State guide · Delaware
Starting a Medical Practice in Delaware
What physicians need to know about Delaware's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Service Corporation or LLC
LLC permitted
Yes
CPOM enforcement
Limited
Top income tax
Verify — top bracket approximately 6.6%
Min. franchise tax
Verify — DE LLC tax $300/year; corporate franchise tax $175 minimum (varies)
Med board registration
Not required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
Delaware physicians may form a Professional Service Corporation under 8 Del. C. §603 or an LLC under the Delaware LLC Act. Delaware's LLC statute is broadly permissive.
Filing is with the Delaware Division of Corporations.
- •Form a Professional Service Corporation or LLC
- •Practitioners must be licensed Delaware physicians
- •File Certificate of Incorporation or Certificate of Formation with the Division of Corporations
- •Pay annual Delaware franchise tax (corporations) or LLC tax ($300 flat)
- •Maintain a Delaware registered agent
Corporate Practice of Medicine
Delaware has a limited Corporate Practice of Medicine doctrine. Lay ownership of practices is restricted but Delaware's entity laws are permissive. Fee-splitting is prohibited.
Tax Considerations
Delaware has a graduated personal income tax with a top bracket of approximately 6.6%. Delaware's corporate franchise tax can be significant for C-corps with large authorized shares; LLCs pay a flat $300 annual tax.
- •Top personal income tax: Verify — approximately 6.6%
- •Delaware LLC annual tax: $300 flat
- •Delaware corporate franchise tax: $175 minimum, can be much higher for C-corps with large authorized shares
- •No state-level sales tax
Delaware Board of Medical Licensure and Discipline
Delaware does not require general entity registration with the Board of Medical Licensure and Discipline. Individual physicians are licensed.
- •No general entity registration required
- •All practicing physicians must hold an active DE medical license
Employment Law Considerations
Delaware is moderately employer-friendly. No statewide paid sick leave (yet — verify; Delaware Paid Family and Medical Leave Insurance Program payroll contributions begin 2025, benefits 2026). Non-compete agreements are generally enforceable.
- •Delaware Paid Family and Medical Leave Insurance Program: contributions began 2025, benefits 2026
- •No general statewide paid sick leave
- •Non-compete agreements enforceable if reasonable
- •Delaware minimum wage adjusts annually (currently $13.25, rising)
Official resources
Bookmark these official agency portals for Delaware entity formation, tax registration, and medical board information.
Looking for Delaware licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for Delaware.
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