Who can form a Delaware LLC?

Anyone can file a Certificate of Formation with the Delaware Division of Corporations to form a Delaware LLC. An approved person of the LLC prints their name and signs the document under Section 18-204 of Title 6, Chapter 18 of the Delaware Limited Liability Company Act.

What you need to form a Delaware LLC?

You need to file a Certificate of Formation with the Delaware Division of Corporations, and pay the filing fees. Expect to receive a returned date and time-stamped copy of the Delaware Certificate of Formation, and any other certificates sought, anywhere from 1-hour to 10 business days.

After completing the Certificate of Formation, more actions typically need to take place such as:

  • Appoint and hold a first meeting of members
  • Adopt a Working Agreement (sometimes called an LLC Agreement)
  • Make specific tax elections with the IRS

There may be more industry or regulatory specific needs to consider. A corporate kit is a great tool to help the organizer or first members address matters, and uphold corporate compliance.

How to Form a Delaware LLC

Step 1: Draft your Certificate of Formation

Decide if you will draft and file your own Certificate of Formation or if you will have someone else do it or help with it. Although its relatively straightforward, choices exist that fit every personality and every budget.

Here are a few ideas to consider for drafting your Delaware Certificate of Formation:

Do it yourself

Do-it-yourself through education, organization, and document drafting. Based on feedback from our experience staff, beginners often find the DYI alternative overwhelming. In the end, they don’t save much money and waste valuable time. This choice isn’t for everyone. That said, depending on the individual, you may find it a rewarding experience.

Use a service company

There are several good service companies who can help you incorporate. Most of them will charge a fair price to prepare and file your Certificate of Formation. Hiring one to handle the bureaucratic and statutory needs of starting your LLC can end save you time and money. It allows you to focus on what matters most, running and growing your business. Research to make sure you select a service company that will meet your needs now and in the future. In general, a service company should be accessible, reasonable, and back up their work with a guarantee. Most of all they should be able to add value. Give them a call or send them an email. It’s a great way to gauge how they will respond when you need them!

Hire an attorney or CPA

Never underestimate the value that a good attorney or CPA can add. Not only can they give you legal and tax advice in the beginning, they can continue to add value over the lifetime of your corporation. If budgetary issues are of concern, explore how to work with these professionals to get valuable advice.

Many times it is not one solution, but a combination of all above. It is reasonable to say that some DIY research is necessary. Leverage the experience and resources of a good service company that can help start, grow and maintain your business, as well as the advice of your attorney or CPA in any matters that are necessary.

Step 2: Calculate your Costs

The first charge for filing a Delaware LLC is a flat rate of $110.00. The annual franchise tax is also a flat rate of $300.00. With Agents of Delaware no fee incorporation, the cost of doing business as a Delaware LLC is affordable.

What else can impact the cost to file a certificate of formation in Delaware? Here are some of the many that may impact your total costs:

Total Document Pages

If the document is more than 1-page, you must send $9 for each added page.

Extra Certificates

You will receive a stamped “Filed” copy of the filed document. A certified copy or a certificate of good standing may be requested for an extra $50. Apostilles are also available for $80.

Processing Speed

Hurried services are available, ranging from 24 to 1-hour processing.

Last, State fees can vary, depending on your specific needs. Please contact our office about your specific needs so we can help you in controlling your total costs. Additionally, consult our fee chart.

Step 3: Prepare your Certificate of Formation

Prepare the Delaware Certificate of Formation. A Certificate of Formation for a Delaware LLC must meet the needs set forth under Section 18-201 of the Limited Liability Company Act of the State of Delaware. The following are the minimum needs in a DE Certificate of Formation:

LLC Name

The name of the limited liability company exactly as you want it to appear in the official records at the Delaware Division of Corporations. The name must include the words “Limited Liability Company” or the abbreviation “L.L.C.” or the label “LLC”. Agents of Delaware will check name availability in Delaware free. Just send us an email or give us a call and we will be happy to send you the results – all at no cost to you!

Registered Agent Information

The name and street address of the registered agent located in Delaware you are appointing to accept legal papers for the limited liability company.

Execution Block

An approved person of the limited liability company prints their name and signs the document under Section 18-204 of Title 6, Chapter 18 of the Delaware Limited Liability Company Act.

Other Information

This is all the information needed by statute, However, if you need to add more information allowed by statute you may include it the certificate of formation that you draft.

Step 4: File with the Delaware Division of Corporations

Fill out a needed filing memo to go with your certificate of formation. You can send it to the State by mail or courier delivery, or drop it off at the front desk if you happen to be in Dover. Agents of Delaware is one of a handful of commercial registered agents who have a direct electronic connection to the Delaware Division of Corporations. If we are helping you with your certificate of incorporation, electronic filing is FREE!

Step 5: Additional Considerations

Once you’ve received the date and time-stamped copy of the certificate of formation back from the State, your Delaware LLC officially exists. While this is true, there may be some other steps you need to consider for your specific circumstances. Such as:

  • Qualification, Foreign registration, or other jurisdictional filings needed where you are transacting business
  • Business licenses
  • Professional licensing, or other regulatory needs
  • Getting an EIN
  • Opening a bank account
  • Insurance
  • Bookkeeping, accounting, legal, technical or other professional services

Remember, everyone’s circumstances are unique. This list brings to your attention some of the considerations when starting a limited liability company in Delaware and is not all-inclusive.