How to Start a Delaware LLC in 2024 - Step by Step (2024)

If you’re thinking about forming a Delaware LLC, the Diamond State is widely considered the best state to start an LLC because of the many advantages it provides for small businesses and large corporations alike. While the main formation benefits offered by the First State are for corporations, there are still perks for starting an LLC there.

For example, Delaware has specific business courts which have produced the most expansive business case law in the country. If you do choose to become a corporation down the road, you’ll be doing so in the state where more than two-thirds of companies in the United States are incorporated because of its tax benefits offered.

Learn how we rate LLC services in our LLC methodology.

Starting an LLC in Delaware will include the following steps:

  1. Name Your Delaware LLC
  2. Designate a Registered Agent
  3. File Your Delaware Certificate of Formation
  4. Draft an Operating Agreement
  5. Obtain an Employer Identification Number (EIN)

How to Form Your Delaware LLC (Step-by-Step)

Whether you are choosing to DIY your Delaware LLC formation, or you’re taking the easy route and are choosing to use a business formation service, you should be familiar with the Delaware LLC formation process. Not sure whether an LLC is the best entity for you? Our guide comparing business entities will help you make the best choice for your business.

Option #1

Use a Service

Cost: $0 + state fees

Time: 5-10 minutes

Option #2

Do It Yourself

Cost: $0 + state fees

Time: 60 minutes+

  1. Choose a name for your LLC
  2. Select a registered agent
  3. File articles of organization
  4. Create an operating agreement
  5. Create an EIN

Step 1: Name Your Delaware LLC

Choose a name for your LLC

Visit ZenBusiness to see if your name is available

Registering your LLC name with the Delaware Division of Corporations is the first step to forming an LLC in Delaware. The unique name of your Delaware LLC must end with “Limited Liability Company” or some abbreviation thereof (e.g., “L.L.C.”) You can use the Division of Corporation’s LLC lookup tool to ensure your LLC’s name availability. Additionally, if your business name includes any foreign (non-English) words, you must include a translation with your filing.

Here is a list of words or phrases that your LLC may not include:

  • Reference to the word “bank,” “medical,” or any variation that may indicate your LLC is a bank or medical facility (without approval of the Delaware Banking Commission or other regulatory body)
  • Words considered lewd, racist or otherwise inappropriate (as deemed by the Delaware Secretary of State)
  • The words “Incorporated,” “Inc.” or other language that would mislead others into thinking you’re a corporation or anything other than an LLC
  • Words or acronyms that may confuse your Delaware LLC with a government entity (for example, “NSA” or “IRS”)

It’s important to understand that even if your company name is available, it may not comply with federal and state trademark laws. You may want to conduct additional research before forming an LLC in Delaware, and you might benefit from consulting with an attorney to ensure such adherence.

How to Start a Delaware LLC in 2024 - Step by Step (6)

Inside Scoop:

If you aren’t ready to file your certificate of formation but you want to prevent others from using your desired company name, you can file an application for reservation of an LLC name to reserve it. The reservation lasts for 120 days and requires a $75 filing fee.

Using a DBA in Delaware

After performing a Delaware LLC name search, you’ll need to consider whether you want to conduct business under the name you’ve chosen for your LLC, or if you’d like to use a “doing business as” (DBA) fictitious name. If your company specializes in more than one industry you may want to use a formal name for your LLC (often the last name of the founding member(s)) to minimize confusion. Then you can register DBA names for each individual business. However, you must register those DBAs with the Delaware county in which you are operating.

Specifically, you must file (in person and by mail) a notarized Registration of Trade, Business & Fictitious Name Certificate form in each Superior Court where you do business and pay the $25 fee.

Step 2: Designate a Registered Agent

Select a Registered Agent

The next step in Delaware LLC formation is designating an individual or business entity to act as your registered agent. A registered agent receives legal documents such as service of process and other official documents on your LLC’s behalf.

Unlike many other states that impose stricter requirements on who can be a registered agent for an LLC, Delaware only requires that this agent be a Delaware resident and have a physical street address in the state. Some LLCs choose to elect a member as the registered agent, but most prefer using a third party that is unconnected to the LLC.

Delaware compiles a list of registered agents for you to use, or you can use an online service. A registered agent service is often offered when you form an LLC using an online formation service, which may help keep you organized when setting up your Delaware Limited Liability Company.

