Legal Bueno

    How to Start Your LLC in Delaware

    Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!

    Quick Summary:

    • Filing Fee: $90
    • Turnaround time: 10 business days

    How do I start an LLC in Delaware?

    Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.

    If you want to check the name availability for Delaware, visit https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx.

    After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.

    What are the costs & processing times of starting a business in Delaware?

    Here's the rundown for Delaware:

    • The filing fee is: $90
    • There are ongoing fees of $300 (every year)
    • It usually takes 10 business days if you're filing online or 10 business days (plus mail time) if by mail.

    Why Delaware is a great state for your LLC

    Starting a company in Delaware offers numerous strategic advantages that make it an attractive option for entrepreneurs. Here are some of the key benefits:

    • Incentives and Grants: Delaware has several programs, such as the EDGE Grant, designed to support small businesses. These grants provide access to significant capital, giving startups a financial edge.
    • Easy Formation of LLCs: Forming a Delaware limited liability company (LLC) is often the fastest and simplest option. This streamlined process is ideal for startups and small to medium-sized businesses.
    • Regulatory Simplicity: The state has simplified rules and regulations governing LLCs, allowing entrepreneurs to manage their businesses efficiently and stay compliant without unnecessary complexity.
    • Tax Advantages: Delaware's tax framework facilitates easier filing processes and may provide beneficial tax treatment, making it simpler for businesses to navigate their tax obligations.
    • Liability Protection: Starting an LLC in Delaware helps protect personal assets by limiting liability. This means that business debts and liabilities do not put personal finances at risk.
    • Affordability: The cost to file for an LLC in Delaware is relatively low, at just $140, making it a cost-effective choice for new businesses.

    These factors collectively contribute to Delaware being a favored state for entrepreneurs looking to establish their companies with favorable conditions.

    Legal Requirements

    Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for Delaware:

    Articles of Organization

    A certificate of formation must include:1. The name of the LLC;

    1. The address of the registered office and the name and address of the registered agent for service of process; and
    2. Any other matters the members determine to include.

    Del. Code tit. 6, § 18-201

    Filing fee: $90

    Filing Process

    After you've prepared the initial formation documents, you need to file it! Here is what Delaware laws require for filing:

    Any certificate of formation, amendment, cancellation or any other specified document must be filed with the secretary of state. A person who executes a certificate as an agent or fiduciary does not need to exhibit evidence of that person's authority as a prerequisite to filing. Any signature on any certificate authorized to be filed with the secretary of state may be a facsimile, a conformed signature or an electronically transmitted signature.

    Unless the secretary of state finds that any certificate does not conform to law, upon receipt of all filing fees required by law the secretary of state must:1. Certify that the certificate has been filed in the secretary of state's office by endorsing upon the signed certificate the word “Filed,” and the date and time of the filing;

    1. File and index the endorsed certificate;
    2. Prepare and return to the person who filed it or that person's representative a copy of the signed certificate, similarly endorsed, and certify such copy as a true copy of the signed certificate; and
    3. Cause to be entered such information from the certificate as the secretary of state deems appropriate into the Delaware Corporation Information System or any successor system, and such information and a copy of such certificate will be permanently maintained as a public record on a suitable medium.

    Del. Code tit. 6, § 18-206

    Additional Legal Considerations

    Here are some additional relevant laws that might be useful when operating your business in Delaware:

    Series LLC Provisions

    Del. Code Ann. tit. 6, § 8-215

    DE Series Registration