/permit | Submit plans before buildout; book inspection early | DPH — Food Safety |
| Alcohol License (OABCC) | Can take weeks to months due to hearings/notices | Build your timeline around OABCC process | OABCC |
What to do if this doesn’t work:
- If your opening date is firm, reverse-plan from the longest lead items (alcohol/food/building). Book inspections early.
- Ask agencies about expedited reviews or what makes the “fast lane” (complete plans, stamped drawings, payment method, etc.).
Cost planning (fees you should expect)
Numbers change. The safest way to budget is to use official fee charts and confirm before paying. These line items are commonly part of a Dover launch budget:
| Cost item | Expectation | Where to verify |
|---|---|---|
| Delaware State Business License fee | Many common categories start around $75 per year; confirm exact activity code and 1-year vs. 3-year option | Division of Revenue · Delaware One Stop |
| City of Dover Business License | Varies by classification and business size | City of Dover — Finance |
| Entity filing (Delaware LLC formation) | Common state fee is $90 for the Certificate of Formation (verify) | Division of Corporations — Fees |
| Annual entity taxes | LLC/LP/GP tax is $300 due June 1; corporation annual report/franchise tax due March 1 (amount varies) | Division of Corporations |
| Health/Fire/Building permits | Vary based on occupancy, size, and equipment (e.g., hood systems) | City of Dover — Planning/Inspections · State Fire Marshal |
| Industry permits (food, alcohol, childcare) | Fees differ by permit class and size | DPH · OABCC |
What to do if this doesn’t work:
- If you can’t find a precise fee online, email or call the agency through the official contact page and ask for a written fee quote or the current schedule. Keep it for your records.
Ongoing compliance calendar (don’t miss these)
| Deadline | What is due | Who it applies to | Where to file/pay | Source |
|---|---|---|---|---|
| March 1 | Corporation annual report and franchise tax | Delaware corporations | Division of Corporations — File Annual Report | Division of Corporations |
| June 1 | Delaware LLC/LP/GP franchise tax ($300) | Delaware LLCs/LPs/GPs | Division of Corporations — Pay Franchise Tax | Division of Corporations |
| Varies (monthly/quarterly) | Delaware Gross Receipts Tax return | Businesses subject to GRT | Division of Revenue — Gross Receipts | Division of Revenue |
| Varies (per deposit schedule) | Employer withholding tax deposits | Employers with payroll | Division of Revenue — Withholding | Division of Revenue |
| Annual (check date) | Delaware State Business License renewal | Most businesses | Delaware One Stop | Division of Revenue |
| Annual (check date) | City of Dover business license renewal | Dover businesses | City of Dover — Finance | City of Dover |
What to do if this doesn’t work:
- If you miss a deadline, file/pay as soon as possible and contact the agency via the official site about penalties or abatement options. Keep copies of all correspondence.
Real-world examples (Dover-specific scenarios)
- Downtown coffee shop with seating
- Needs: Delaware state business license; City of Dover business license; zoning/CO; State Fire Marshal review (assembly occupancy); DPH Retail Food Establishment Permit; gross receipts tax account; employer withholding/UI if hiring.
- Timing risk: DPH plan review and fire protection requirements (hood/suppression) take time. Start those first.
- Sources: Delaware One Stop, City of Dover (Planning/Inspections), State Fire Marshal, DPH — Food Safety.
- Home-based online reseller in Dover
- Needs: Delaware state business license; City of Dover business license (home occupation rules); gross receipts tax account.
- No storefront, but GRT may still apply. Verify category and thresholds: Gross Receipts Tax — Official Rates.
- Sources: Delaware One Stop, City of Dover.
- HVAC contractor working across Kent County
- Needs: Delaware state business license; Delaware Department of Labor Contractor Registration; local permits per job (city or county); workers’ comp; withholding/UI if employees.
- Watch-outs: Don’t start work before permits; ensure you understand DOL registration requirements.
- Sources: Delaware One Stop, DOL — Employers/Contractors, City of Dover — Planning/Inspections, Kent County — Permits.
- Counseling practice in a small Dover office
- Needs: Delaware state business license; City of Dover business license; professional licensure (e.g., LPCMH or other board via DPR); CO and possibly Fire Marshal review depending on occupancy load.
