How to Start an LLC in Delaware

Last updated on 03 Apr 2025

How to Form an LLC in Delaware | Complete Guide

A Step-by-Step Guide

How to Form an LLC in Delaware

Delaware is ranked among the top states for LLC formation because of its friendly corporate laws and well-oiled legal system. Whether you're a business owner starting a small business or a larger entity expanding, creating an LLC in Delaware has several benefits. Follow our comprehensive guide to ensure a smooth and efficient process.

Key Benefits

Business-Friendly Laws

Delaware is known for its business-friendly legal system and corporate laws, making it an attractive state for forming an LLC.

Tax Advantages

Delaware offers significant tax benefits, including no state income tax for Delaware LLCs that don't do business in the state.

Privacy Protection

Delaware provides enhanced privacy for LLC owners, as member/manager names are not required to be listed on formation documents filed with the state.

Formation Process

Select a Distinct Name for Your LLC

The name you select for your Delaware LLC should be distinct and distinguishable from those of other Delaware-registered businesses. It is important to ensure that your LLC name is not already used. You can verify the availability of your business name through the Delaware Division of Corporations' online name search facility.

Required Words: The name should contain "Limited Liability Company" or an abbreviation, like "LLC," "L.L.C.," "Limited," "Ltd.," "Company," or "Co."
Restricted Words: Don't use words that might make your LLC sound like government organizations (e.g., "Treasury" or "State Department").
Permitted Words: Your LLC name may contain "Institute," "Foundation," "Trust," "Union," or "Club," but it should not be confusingly similar to another LLC.
Domain Name: Consider checking the availability of your desired domain name to secure an online presence for your business, even if you're not launching a website right away.

Choose a Registered Agent for Your LLC

Every LLC in Delaware is required to appoint a registered agent. This agent is responsible for receiving official documents, including legal notices, tax forms, and other important communications on behalf of your LLC.

Self-Appointment

Your registered agent may be you, another member of your LLC, or a professional registered agent service. Your agent should have a Delaware address and be accessible during business hours.

Key Requirements

If you hire a registered agent service, make sure they file the "Acceptance of Appointment and Consent to Serve as Registered Agent" form. Your registered agent should be trustworthy, as they will serve as your LLC's main point of contact with the state.

Recommended Registered Agent Services

ZenBusiness

Renowned for its great customer support and simplicity, ZenBusiness provides LLC registration and registered agent services with an all-encompassing online dashboard to manage your business documents.

Great customer support
All-encompassing online dashboard
Comprehensive LLC formation services

Northwest Registered Agent

A reputable provider that provides high-end registered agent services with an emphasis on confidentiality and secure document storage.

Focus on privacy and confidentiality
Secure document storage
Excellent customer service

Submit Your Certificate of Formation to the State

Once you have decided on your LLC name and registered agent, you may submit the Certificate of Formation to the Delaware Division of Corporations. This formally forms your LLC.

Mail Filing

Mail your completed form to:

Delaware Division of Corporations
401 Federal Street, Suite 4
Dover, DE 19901

Online Filing

You can also electronically file your Certificate of Formation through the Delaware Division of Corporations' website.

Filing Fees and Processing Time

Filing Fee: The normal filing fee to form an LLC in Delaware is $90.
Expedited Processing: If you require expedited handling, the following options are available:
- Same-day processing: $100
- 24-hour processing: $50
Processing Time: The standard processing time for mail and online submissions is approximately 10 business days, although expedited options can dramatically expedite the process.
Annual Report Fee: Delaware LLCs must file an annual report and pay an annual franchise tax. The filing fee for the annual report is $300.

After Forming Your LLC in Delaware

Once your LLC is formally established, there are a few next steps to take to keep your business compliant and organized:

Get an EIN: If your LLC will have more than one member, or will be hiring employees, you'll need to get an EIN from the IRS. Even if you're a single-member LLC with no employees, getting an EIN is usually a good idea so you can keep your business finances separate from your personal finances.
Separate Your Personal and Business Finances: Open a separate business bank account for your LLC to keep your personal assets safe. Blending personal and business funds can put your limited liability protection at risk.
Hire a Business Accountant: An accountant can assist with tax filings, bookkeeping, and ensuring compliance with Delaware state tax laws.
Create an Operating Agreement: While Delaware is not legally required to have an LLC operating agreement, it is highly advisable. This agreement delineates the LLC's structure and operating practices and can avoid any future conflicts among members.
Obtain Business Insurance: Depending on the nature of your business, consider obtaining business insurance, including general liability insurance and workers' compensation.

After Formation

Once your LLC is established, take these important steps to maintain good standing and protect your business:

Open a Business Bank Account

Open a separate business bank account for your LLC to keep your personal assets safe. Blending personal and business funds can put your limited liability protection at risk.

Hire a Business Accountant

An accountant can assist with tax filings, bookkeeping, and ensuring compliance with Delaware state tax laws. This is essential for managing your LLC's financial health.

Get Business Insurance

Depending on the nature of your business, consider obtaining business insurance, including general liability insurance and workers' compensation. This provides an additional layer of protection beyond the LLC structure.

File Annual Reports

Delaware LLCs must file an annual report and pay an annual franchise tax. The filing fee for the annual report is $300, and the report must be filed annually on June 1st. Not filing the report can lead to penalties or dissolution of your LLC.

FAQs

What is the fee to file an LLC in Delaware?

The fee to file an LLC in Delaware is $90. Expedited services are also available for an extra fee: $100 for same-day processing and $50 for 24-hour processing.

Do I require a Trade Name (DBA) for my Delaware LLC?

A DBA is not necessary unless you intend to conduct business under a name other than your LLC's name. If you want to do business under another name, you can apply for a DBA by filing the "Registration of Trade, Business & Fictitious Name Certificate" for $25.

How long does it take to become an LLC in Delaware?

The standard processing time for a Delaware LLC formation is around 10 business days, although you can expedite the process for an extra cost. Same-day processing is $100, and 24-hour processing is $50.

Can I be my own registered agent in Delaware?

Yes, you can be your own registered agent if you have a Delaware street address and are present during regular business hours to accept documents. Yet, most companies prefer to engage the services of professional registered agents for dependability and convenience.

Do I require an Employer Identification Number (EIN) for my Delaware LLC?

If your LLC will have more than one member, or will be hiring employees, you'll need to get an EIN from the IRS. Even if you're a single-member LLC with no employees, getting an EIN is usually a good idea so you can keep your business finances separate from your personal finances.

Is an LLC operating agreement required in Delaware?

While Delaware is not legally required to have an LLC operating agreement, it is highly advisable. This agreement delineates the LLC's structure and operating practices and can avoid any future conflicts among members and facilitate a smooth business operation.

Do I have to file an annual report in Delaware?

Yes, Delaware LLCs must file an annual report. The fee is $300, and the report must be filed annually on June 1st. Not filing the report can lead to penalties or dissolution of your LLC.

Ready to Start Your Delaware LLC?

Take the first step toward establishing your business with the protection and benefits of an LLC structure. Our comprehensive guide makes the process simple and straightforward.

Get Started Today