If doing it yourselfIf using an LLC formation serviceIf hiring an attorney
If you’re DIY, you or another member can be the registered agent, or you can hire a registered agent service to perform the task on behalf of your Delaware LLC.If you’re using an online LLC service to create an LLC, a lot of times they have a registered agent add-on feature you can use, and you’ll want to pay attention to whether they offer multi state support (in case you have expansion plans) and same-day document delivery.If hiring an attorney to form your LLC, see if they will be your agent (this will also streamline the legal process).

Step 3: File Your Delaware Certificate of Formation

Next to form your Delaware LLC, the individual organizing the LLC needs to file a certificate of formation, commonly referred to as “articles of organization.” Filing this document is how the secretary of state will validate your business and index important information about your company. The certification must contain the following information:

  • Your LLC’s name
  • The registered agent’s name and address
  • The name and signature of the authorized person completing the form
  • Cover page

Although you may choose to leave it blank, the cover page element gives you the opportunity to include certain conditions and restrictions in your formation documents. This provision, which is unique to Delaware, allows LLCs to establish limited liability protections that are separate from the parent organization (if applicable).

Form to FileCertificate of Formation
How to FileOnline:
One-Stop

Mail:
Delaware Division of Corporations 401 Federal Street — Suite 4 Dover, DE 19901
Filing Fee$110 (current as of April 2024)

Foreign LLCs Operating in Delaware

If you already have an LLC in a different state, you’ll need to register your business within Delaware to carry out business activities. Rather than filing a certificate of formation like a new LLC would, you’ll need to file a certificate of registration of a foreign limited liability company. You’ll also need to provide a certificate of existence from the LLC’s home state and pay a $200 filing fee. Many other states will also refer to this document as a certificate of good standing.

Form to FileForeign Qualification
How to FileOnline:
e-filing

Mail:
Delaware Division of Corporations 401 Federal Street — Suite 4 Dover, DE 19901
Filing Fee$200 (current as of April 2024)

Step 4: Draft an Operating Agreement

This step is perhaps the most important when learning how to start an LLC. Delaware is one of five states that requires the creation of an LLC operating agreement where there is more than one member of the company. Delaware LLC laws don’t require formal submission of this agreement to the state, but when you register your company with the state you agree to have one in place which governs your company. Delaware doesn’t require single-member LLCs to draft operating agreements, but it’s typically in your best interest to create one anyway.

The operating agreement for LLCs is a legally enforceable contract that outlines how the LLC will be run and the specific rights and obligations of each member. This document also defines the LLC as a separate business entity, distinct from any personal dealings. As such, the operating agreement goes a long way in protecting personal assets from company liabilities.

Common LLC operating agreement elements include:

  • Classes of interests. Different classes of members may have different rights with respect to the LLC’s operations (voting rights, etc.)
  • Management. Indicate whether the LLC is managed by a board, one member, several members, an appointed manager, etc.
  • Fiduciary duties. Fiduciary duties may be imposed by default unless you specify any modifications or limitations
  • Profits and distributions. How profits and losses are allocated among the members and other related details
  • Transfer of interest. You may choose to outline the rules and stipulations for members seeking to transfer their interest (or withdraw entirely) in the LLC
  • Raising money and adding members. This would spell out how the LLC would raise new funds and bring in new members
  • Dissolution. The conditions that would trigger the cancellation of the LLC and the process for doing so
If doing it yourselfIf using an LLC formation serviceIf hiring an attorney
If you’re DIY, you can draft an operating agreement yourself, use a template or use a formation service to create your operating agreement.If you’re using an online LLC service to create an LLC, an operating agreement generator is an additional feature that will save you time and effort.If hiring an attorney to form your LLC, they will often draft an operating agreement as part of the formation process since these documents are required for Delaware LLCs.

Step 5. Obtain an Employer Identification Number (EIN)

Get an EIN for your LLC

If your LLC has more than one member or employees, it will be required to obtain a Federal Tax ID number, also known as an employer identification number (EIN) from the Internal Revenue Service (IRS). This one-of-a-kind 9-digit number is mostly used for tax purposes, but may be required to engage in other important business activities such as:

  • Hiring employees
  • Opening a business bank account
  • Doing business with vendors
  • Getting a business loan

For the reasons above, even single-member LLCs should consider applying for an EIN especially since the application is free, fast and easy to do online. As soon as you hit submit your number will be assigned to your Delaware LLC. The state will also assign a 7-digit number to new businesses that will be used for state tax purposes and other LLC applications.