- Watch-outs: Ensure every clinician holds the correct DPR license; verify HIPAA/records, and building accessibility.
- Sources: Delaware One Stop, DPR, City of Dover.
Common mistakes to avoid (seen often in Dover and Delaware)
- Signing a lease before confirming zoning and required upgrades.
- Treating Delaware entity formation and Delaware state business licensing as the same thing (they aren’t).
- Ignoring Gross Receipts Tax because “there’s no sales tax.”
- Waiting on health/fire plan reviews until after you build. It’s usually plan review first, build second.
- Not getting the City of Dover license because you already have the state license.
- Using the wrong NAICS/activity code on your state license and tax accounts, causing filing issues later.
- Missing annual Delaware franchise tax/report deadlines (March 1 for corporations, June 1 for LLCs/LPs/GPs).
- Starting work as a contractor before registering with the Department of Labor and pulling local permits.
- Not carrying required workers’ compensation after hiring.
- Forgetting to renew professional licenses (DPR) and local business licenses (City of Dover).
What to do if this doesn’t work:
- If you realize a mistake late, contact the relevant agency and ask for the corrective steps and any penalty relief options. Agencies publish contact details on the official pages linked above.
How to apply — documents and eligibility
- Delaware State Business License (Division of Revenue)
- Eligibility: Anyone doing business in Delaware (sole proprietors, LLCs, corporations, out-of-state companies with activity in DE).
- Documents: EIN (or SSN for sole proprietor), business entity info, business address, business activity/NAICS code.
- Apply: Delaware One Stop.
- Source: Division of Revenue.
- City of Dover Business License
- Eligibility: Businesses operating within Dover city limits (including home-based offices).
- Documents: State business license number, address in city limits, zoning approval/CO if applicable, activity description.
- Apply: City of Dover — Finance.
- Source: City of Dover.
- Industry permits (examples)
- Food service: Plans, equipment specs, food safety manager certification, water/sewer documents, commissary agreement (for trucks), menu.
- Apply: DPH — Food Safety.
- Alcohol: Premises plans, background checks, floor plans, public notice; hearings may apply.
- Apply: OABCC.
- Professional licenses: Education, exams, background checks, references.
- Apply: DPR.
- Contractors: Registration with DOL under Contractor Registration Act; documentation of insurance and other items.
- Apply: DOL — Contractors.
- Food service: Plans, equipment specs, food safety manager certification, water/sewer documents, commissary agreement (for trucks), menu.
What to do if this doesn’t work:
- If you can’t tell what documents you need, download the official application and checklist from the linked program page and contact the office for a pre-application consult.
City vs. State: who does what (quick reference)
| Topic | City of Dover | State of Delaware |
|---|---|---|
| Business license to operate | City license required if inside city limits | State business license required for anyone doing business in DE |
| Zoning/Use/CO | City Planning/Inspections | N/A |
| Fire life safety | State Fire Marshal (covers facilities in Dover) | State authority |
| Health permits | N/A | DPH (state) |
| Professional licenses | N/A | DPR (state) |
| Sales/Gross Receipts Tax | N/A (no local sales tax) | GRT through Division of Revenue |
| Employer UI/Workers’ Comp | N/A | DOL (state) |
| Entity filings/Annual reports | N/A | Division of Corporations |
Sources:
- City of Dover: cityofdover.com
- Division of Revenue: revenue.delaware.gov
- Division of Corporations: corp.delaware.gov
- DPH: dhss.delaware.gov/dph
- DOL: labor.delaware.gov
- DPR: dpr.delaware.gov
- Fire Marshal: statefiremarshal.delaware.gov
Inclusivity, diversity, and accessibility resources in Delaware
Delaware has programs and certifications for diverse, veteran, disabled, immigrant, and LGBTQ+-owned businesses. These help with visibility and contracting.
- Delaware Office of Supplier Diversity (OSD)
- Certifies eligible small, minority-, women-, veteran-, service-disabled veteran-, and disabled-owned businesses for state contracting opportunities.
- Learn eligibility, benefits, and how to apply: Delaware Office of Supplier Diversity — official state site. Also see the Delaware Marketplace vendor registration for procurement notices: MyMarketplace Vendor Registration.
