Forming a Delaware LLC is relatively straightforward, though you must adhere to certain guidelines in order to complete the procedure.
First, choose a name for your LLC. You can do this using the BetterLegal Name Finder or seek advice from a lawyer. Afterwards, file formation documents with the state.
Articles of organization
Delaware is one of the most business-friendly states and offers numerous advantages to small businesses. One such benefit is LLC liability protection, which offers limited liability protection.
The Articles of Organization are a necessary document that must be filed with the state before an LLC can officially launch operations. Once approved, this forms the legal structure of the LLC and guarantees its business name.
It can also be used to obtain a Federal Tax ID (EIN), open bank accounts, apply for loans, sign contracts and conduct other business activities.
When filing your articles of organization, make sure they contain all required information. Important details to include include a full business name, the address of its principal place of operation and who serves as its registered agent.
Certificate of formation
The Certificate of Formation is a legal document that establishes your Delaware LLC as active and operational. You may file it electronically with Delaware One Stop or mail the downloadable form via regular mail.
The certificate must include the LLC’s name, corporation number, registered agent information and other important company details. It must be signed by someone authorized to represent the business on its behalf.
When filing by mail, you must include a cover sheet. This should contain the address of your LLC, its return address and phone number.
Delaware LLCs must have a designated registered agent who can receive service of process in the state. This individual or business must have an actual physical address within Delaware, as well as being available during normal business hours.
The certificate of formation is an essential step in the registration process for your LLC, and must be filed with the Delaware Secretary of State. Typically, state officials process LLC documents within three weeks.
Registered agent
A registered agent in Delaware is a person or business that maintains a physical address to accept legal documents on behalf of your company. Your business must designate one with the Secretary of State, and they must be available at that address during normal business hours.
Your registered agent also serves as a legal address for service of process purposes. When someone sends a lawsuit or other important document to your Delaware LLC, they can look up its registered agent’s name and address in public records maintained by the Delaware Division of Corporations.
Your registered agent should be available to accept service of process in person or over the phone. They should have a commercial address and office in Delaware so they can quickly receive documents and respond accordingly.
Annual report
Every year, businesses registered in Delaware must file a company information report with the secretary of state. This includes a 7-digit Business Entity File Number, one office address and names and addresses for directors.
Filing for incorporation with the Secretary of State’s Division of Corporation can be done online through their online portal. Now is an ideal time to update your registered agent and pay any outstanding taxes.
Once your file number is entered, you’ll be presented with annual report instructions and tax calculation method options. Depending on your tax obligations, you have two payment options: traditional method or alternative method.
Businesses must file their annual reports by March 1. Failure to file within that period will incur a $200 penalty plus interest at 1.5% per month.
