Forming a Delaware LLC

Form a Delaware LLC Now

A Delaware LLC (aka Delaware limited liability company) is a type of business entity that is created by filing the proper Certificate of Formation with the Delaware Secretary of State.

Why form a Delaware LLC?

A Delaware LLC is an extremely flexible business entity with low start-up costs and an affordable Franchise Tax.

The Delaware LLC is a truly unique business entity in that the structure of the company and the rules that govern the members, or owners, of the company are contained in a contract called the operating agreement, which is drafted by the company's members.

The operating agreement can be customized to provide for whatever terms the members and/or founders want, subject to law and public policy.

LLCs offer members asset protection against liability and creditors, since a limitation on personal liability means that LLC members cannot be held responsible for a sum higher than hiser initial investment in the LLC, even if a member participates in management (as opposed to protections in a limited partnership).

In 1998, 30,793 LLCs were formed in Delaware. By 2018, the number of Delaware LLCs had grown to 157,142.

why form a delaware llc

Forming an LLC in Delaware

Step 1: Choose a Company Name for your LLC

The name of your Delaware LLC must be unique and available in the State of Delaware. This can be checked for free through our website.

Choose your company name carefully. This will be the foundation of your brand identity. You should consider how your company name will look, not only in print but also on a logo, on a sign, on business cards and on social media.

You may also want to check the availability of a website domain name using your company name. If it’s not available, most domain registrars will suggest similar alternatives.

Step 2: File Your Certificate of Formation

This is the process commonly referred to as “incorporating.” It is the formal creation of your LLC by the Delaware Secretary of State. Once the Certificate of Formation is filed and accepted, you officially own your company!

We offer several incorporation packages, starting at just $179, which includes all state fees AND your first year of Delaware Registered Agent service, which is required by the State of Delaware. See our options for domestic (U.S.) and International formations.

Step 3: Get a Federal Tax ID

If your company will realizing any U.S.-sourced income, you will be required to have a Federal Tax ID number, also know as an Employer Identification Number (EIN). This number is assigned by the Internal Revenue Service (IRS) and we offer assistance in applying for your EIN as an add-on to the incorporation packages.

Step 4: Get required licenses and permits

Generally, regardless of what type of business you own, you are going to need to obtain and maintain a business license (and possibly more than one). Special permits may also be required, depending on local and federal regulations and your particular industry.

It is wise to ensure you have the appropriate licenses and permits before you begin operating to prevent penalties for non-compliance. We do not offer license assistance, but you can contact LicenseLogix for help.

Step 5: Create an Operating Agreement

The LLC Operating Agreement is a required and foundational document for the company. It allows it’s owners, known as members, to establish ownership shares, responsibilities, and any other terms they wish to formalize. In Delaware, this document is maintained internally by the LLC (not filed with the state or on public record), but is still permissible in court and respected in most cases.

We offer a variety of templates to help get you started with your Operating Agreement.

Step 6: Open a business bank account

Opening a business bank account is vital to maintaining a “wall” between your personal assets and business assets. If you mix the two in the same account, you risk having your personal assets vulnerable to liabilities (such as lawsuits) of your business.

Delaware company owners can open a bank account wherever it is most convenient for them, which is generally their home state and/or where they are doing business. A Delaware LLC owner living in another state can open a bank account in that state. An LLC owner in another country can also use a bank local to them – and this is frequently much simpler than opening a U.S. account.

Step 7: Authority to Do Business in Other States

You will need to get a Certificate of Authority for your business to do business in another state (besides the one in which it is registered) before beginning your operations there. This is known as Foreign Qualification and the exact process varies from state to state.

Refer to our summary of requirements for each specific state for more information on what you'll need and what exactly constitutes "doing business."

Form a Delaware LLC with Harvard Business Services, Inc.

Forming an LLC in Delaware is easy with Harvard Business Services, Inc. If you are ready to form a Delaware limited liability company with us today, simply navigate to our form your Delaware LLC page. You can form a Delaware LLC in just a few minutes, and pay online with PayPal or any major credit card.

If you're still unsure about setting up a Delaware LLC with us, these five reasons clarify why we are the leading Delaware business formation company and your best choice of a Delaware Registered Agent.

  1. Experience: In our 35 years in business, we have formed over 150,000 Delaware companies for clients worldwide.
  2. Easy Filings: We are one of the few Delaware Registered Agents approved by the Delaware Secretary of State. Thus we maintain a direct, online connection to the Division of Corporations, which allows us to quickly and efficiently file your Certificate of Formation at a reasonable cost.
  3. Free LLC Operating Agreement Templates*:  We provide you with a free, digital selection of LLC Operating Agreement templates, as well as other basic template forms.
  4. Lowest Registered Agent Fee:  We guarantee your Registered Agent fee will remain $50 per year, per company, as long as your LLC remains in good standing. This means your total cost to maintain your LLC in Delaware is only $350 per year ($300 for annual Franchise Tax, plus $50 for the Registered Agent fee). Learn more about annual fees here.
  5. Free Lifetime Customer Support:  Our experienced and helpful LLC formation experts are happy to answer your questions via phone (1-800-345-2677), email or live chat.
Form a Delaware LLC Now

 

When you form your Delaware LLC through Harvard Business Services, Inc., our Corporate Kit, which is included in the Standard package, will provide you with an Operating Agreement to customize to your specific business needs. You can download a PDF of a single-member Operating Agreement here or a member-managed Operating Agreement here.

*THE TEMPLATE DOCUMENTS ARE PROVIDED "AS IS", "AS AVAILABLE", AND WITH "ALL FAULTS", AND HARVARD BUSINESS SERVICES, INC. DISCLAIMS ANY WARRANTIES, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

After Forming a Delaware LLC

After forming your Delaware LLC, the next step is usually to obtain your Federal Tax ID Number. Then, you file for a Certificate of Authority in order to do business in your home state and open a business bank account. Read more about the steps to take in our guide to “After Forming Your Company."

 

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Since 1981, Harvard Business Services, Inc. has helped form 229,141 Delaware corporations and LLCs for people all over the world.

Registered Agent Service

Harvard Business Services, Inc. guarantees your annual Delaware Registered Agent Fee will remain fixed at $50 per company, per year, for the life of your company.