Delaware LLCs are one of the most commonly formed business entities in Delaware and offer numerous advantages to owners and managers alike.
Forming an LLC in Delaware is an incredibly straightforward and affordable process, which only requires paying an initial small fee and annually paying franchise tax of $300.
Choosing a business name
Name Selection is an essential step when setting up a Delaware limited liability company. Your business name must meet state naming rules while being unique.
Your business name is used to promote and market your brand and make people aware of the products or services your company provides, as well as form the basis of logos and other branded materials.
When selecting a business name, it is also a good idea to check its availability in the state where your business will operate. One way of doing this is through Delaware’s database of business entities.
Searching the Secretary of State website will enable you to conduct a free name search. If the desired name is available, reserve it for up to 120 days before filing LLC papers – useful if starting up your business before its name has been approved!
Filing for an EIN
Once your Delaware limited liability company has been formed, you must apply for an EIN (Employer Identification Number). An EIN serves as a federal tax ID number that helps identify your business and file taxes.
The IRS accepts EIN applications online, by phone and mail – this process should take no more than 15 minutes to complete.
As soon as you select the entity type, EIN application will ask for information to verify your business details – including name and address information as well as any additional pertinent details.
As soon as your application has been submitted, you’ll be asked how you’d like to receive your EIN: electronically or as a physical letter via postal service. Select the option that best meets your needs, and it will arrive instantly – either electronically or as physical mail!
Opening a bank account
An important element of running any successful business is having access to a bank account, which enables you to deposit and withdraw funds, make payments and transfer funds electronically – as well as paying bills online.
An bank account makes managing finances and reaching financial goals much simpler. Opening one may seem intimidating at first, but with the appropriate information it can actually be quite straightforward.
Opening a bank account can take anywhere from a few days to several weeks depending on the complexity of your business, although an expedited filing service can always be requested if necessary.
Delaware is one of the top banking jurisdictions in the US. Therefore, many banks possess an in-depth knowledge of businesses incorporated in Delaware and understand its requirements for opening accounts.
Incorporating
Establishing a Delaware limited liability company (LLC) is a straightforward process that will create a legally protected business entity in any state of your choosing. But when creating an LLC there are certain key points you should keep in mind.
Selecting a registered agent is one of the most essential steps. Your agent serves as your representative to receive legal and tax notices on your behalf.
Choose an experienced and dependable registered agent when forming a Delaware LLC. Services like IncFilings, ZenBusiness, Swyft Filings, Northwest Registered Agent, LegalZoom are trusted platforms with registered agent add-on features that can make this step simpler.
Draft an Operating Agreement When setting up your Delaware LLC, creating an operating agreement is also key. An operating agreement outlines exactly how your company will operate as well as each member’s rights and responsibilities – essential in order to protect limited liability protection.