If you’re a single-member LLC and you don’t choose to get an EIN, you’ll need to use your personal Social Security number on legal documents requiring an EIN. Instead of putting your personal information at risk, get an EIN to add an extra layer of security.

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How to Start a Delaware LLC in 2024 - Step by Step (11)

Important Note

New LLCs in Delaware must comply with the federal BOI reporting requirement. Submit a BOI report to FinCEN via their secure system at www.fincen.gov/boi within 90 days of formation. This free filing demands specific details about your company and its beneficial owners. Incorporate this step into your LLC creation process.

Follow the Latest in the 2024 BOIR Litigation

The federal BOI reporting (BOIR) mandate in the Corporate Transparency Act (CTA) is currently being litigated across the country, with at least one federal court ruling that its enforcement against plaintiffs in the case was unconstitutional. As of now, all entities, except plaintiffs in that case, are still required to comply with BOIR. However, it’s possible that BOIR may be revoked in future months if a case against it wins in the Supreme Court or if the mandate is repealed. We’ll update this page with more information on legal proceedings as soon as it becomes available.

The Cost of Forming an LLC in Delaware

Creating an LLC in Delaware has benefits, such as legitimacy and investor appeal. However, business owners should prepare for some upfront and recurring costs. To establish a Delaware LLC, a $110 Certificate of Formation is required. You’ll need to pay an additional $50 if you want a certified copy of your document. You can pay another $50 for the state to process your document within 24 hours. The state will even process your paperwork that day for an extra $100. Additionally, getting a state business license will cost $75 for the first location per year and $25 for each additional location per year.

All LLCs must appoint a registered agent inside the state, which normally costs a few hundred dollars annually. Multiple brands offer registered agent services. LegalZoom is one of them — as your registered agent, the company will alert you whenever it receives important mail on your behalf, and the company will forward critical mail and legal notices to your business. Legal Zoom charges $249/year for registered agent services. ZenBusiness can also be your registered agent. The company will receive any notices for your brand and scan and upload documents to an online dashboard for you to view. The company will also alert you via mail regarding which legal notices need your attention. Using ZenBusiness will cost you $199/year. Swyftfilings — which offers alerts, monitoring, and privacy protection — charges $149/quarter for its registered agent services.

A more cost-effective option is NorthWest, which provides typical registered agent services but also offers free limited mail forwarding, security and corporate guides that you can call to get answers to your questions. NorthWest charges $125/year to be your LLC’s registered agent. Incfile is a slightly cheaper option. The company’s registered agent services are free for the first year if you form your LLC with Incfile. Then, you have to pay $119/year. Incfile services include alerting you whenever it receives documents about your business, automatically forwarding your mail and providing a dashboard to host your business essentials.

Delaware’s annual franchise tax, which starts at $300 yearly and rises depending on total authorized capital, is the largest ongoing expense. However, Delaware LLCs can lower tax and regulatory obligations as the business scales due to the lack of a state tax on pass-through income and the flexibility of corporate laws.

Pros and Cons of Forming an LLC in Delaware

Pros

No state income tax on pass-through earnings

Minimal reporting and disclosure requirements

Cons

Minimal taxes, starting at $300 per year

Maintain Your Delaware LLC

After taking the time and effort to start your business you’ll want to do all you can to maintain your Delaware LLC. There are licensing requirements that must be satisfied to keep it active, and you’ll need to pay all required taxes to stay in business. On top of that, you should maintain good business practice to protect your LLC if it should ever come into hard times.

No Annual Report Requirement

Unlike other state’s laws on maintaining an LLC, Delaware does not require an annual reporting to be filed to keep an LLC active. In other states, this filing is an opportunity for LLCs to make updates to contact information to keep the record of their LLC active. Since Delaware doesn’t have annual reporting mandates, you’ll need to inform the state when information changes using other methods.

For example, when your registered agent changes or their address changes you’ll need to alert the state by submitting a form and paying the $50 filing fee. If any other modifications need to be made in any other sections in your certificate of formation, you’ll need to file an amendment and pay the $50 fee.

