Table of Contents
Start an LLC in Delaware in 5 Simple Steps
Step 1: Create a Delaware LLC.
Step 2: Select a Registered Agent;
Step 3: Submit the Certificate of Formation
Step 4: Draft an Operating Agreement.
Step 5: Obtain an EIN
It is simple to form an LLC in Delaware.
You must submit a Certificate of Formation with the Delaware Department of State to incorporate a Delaware LLC, which costs $90. You may apply both online and by mail. The Certificate of Formation is the legally binding document that establishes your Delaware limited liability corporation.
STEP 1: Give your Delaware LLC a name.
The first and most significant step in forming an LLC in Delaware is deciding on a name. Make certain that the name you chose conforms with Delaware’s naming rules and is readily searched by prospective customers.
1. Follow the naming conventions:
The word “limited liability corporation” or one of its acronyms must be in your name (LLC or L.L.C.).
Your LLC’s name cannot include terms that may be confused with a government organisation (FBI, Treasury, State Department, etc.).
Restricted terms (e.g., bank, attorney, university) may need extra documentation and the participation of a licenced professional, such as a doctor or lawyer, in your LLC.
Your firm’s name must be distinct from that of any other Delaware limited liability company, corporation, partnership, or limited partnership.
2. Does the name exist in Delaware? Check the Delaware Entity Search on the Department of State’s website to make sure the name you choose isn’t already in use.
3. Is the URL accessible? We suggest checking online to see whether your company name is accessible as a web domain. Even if you don’t intend to create a company website right away, you may wish to purchase the URL to prevent others from doing so.
STEP 2: Select a Delaware Registered Agent
You must choose a Delaware registered agent for your LLC.
What exactly is a registered agent? A registered agent is a person or corporate organisation that receives vital tax forms, legal papers, lawsuit notices, and other government communication on your behalf. Consider your registered agent to be your company’s point of contact with the state.
Who is eligible to be a registered agent? A registered agent must be a Delaware person or a company, such as a registered agent service, that is permitted to do business in Delaware. You may choose someone from your organisation, even yourself.
STEP 3: Submit the Delaware LLC Formation Certificate.
To form an LLC in Delaware, you must submit a Certificate of Formation to the Department of State. You may apply both online and by mail.
STEP 4: Draft an Operating Agreement for Your Delaware LLC
An operating agreement is not necessary for a Delaware LLC, although it is recommended.
What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.
Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.
STEP 5: Apply for a Delaware LLC EIN.
What exactly is an EIN? EIN is an acronym that stands for Employer Identification Number. EINs are nine-digit numbers provided by the Internal Revenue Service (IRS) to companies to assist them be identified for tax reasons. It is basically a business’s Social Security number.
An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).
Why do I need an EIN? An EIN is necessary in order to:
Establish a business bank account.
Filing and managing federal and state income taxes
Employ people
What if my single proprietorship already has an EIN? When transitioning a sole proprietorship to an LLC, the IRS demands a new EIN.
Where can I get an EIN? The IRS will provide you an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or by mail.