We study a free boundary problem modeling multilayer tumor growth with a small time delay tau, representing the time needed for the cell to complete the replication process. The model consists of two elliptic equations which describe the concentration of nutrient and the tumor tissue pressure, respectively, an ordinary differential equation describing the cell location characterizing the time delay and a partial differential equation for the free boundary. In this paper, we establish the well-posedness of the problem; namely, first, we prove that there exists a unique flat stationary solution (sigma*,p*,rho*,xi*) for all mu>0. The stability of this stationary solution should depend on the tumor aggressiveness constant mu. It is also unrealistic to expect the perturbation to be flat. We show that, under non-flat perturbations, there exists a threshold mu*>0 such that (sigma*,p*,rho*,xi*) is linearly stable if mu<mu* and linearly unstable if mu>mu*. Furthermore, the time delay increases the stationary tumor size. These are interesting results with mathematical and biological implications.