As your business expands, it may become necessary to move from a California LLC to a Delaware LLC. This decision is vital for several reasons.
Delaware boasts a robust business law system that offers many advantages to companies. One such advantage is the state’s Court of Chancery, which handles corporate trials before judges instead of juries.
Requirements for a Delaware LLC
In Delaware, an LLC must meet several requirements in order to operate. These include having a registered agent, business licenses and tax filings.
If you are not a legal expert yourself, consulting a lawyer to form your Delaware LLC is recommended. This will guarantee all paperwork is done correctly and that all legal requirements are met.
Before your LLC can operate in the state of Louisiana, it is necessary to have an operating agreement. This document lays out how the business will function and allocate profits and losses among owners.
In addition to these general requirements, you’ll need to register your LLC with the IRS and acquire an EIN (Employer Identification Number). This is essential for both entity and tax purposes and can be done automatically through SunDoc. With this number, you’ll be able to open business bank accounts in the US as well as hire staff members there.
Filing fees
When it comes to forming and running your business, there are numerous expenses that must be paid. Some fees are assessed by the Delaware Division of Corporations while others are payable to other state entities or federal governments.
One of the most frequent fees is a filing fee, which is an initial charge that must be paid when forming your LLC. Typically, this fee ranges from $15 to $89 depending on how many shares you wish to issue.
Additionally, you may have to pay a franchise tax for each year that your LLC operates in Delaware. This tax is due on June 1 of every year and comes with an incredibly steep penalty if not paid on time.
If you need assistance navigating these filing requirements, consider using an affordable and reliable LLC formation service. These packages typically include registered agent services and can save you a considerable amount of money in the long run.
Reserved company names
Before forming your Delaware LLC, it’s essential to confirm if the name you wish for is available. You can do this by running a business name search using Delaware’s online tools.
In addition to checking name availability, it’s essential that your chosen business name doesn’t infringe upon any intellectual property rights. To this end, conducting a trademark search can help determine if any federally registered trademarks are associated with your desired company name.
The Delaware Secretary of State maintains a registry of all business entities registered in the state, such as corporations, LLCs and other forms of limited liability companies. To ensure your chosen business name stands apart from any other Delaware business entity, be sure to double-check its uniqueness.
Registered agent
If you form your business in Delaware, it is mandatory to designate a registered agent on the formation documents. This individual will be responsible for receiving service of process and government correspondence such as notices from the Secretary of State or Division of Corporations.
If the registered agent is an individual, that individual must have a physical address in Delaware; PO Box addresses are not accepted.
When designating a registered agent for your company, make sure they can be reached during regular business hours. Doing so ensures that your business receives timely notifications and legal documents from the Secretary of State or other government agencies.
Registered agents provide document filing reminders, keeping your company compliant with State laws. This keeps the business organized and focused on operations. Registered agents also offer invaluable guidance and support if there are ever any problems encountered. Having someone manage these matters for you frees up time, energy, and focus to grow the business.
