If you’re planning to form a Delaware LLC, knowing its status may be essential. As a business owner or potential investor, knowing its status will enable you to determine if it complies with state regulations.
To do this, visit the Department of State Division of Corporations website and search by name, file number or date of formation.
Certificate of Formation
The Certificate of Formation for Delaware LLC status is the document which confirms your LLC has been formed in good standing with the state and also names your registered agent who will receive tax notices and service of process on its behalf.
Some individuals and LLC members want their names and titles listed on the Certificate, to protect themselves from possible future claims of ownership disputes. Others might simply require their physical business address be listed.
To order your Certificate of Formation, log into your account and choose “File New Documents.” Choose how you’d like the state to return them – most people opt for regular mail but you could list FedEx or UPS account numbers to expedite delivery if desired. Also prepare a check or money order in the amount of $90 (domestic) or $200 (foreign), plus any expedited processing charges added into this total payment amount.
State Filing Fee
One of the key steps in starting an LLC in Delaware is registering it with the state. This involves filing an LLC Certificate of Formation with Division of Corporations.
This form can be filed online, via mail or fax and an expedited fee can be charged up to $100 for same-day processing or $50 for 24-hour turnaround time.
Delaware provides a name reservation service that enables you to secure the name of an LLC for up to 120 days – this step is optional, but does offer peace of mind.
Delaware LLCs allow business owners to select the taxation structure that best meets their needs; C corporations are subject to double taxation (once as corporate income and then again as individual income), but Delaware LLCs are exempt from this practice.
Formation and operation fees associated with operating an LLC in Delaware include franchise tax, state filing fees and business expenses like using registered agent services. This guide outlines all of these initial and ongoing expenses while offering advice on how to save money when starting up an LLC there.
Registered Agent
Registered Agents serve an integral role for LLCs by receiving legal and official mail on their behalf, handling tax notices, annual reports and any tax notices filed with the state on your behalf.
Delaware law mandates that any business entity register a Registered Agent as part of its formation documents, and maintains an online public registry of agents so you can easily search their name and address online.
When selecting an individual or business to serve as your registered agent in Delaware, make sure they have an established physical address there and can be available during regular business hours. Even if they’re not resident here themselves, your agent should be able to receive important paperwork on your behalf and deliver it promptly back to you.
If your registered agent changes, be sure to notify the Delaware Division of Corporations immediately in order to keep your LLC status current and avoid dissolution by the DOC. Failing this action could see them dissolve it altogether.
Operating Agreement
No matter if you are starting up a single-member LLC or multi-member corporation, creating an operating agreement is an invaluable way of outlining the rules of business early and avoiding potential confusion among members.
An operating agreement can address issues like profit and loss distribution among members, as well as rules regarding how an LLC may change ownership or dissolve.
Create committees or groups of members with distinct rights or responsibilities.
There are various free templates online available for creating an LLC operating agreement, but it is crucial that your agreement meets your business needs and intentions specifically.