Complying with Tax Requirements

All Delaware LLCs (foreign and domestic) are required to pay a $300 state tax each year. The tax for the prior year is due by June 1. If you fail to pay on time, you’ll face a $200 fine and a 1.5% interest charge per month on the unpaid tax and fine.

Your LLC’s other tax requirements will depend on how your LLC chooses to be taxed. You can keep the LLC taxation structure (ordinary pass-through entity), or you can elect to have your LLC treated as an s-corp or c-corp.

With an ordinary pass-through structure, your LLC’s member(s) will pay income taxes on the money the company makes for that tax cycle. Delaware has a graduated tax rate that changes year-to-year.

LLC vs. S-corp

Both LLCs and S-corps are pass-through tax entities. This means the income of the LLC is passed through to the members or employees, in other words, the LLC itself does not pay taxes on the income it earns.

The difference is that as an S-corp the members will be employees of the business and will be paid by the LLC in salary and the rest will be considered a dividend. This can save the member/employees a significant amount in taxes. However, it is only available under a specific set of circ*mstances set by the IRS.

LLC vs. C-corp

A C-corp, or c-corporation, is technically a corporate entity, and to gain all the benefits of a corporation an LLC must incorporate. An LLC can elect to be treated as a corporation for tax purposes only, but this is not usually a beneficial move and might end up costing the LLC more in taxes rather than serving as a tax reduction. C-corps pay taxes once on income as a company and then shareholders pay an additional investment income tax on their dividends from the C-corp.

Opening a Business Bank Account

Opening a bank account and a business credit card for your LLC should be one of the first moves you make after your certificate of formation is approved and your operating agreement is in place. Holding your Delaware LLC assets in a separate account from your personal assets is an important step in securing the liability offered by the LLC structure.

That way, if your LLC faces debt or is sued by a party seeking payment if they win, they can only touch the assets in the business account. The personal account will be protected by the limited liability feature of an LLC.

If doing it yourselfIf using an LLC formation serviceIf hiring an attorney
If you’re DIY, you should shop around to get the best offers when opening an account (such as high-yield savings accounts that will help you earn interest on holdings).If you’re using an online LLC service to create an LLC, the service may offer banking options with popular business bank operators.If hiring an attorney to form your LLC, they may have a list of the top local banks in your locality.

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How to Start a Delaware LLC in 2024 - Step by Step (15)

How to Start a Delaware LLC in 2024 - Step by Step (16)

How to Start a Delaware LLC in 2024 - Step by Step (18)

How to Start a Delaware LLC in 2024 - Step by Step (19)

Cost$0+$0+$0+$49+$0+
Rating

4.9

4.8

3.9

4.2

3.8

Customer Service
Operating Agreement*****
Registered Agent Service**+**
EIN*****
License Reports****
Compliance***
Expert Help**
Tax Advisory**
Tax Preparation***
Guarantee of Acceptance*
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How to Start a Delaware LLC in 2024 - Step by Step (20)

How to Start a Delaware LLC in 2024 - Step by Step (21)

How to Start a Delaware LLC in 2024 - Step by Step (23)

How to Start a Delaware LLC in 2024 - Step by Step (24)

Cost$0+$0+$0+$49+$0+
Rating

4.9

4.8

3.9

4.2

3.8

Customer Service
Operating Agreement*****
Registered Agent Service**+**
EIN*****
License Reports****
Compliance***
Expert Help**
Tax Advisory**
Tax Preparation***
Guarantee of Acceptance*
Start NowStart NowStart NowStart NowStart Now

Getting Business Insurance

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How to Start a Delaware LLC in 2024 - Step by Step (25)

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Business insurance for an LLC is just as important as auto insurance is for your car. The type of insurance and the coverage you’ll need depends on the type of business you have.

For example, an LLC that operates remotely and provides an online service might not need to get full property coverage on their “office space.” However, if the company is selling products that are susceptible to defects, the insurance covering product liability is going to be very important.

Obtaining a Business License

Next you’ll need to apply for an LLC business licensure. Delaware requires LLCs to acquire a business license from the Delaware Department of Revenue, which is not the case in many other states.

