Overview: When starting a business in Delaware with employees, you must register for State Withholding Income Tax and Unemployment Insurance (UI) Tax. If operating within Wilmington, you may also be required to obtain a local business license. These registrations ensure compliance with both state and municipal payroll tax laws.
Important! This guide does not constitute legal or tax advice. You can consult a CPA or attorney for official guidance.
Taxes You Must Register For:
State Withholding Income Tax
Tax Agency: Delaware Division of Revenue
Tax Type: State Withholding Income Tax
Registration Steps
1. Create a Username and Password
Visit the Delaware One Stop business registration portal.
Enter your email address and personal details, check the reCAPTCHA and agree to terms and conditions, then click Submit.
Verify your email address via the link sent to your inbox and create your account password.
2. Register for a Withholding Account Number
On the Delaware One Stop homepage, under Withholding, click Get Started.
Select Register as a Withholding Agent and follow the prompts.
Enter your FEIN, business name, and other business details.
Choose your Type of Ownership from the dropdown.
Enter your First Payroll Date.
Review all information and submit the application.
You’ll receive a confirmation upon successful registration.
Support:
Phone: 302-577-8778 (Option 2)
Website: Delaware Division of Revenue
Update your Buddy Punch account with your Delaware Division of Revenue account number to ensure tax filings are processed correctly.
Unemployment Insurance (UI) Tax
Tax Agency: Delaware Division of Unemployment Insurance
Tax Type: Unemployment Insurance (UI) Tax
Registration Steps
1. Register Online via Delaware One Stop
Go to Delaware One Stop.
Under Hiring, select Get Started and then Report Hiring Now.
Begin registration by entering your FEIN.
Complete the remaining registration steps through the guided portal.
2. Paper Registration Option
Download and complete the UC-1 Report to Determine Liability.
Mail the completed form to the address listed on the top right of page one.
Support:
Phone: 302-761-8482
Website: Delaware Division of Unemployment Insurance
Update your Buddy Punch account with your Delaware UI account number to ensure accuracy in unemployment filings.
Local Business License (City of Wilmington)
Tax Agency: City of Wilmington
Tax Type: Local Business License (City of Wilmington)
Registration Steps
1. Paper Registration
Download the Application for Business License.
Complete and mail the form to the address on the top left of page two.
Support:
Phone: 323-576-2415
Website: City of Wilmington:
Update your Buddy Punch account with your Wilmington business license account number if applicable.