If you are thinking of forming a Delaware LLC, consulting an experienced business lawyer is highly recommended. Not only will they save you time and money, but also stress.
Forming a limited liability company is one of the most popular business structures due to its limitations on personal liability and numerous tax advantages over sole proprietorships.
Articles of Organization
Filing articles of organization with your state is the official establishment of your business. You’ll need them when applying for a Federal Tax ID (EIN), opening a bank account, signing contracts and more – the list goes on!
Delaware is one of the top choices for businesses across America due to its friendly corporate law and low filing fees. Furthermore, state statutes are regularly updated in consultation with practicing corporate lawyers.
The state also provides limited liability protection for business owners, shielding your personal assets from potential liabilities that arise as a result of your LLC’s operations. This is an invaluable benefit in today’s litigious environment.
When forming your Delaware LLC, ensure the Articles of Organization include the correct business name and a designated registered agent. This person must be an adult who resides and possesses a physical address within Delaware, as well as be accessible during normal business hours.
Certificate of Registration
Delaware is a top choice for small business owners due to its supportive laws and pro-business government. Furthermore, Delaware provides tax advantages, liability protection and other advantages to entrepreneurs who form an LLC.
In Delaware, an LLC is formed by filing a Certificate of Registration with the state Division of Corporations. This three-page document contains basic company information.
The Delaware Division of Corporations offers an online portal that makes filing a Certificate of Formation simple. Once you submit the necessary documents, you’ll receive email confirmation that your LLC has been accepted for formation.
The next step in selecting a registered agent for your LLC is to select one. This individual will accept legal mail and communications on behalf of your business, including official notices and process served by the state.
Registered Agent
Delaware LLCs and corporations must appoint a registered agent with a physical street address within the state. Your agent should be available to receive and accept service of process when needed.
Your registered agent should have a commercial address and office that are open during regular business hours. Furthermore, they must be able to scan and forward any legal or tax documents received on your behalf.
Delaware registered agents play an essential role in corporate compliance, sending timely notices of legal matters or impending filing deadlines. Having this role allows you to avoid lawsuits and other government penalties.
Delaware registered agent services ensure you remain compliant with all state requirements, offering a reliable commercial address to receive and process mail and other official documents. They offer various delivery options like email or text, as well as assistance preparing annual reports and Franchise Tax paperwork.
Operating Agreement
Delaware LLC operating agreements are legal documents that define the company’s ownership structure, management practices and rights of each member. Drafted by an experienced attorney, these documents can help shield members from personal liability in case of future issues.
An LLC’s operating agreement can help avoid disputes between owners and managers, which could prove expensive in court.
Operating agreements are especially useful for family businesses and joint ventures as they clearly define who is accountable for specific operations within the business.
Delaware recognizes a type of LLC known as a Series LLC. This permits the formation of sub-entities (or “series”) beneath the parent LLC with different ownership percentages, powers, duties and liabilities. This provides protection for business assets from creditors’ claims while still retaining unified management.