Simply create a “One Stop” account and fill out the online forms to do so. Filing fees range from $75 for the first location and $25 for each additional location annually, and take 10 days to process. You will also receive a temporary 60-day license when you file at One Stop.

Some Delaware cities and counties also require you to obtain a business license. Determine if your jurisdiction requires an operating license with your local government agency. If you are operating as a licensed professional within Delaware, you must obtain a license from the Delaware Division of Professional Regulations.

Hiring Employees

If you’re thinking about hiring employees for your Delaware LLC, there are some requirements in place to ensure you’re complying with state regulations. If you hire employees, you’ll need to do the following:

Ways to Start a Delaware LLC

There are three main paths you can take when you get a Delaware LLC. You should choose the path that works best for your business, which will depend on the time you have, the amount of money you want to spend and the complexity of your business structure.

DIY

Like many things, you can choose to form your Delaware LLC yourself. This is a good option for those who have time and patience to complete the filing. While this option will only cost you the filing fee, it may end up being more time-consuming than you bargained for. Also, if you make a mistake, you’ll be responsible for correcting your filing and paying any additional fees charged by the state for processing.

Even if you choose to DIY some of the formation process, you can always use an LLC service for some of the other LLC requirements (e.g., registered agent services, EIN application, operating agreement creation).

LLC Formation Service

If you’re looking for a fast and easy filing process — look no further. Using an online formation service is an excellent choice for entrepreneurs at any point in the Delaware LLC formation process. Bizee, ZenBusiness, Swyft Filings, Northwest Registered Agent and LegalZoom LLC services are all reliable and accurate platforms known for their customizable pricing packages and useful add-on features. With many services you’ll get help every step along the way and the option to chat with an expert if you have any questions. This is a popular choice because it gives you the peace of mind that DIY lacks at a far better price point than the final option. In fact, many of the above-named services will only charge you the same state fees which you would be required to pay if you were to form your business yourself.

Hiring an Attorney

Costing anywhere from $150 to over $1000 per hour (depending on where you’re located), the most expensive path is hiring a business attorney to form your LLC. Business owners that will want to change their tax status, who have financial ties with outside investors or have complex accounting structures might choose to see an attorney when learning how to start an LLC. A simple “LLC lawyer near me” search should find the best local business attorneys in your area. For most businesses the LLC formation service path will be the best option for creating an LLC.

The Bottom Line: Forming an LLC in Delaware

You can quickly create an LLC in Delaware by following a few simple steps. The state offers a wealth of tools, including step-by-step instructions and sample forms to make paperwork easier. Further streamline the process by investigating top LLC formation services.

Frequently Asked Questions about Delaware LLC Formation

LLC is an acronym for “limited liability company.” The basic LLC definition is a business entity with the flexible tax structure of a proprietorship or partnership and the liability protection feature of a corporation.

Delaware is considered one of the most business-friendly states in the union, with regularly updated laws intended to help businesses thrive. The creation and operation of Delaware LLCs is governed by the state’s Limited Liability Company Act, which includes a flexible provision allowing LLCs more contractual freedom to form (and define) certain relationships in operating agreements.

Referred to as the “freedom of contract,” this provision allows LLCs to significantly alter duties owed by LLC members to the LLC and other members. While this can create efficiencies for a business, it also opens the door to abuse by owners. For instance, the operating agreement for a Delaware LLC may waive certain members’ “fiduciary” duties, whereas states like California mandate certain default protections and duties for LLC members.

However, several other states have followed suit with similar contractual freedom rules for LLCs, so it’s not as unique to Delaware as it once was.

One key benefit of forming an LLC in Delaware is greater asset protection. In fact, the only way a creditor may seize an LLC’s assets is by obtaining a “charging order,” which is best described as a court-granted lien. Also, Delaware law doesn’t impose meetings or voting requirements on LLCs, while the startup requirements in general are minimal.

Finally, Delaware offers more privacy than many other states. As an LLC, you aren’t required to disclose the name of the owner to the state, but you are still required to have a registered agent and a designated contact person.

Absolutely, as a non-resident you can still start a Delaware LLC. The state only requires that you maintain a registered agent with a physical office within the state. This is so the state can easily get in contact with the LLC.

If you are creating an LLC in Delaware but will conduct business within a different state, you should check with that state’s laws regarding licensing and taxes to make sure you remain compliant. Some states may even require your LLC to be registered as a foreign LLC to conduct business there.

