Once a business is ready to commence, they need to form the entity and determine its tax structure. This can be an intricate process and may necessitate the assistance of an experienced professional.
LLC formation in Delaware is a relatively straightforward procedure that can be completed within two weeks from start to finish. It involves filing for your Certificate of Formation and obtaining an Employer Identification Number (EIN).
Online filing
If you’re a business owner looking to form an LLC in Delaware, the process is relatively straightforward. The key steps include picking a name for your LLC, registering it with the state, and designating a registered agent.
Once you have all necessary documents, you can file with Delaware Division of Corporations (DOC) either online or by post. Depending on which service you select, filing fees can range anywhere from $90 to $200.
Step 1: Choose a Name
Before forming an LLC in Delaware, it’s important to verify if the business name you wish is available. The State of Delaware website features a search engine that can verify if the desired domain name is free.
Obtain an Employer Identification Number (EIN)
If you have employees, an employer identification number (EIN) is necessary. This tax ID allows for the opening of business bank accounts and filing taxes with state agencies.
If you’re uncertain of the process to obtain an EIN, reach out to the IRS for more information. Doing so will make opening business banking accounts and tracking business income and expenses for tax purposes much simpler.
Expedited filing
One of the fastest ways to form an LLC in Delaware is through expedited filing. This usually saves two or three weeks and allows you to start receiving revenue much sooner.
The process begins with filing the certificate of formation form either online or by fax, along with the required $90 state filing fee.
It typically takes the Division of Corporations a few days to process your certificate of formation. Once they have done so, they will provide you with a file-stamped copy of the legal document along with all associated filing fees.
You may opt to pay an additional $50 and receive an officially certified copy of your filed certificate of formation.
Forming an LLC in Delaware requires first creating an operating agreement. This will serve as the contract between you and other members of your company.
When applying for your LLC approval from the Division of Corporations, there are several factors that determine how long it will take. These include how many members you have, whether or not you plan on hiring employees and where your business is situated.
Name reservation
Save yourself the hassle of forming an LLC in Delaware by pre-reserving the name. Doing this ensures no other company can use it while you wait for the filing process to be finished.
Before reserving a name for your business venture, it is essential to confirm its availability. Utilizing the state’s business entity search can help confirm that the desired domain name isn’t already taken by another entity.
Once your name reservation is confirmed, it will remain exclusive for 120 days and no other companies can form with that same designation during that time. After this period has elapsed, you can renew your reservation by filing an application to re-reserve it at a cost of $75.
In addition to reserving an LLC name, you may also register a trade name (known as a DBA) in Delaware if you want to avoid using the same name as your entity. This can be beneficial for small businesses that don’t want their LLC certificate of formation to reflect both names.
Registered agent
Before forming an LLC in Delaware, it is necessary to designate a registered agent. This individual will accept legal documents and notices on behalf of the business and help keep its records up to date.
You have two options for acting as your own registered agent: hire a company to do it for you or act as your own agent. If selecting the latter option, ensure they are familiar with Delaware’s laws and regulations.
A Delaware registered agent can assist your company in staying compliant with corporate paperwork, such as annual reports. Doing this can save time and money in the long run by helping to avoid accidental violations of state law.
IncFile is one of the top registered agent services in California, offering a complimentary year of service when you form an LLC on their site. They boast excellent customer service and boast a high customer satisfaction rating.