- Delaware Division of Small Business
- Offers counseling, site selector tools, and programs like EDGE Grants that have historically supported startups and innovation companies (verify open application windows and amounts).
- Info hub: Delaware Division of Small Business — Programs & Incentives.
- Delaware SBDC (free advisory)
- Confidential, no-cost advising; help with licensing pathways, realistic financials, and lender readiness.
- Get help: Delaware SBDC.
- Federal certifications and resources
- SBA Woman-Owned Small Business (WOSB/EDWOSB): SBA — WOSB Program.
- SBA 8(a) Business Development (socially and economically disadvantaged): SBA — 8(a) Program.
- SBA HUBZone (location-based, includes some Dover areas — check map): SBA — HUBZone Map.
- Veteran small business certification (VetCert): SBA — Veteran Small Business Certification.
- Accessibility and language access
- State websites increasingly offer translation tools and accessibility features. If you need language help or an accommodation for an in-person city or state office visit, use the contact page on the agency site to request interpretation or ADA accommodations in advance.
- Delaware One Stop: onestop.delaware.gov.
- City of Dover: cityofdover.com.
What to do if this doesn’t work:
- If you’re not sure which certification fits, book time with the Delaware SBDC and OSD. They’ll walk through eligibility and application steps. Keep documentation (tax returns, proof of control/ownership, resumes/licenses) organized for faster reviews.
Dover-specific tips and warnings
- Don’t assume a “quiet” office use is automatically approved. Parking minimums and prior use can complicate things. Check with Planning.
- Food trucks and temporary food operations still need DPH permits. Commissary agreements and approved prep locations are common requirements.
- If you plan to serve alcohol, align your lease and buildout (bar layout, exits, restrooms) with OABCC rules. The alcohol license timing often controls your opening date.
- For home-based businesses, check HOA rules and city zoning for signage, visitors, deliveries, and on-site employees. The city can restrict some of these under home occupation rules.
- Gross Receipts Tax can surprise low-margin retail and service companies. Forecast it in your pricing.
If you’re coming from out-of-state
- If your company already exists in another state, register as a foreign entity in Delaware if you’ll have employees, an office, or ongoing activity here: Division of Corporations — Foreign Entities.
- Even if you formed your company in Delaware purely for legal reasons but run operations elsewhere, you still owe Delaware entity taxes (e.g., LLC $300 by June 1). If you’re actually operating in Delaware (like a Dover office), you also need the Delaware state business license and the City of Dover license. Sources: Division of Corporations, Division of Revenue, City of Dover.
- If you sell into Delaware from outside the state without a physical presence, consult the Division of Revenue about when Gross Receipts Tax applies to your activity: Gross Receipts Tax — Guidance.
What to do if you’re home-based in Dover
- Confirm home occupation rules with Planning/Inspections (noise, traffic, parking, signage, inventory storage).
- Apply for the City of Dover business license and the Delaware state business license through One Stop.
- If you store goods or run equipment at home, check fire code and insurance.
Sources:
- City of Dover: cityofdover.com
- Delaware One Stop: onestop.delaware.gov
What to do if this doesn’t work:
- If zoning is tight, consider a co-working office, commercial kitchen (for food producers), or small flex space that already has the right occupancy.
Frequently asked questions (Delaware- and Dover-specific)
- Do I need both a Delaware state business license and a City of Dover business license?
- Yes, if you operate within Dover city limits. The state license is required for doing business anywhere in Delaware; the city license is required by the city. Sources: Division of Revenue, City of Dover.
- Is there a state sales tax in Delaware?
- No. Delaware has no state sales tax. Many businesses are subject to Gross Receipts Tax on total receipts. Official rates and filing: Gross Receipts Tax.
- When are Delaware entity taxes due?
- Corporations: annual report and franchise tax due March 1. LLC/LP/GP: $300 due June 1. Source: Division of Corporations.
- I’m a food truck. What permits do I need?
- Delaware state business license; City of Dover license (if operating in city); DPH Retail Food Establishment Permit (often requires commissary); possibly Fire Marshal review; local event permits as applicable. Sources: Delaware One Stop, DPH — Food Safety, City of Dover.
- I formed a Delaware LLC for an online business. Do I still need the state business license?