The total cost for an LLC will depend on the type of business you have. The filing fee for the certificate of formation is $110 and the required business licensure will vary depending on the cities in which you are conducting business.

After filing your certificate of formation, you should expect to wait about 3-4 days to receive approval along with your business identification number.

LLC taxes will depend on how the LLC elects to be taxed. If the LLC maintains its pass-through status, then the member(s) of the LLC will need to pay income tax on the money earned by the LLC. This is in addition to paying the $300 Annual Franchise Tax each year which is due June 1.

Delaware doesn’t require an entity to be physically within the state to conduct business there so long as it is registered within the state and has a registered agent that is physically within the state and accessible.

Thus, a virtual address for LLC purposes (address where the LLC receives mail and provides to those in which it conducts business) would be helpful to maintain a professional look for potential customers and business partners.

A sole proprietorship is owned by a single individual who takes all the business’s profits, debts and liability. A sole proprietor doesn’t need to officially file anything with the state to exist. An LLC is an entity that’s controlled by a single member or any number of members.

An LLC will take all the liability of the business, but the income is passed through to the members who claim their share of the LLC income each year on personal tax returns. To exist, you must file a certificate of formation with the state.

A corporation, also called a C-corp, is owned by shareholders. This entity takes all the liability, income and debt of the business. Shareholders are paid a dividend of the business’s earnings on a regular basis. Corporations pay a corporate tax on their income and the shareholders pay investment income tax on their dividends from the corporation.

Yes, you can start a series LLC. Delaware is one of a few states that recognizes this entity and allows creation through its LLC laws. A series LLC is an entity that houses other smaller entities within it. The smaller entities can be LLCs, corporations or any other business structures.

Under this structure, each individual entity within the series is responsible for its own liability, holds its own accounts and is governed by its own operating agreement. Creating a series LLC as opposed to an ordinary LLC can provide an additional layer of liability protection.

For example, a series LLC, “Big LLC,” holds “LLC 1,” “LLC 2” and “LLC 3.” LLC 3 is sued and loses. Only the holdings of LLC 3 are susceptible to collection by the party that won the lawsuit. However, if all holdings were kept under Big LLC and not within smaller entities, then all the holdings would be susceptible to collection.

Get Expert Help Forming an LLC in Delaware

Starting a new business is exciting, but can also be overwhelming, unless you have the right partner. Find out about affordable online LLC formation services today if you need help with setting up your LLC in Delaware.

How to Start a Delaware LLC in 2024 - Step by Step (26)

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How to Start a Delaware LLC in 2024 - Step by Step (29)

Overall Rating

4.9

4.8

3.9

4.2

Features5.05.03.15.0
Value for Money4.44.43.92.8
Customer Service5.05.04.43.9
Usability5.05.04.23.3
Customer Satisfaction4.44.54.74.6
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How to Start a Delaware LLC in 2024 - Step by Step (30)

How to Start a Delaware LLC in 2024 - Step by Step (31)

How to Start a Delaware LLC in 2024 - Step by Step (33)

Overall Rating

4.9

4.8

3.9

4.2

Features5.05.03.15.0
Value for Money4.44.43.92.8
Customer Service5.05.04.43.9
Usability5.05.04.23.3
Customer Satisfaction4.44.54.74.6
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Methodology: Our System for Ranking the Best LLC Services

To provide consumers with objective and accurate information, our credentialed legal experts created a comprehensive rating system for Limited Liability Company (LLC) services. We researched five online LLC, registered agent and trademark registration services, including ZenBusiness, LegalZoom, Swyft Filings, Northwest Registered Agent and Bizee (formerly Incfile).

We conducted a survey in 2024 of 200 professionals who were currently using LLC services or had used LLC services within the past year. We analyzed the results of this survey to determine the following rating criteria:

  • Features (20%)
  • Value for Money (25%)
  • Customer Service (20%)
  • Usability (25%)
  • Reputation and Credibility (10%)

Visit the full LLC methodology page for more details on our rating system.

Best LLC Services
ZenBusiness ReviewNorthwest Registered Agent Review
Bizee ReviewLegalZoom Review
Rocket Lawyer ReviewLegalShield Review
Inc Authority ReviewTailor Brands Review
Swyft Filings Review


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Legal Disclaimer: This article contains general legal information but does not constitute professional legal advice for your particular situation and should not be interpreted as creating an attorney-client relationship. If you have legal questions, you should seek the advice of an attorney licensed in your jurisdiction.

If you have feedback or questions about this article, please email the MarketWatch Guides team at [email protected].

How to Start a Delaware LLC in 2024 - Step by Step (2024)

FAQs

How do you set up an LLC in Delaware? ›

  1. Step 1: Name Your Delaware LLC. Choose a name for your LLC. ...
  2. Step 2: Designate a Registered Agent. Select a Registered Agent. ...
  3. Step 3: File Your Delaware Certificate of Formation. ...
  4. Step 4: Draft an Operating Agreement. ...
  5. Obtain an Employer Identification Number (EIN)
Jul 26, 2024

How quickly can you form a Delaware LLC? ›

You can form an LLC in Delaware in 2-3 weeks if you file online (or 3-4 weeks if you file by mail). If you need your Delaware LLC faster, you can pay for expedited processing.

How much does it cost to start an LLC in Delaware? ›

Delaware LLC Formation Filing Fee: $110

The filing fee starts at $110, but if you want a certified copy of your Certificate of Formation, you'll need to pay another $50. You can pay an extra $50 and the state will process your documents within 24 hours of receiving them.

Can I open an LLC in Delaware without living there? ›

Yes, a non-resident with no physical address in Delaware can form a Delaware LLC. The State of Delaware only requires the company to have a Registered Agent in Delaware.

Does a Delaware LLC need a physical address? ›

Delaware Law requires every entity to appoint a Registered Agent with a physical office address in the State of Delaware. If the entity is not physically located in Delaware, they must appoint a Registered Agent to fulfill the requirement.

Does a Delaware LLC need an annual meeting? ›

Member and Manager Meetings in Limited Liability Companies

Unlike corporations, neither Texas nor Delaware law require LLCs to hold annual meetings or maintain minutes of meetings if they are held – this holds true for members and managers (FYI, LLCs don't always have managers).

Does Delaware LLC have a filing fee every year? ›

All Domestic and Foreign Limited Liability Companies, Limited Partnerships, and General Partnerships formed or registered in Delaware are required to pay an annual tax of $300.00. There is no requirement to file an Annual Report.

Do I need a business license for a Delaware LLC? ›

Any person or entity conducting a trade or business in the State of Delaware, including corporations, must obtain a State of Delaware Business License from the Delaware Division of Revenue.

What is the income tax rate for an LLC in Delaware? ›

Delaware has an 8.70 percent corporate income tax rate and a state gross receipts tax. Delaware does not have a state sales tax rate.

What are the disadvantages of a Delaware LLC? ›

Some of the disadvantages are:
  • Dual Registration. Suppose you don't reside in or operate your business from Delaware. ...
  • Relatively High Fees. ...
  • Legally Untested Business Structure. ...
  • Tax Benefits May not Favor Small Businesses, and Franchise Tax Can Easily Add up for Big Businesses. ...
  • High Potential for Legal Troubles.
Mar 3, 2023

Does a Delaware LLC need a president? ›

Keep in mind there are no stated required officer positions that a Delaware corporation must have, as opposed to other states. One person can comprise an entire Delaware corporation. Most Delaware companies have at least a president as well as a secretary.

What is the minimum capital for an LLC in Delaware? ›

Are There any Minimum Capital Requirements to Form a Delaware Corporation or LLC? No. Delaware does not have a minimum capital requirement to incorporate a corporation or form an LLC.

Why do people put LLC in Delaware? ›

Delaware LLCs provide liability protection for owners.

When you own a business structured as a properly formed LLC, even if someone wins a judgment against your LLC, the liabilities are enforced against the LLC's property, not your personal property.

Should I form an LLC in my home state or Delaware? ›

Forming an LLC in your home state is the most advantageous option for most businesses, while business-friendly states like Delaware, Nevada, and Wyoming offer additional benefits for certain industries and situations.

Does Delaware allow single members LLC? ›

Yes, a Delaware LLC can have just one Member. An LLC with only one Member is called a Single-Member LLC. Most LLCs are actually Single-Member LLCs. This is because LLCs are easy for solo-entrepreneurs and small business owners to manage.

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