- If you’re “doing business” in Delaware (e.g., office, employees, operations), yes. If you’re formed in Delaware but operate entirely elsewhere, you still owe Delaware entity franchise tax, but you may not need the Delaware state business license unless you conduct Delaware activity. Confirm with the Division of Revenue: revenue.delaware.gov and your CPA. Entity taxes: Division of Corporations.
- How do I find the right Gross Receipts Tax rate?
- Use the official category list and rate tables published by the Division of Revenue: Gross Receipts Tax — Official Rates.
- Do contractors need a special license?
- Delaware requires contractor registration with the Department of Labor under the Contractor Registration Act; you also need a Delaware state business license. Local building permits apply per job. Start here: DOL — Contractor Registration and Delaware One Stop.
- What if my business is home-based in Dover?
- You still need the City of Dover business license and to follow home occupation rules. Confirm allowed activities with Planning/Inspections: City of Dover.
- Who regulates alcohol licenses?
- The Office of the Alcoholic Beverage Control Commissioner (OABCC) handles alcohol licensing. Expect notices and possible hearings. Start here: OABCC — Licensing.
- Where can I get free, credible help with planning and licensing?
- Delaware SBDC (advising): delawaresbdc.org. For state registrations/licensing questions, use Delaware One Stop and agency contacts on revenue.delaware.gov, corp.delaware.gov, labor.delaware.gov, dpr.delaware.gov, and dhss.delaware.gov/dph.
Troubleshooting: “What to do if this doesn’t work” (master list)
- One Stop won’t accept my application.
- Try a different browser, disable pop-up blockers, and clear cache. Use the One Stop help page or contact form on the portal: Delaware One Stop.
- I don’t know my business activity/NAICS code for the state license.
- Use the One Stop prompts and, if unsure, contact the Division of Revenue through the official site: revenue.delaware.gov.
- City of Dover says I need zoning approval and a CO.
- Ask Planning/Inspections for a checklist, required drawings, and which inspections you’ll need. Start at: City of Dover — Departments.
- Fire Marshal asked for plan review and upgrades I didn’t expect.
- Request a scope meeting with the State Fire Marshal’s office (Kent County Division) and your architect/engineer to clarify code paths. Info: statefiremarshal.delaware.gov.
- DPH delayed my food license.
- Submit complete plans early, confirm equipment specs, and schedule inspections well before your target opening. Start at: DPH — Food Safety.
- Payroll set up late; I missed withholding/UI steps.
- Register now through One Stop for withholding and with DOL for UI. Ask about penalty options if applicable: onestop.delaware.gov, labor.delaware.gov.
- I got a Gross Receipts Tax notice.
- Log into your Division of Revenue account and check your filing frequency and category. Rate tables and filing: Gross Receipts Tax.
Key sources (verify every major step)
- State registration and licensing: Delaware One Stop
- Delaware Division of Revenue (business license, GRT, withholding): revenue.delaware.gov
- Delaware Division of Corporations (entity, annual taxes): corp.delaware.gov
- Delaware Department of Labor (UI, contractor registration, workers’ comp): labor.delaware.gov
- Delaware Division of Professional Regulation: dpr.delaware.gov
- Delaware Division of Public Health: dhss.delaware.gov/dph
- Office of the Alcoholic Beverage Control Commissioner: abcc.delaware.gov
- City of Dover (Finance, Planning/Inspections): cityofdover.com
- Delaware SBDC (advising): delawaresbdc.org
About this guide
- Focus: Practical licensing and permitting for businesses operating in Dover, Delaware, with direct links to official pages for verification.
- Scope: State business licensing, Dover city licensing, health/fire/zoning permits, employer tax registrations, Gross Receipts Tax, and ongoing compliance.
- Sources and dates: Official Delaware and City of Dover websites linked above. Laws, fees, and forms are updated by agencies; always check the linked page before you file or pay.
- Updates: This guide was last updated in September 2025. For the most accurate numbers and deadlines, always rely on the official pages linked in each section.
Disclaimer
This guide is for general information only and is not legal, tax, or accounting advice. Program rules, fees, deadlines, and contacts change. Always verify requirements, forms, and amounts with the relevant agency using the official links in this article. If you have questions about your specific situation, consult a qualified Delaware attorney or CPA.