Delaware LLC Costs – How Much to Form a Delaware LLC?
A Delaware Limited Liability Corporation (LLC) costs $90 to form online. When submitting the LLC’s Certificate of Formation, this fee is paid to the Delaware Department of State.
If you want to skip the hassle of starting a Delaware LLC yourself, consider using help:
We also suggest checking out our full Delaware LLC startup guide.
- Jump Down to Best Price Offers for Delware LLC
- How Much Does it Cost to Form a Foreign LLC in Delaware?
- How to Form a Delaware LLC on Your Own
- Step 1: Create a Name for Your Delaware LLC (Price: $50)
- Step 2: Select a Means for Your LLC’s Registered Agent ($0-$120)
- Step 3: Fill Out and Submit a Certificate of Formation (Price: $90)
- Step 4: Create an Operating Agreement (Price: FREE)
- Step 5: Obtain an Employer Identification Number (EIN) (Price: FREE)
- Selecting the Right Registered Agent in Delaware
- It’s Simple to File a Delaware Certificate of Formation!
- Operating Agreement For Delaware LLC
- FAQ: Fees and Costs of Forming a Delaware LLC
- Entrepreneurial Terminology You Should Know When Starting a DE LLC
- Get Professional Help in Forming an LLC in Delaware
The Fee for Filing a Delaware LLC Online is $90
The $90 price to file your LLC’s Certificate of Formation online with the Delaware Department of State is the most expensive aspect of incorporating an LLC.
Franchise Tax in Delaware is $300
In Delaware, all limited liability companies (LLCs) must file and pay a $300 annual franchise tax. This may be done over the internet.
If you miss the June 1 deadline, you will be charged a penalty of $200 plus 1.5 percent interest each month.
Fee for a Registered Agent ($0-120)
You may be your own registered agent in Delaware, but hiring a registered agent service keeps your business compliant and informs you of critical filing dates so you don’t miss them.
For the first year, registered agent costs start at $39 per year. We suggest that you use:
- ZenBusiness offers the finest package for forming a new business and becoming a registered agent: $39 plus state costs.
- Or use Northwest Registered Agent for $35/mo + state fees.
How Much Does it Cost to Form a Foreign LLC in Delaware?
If you currently have an LLC in another state and want to extend your business into Delaware, you’ll need to register it as a foreign LLC in Delaware.
The registration fee for a Delaware foreign LLC is $200. A Certificate of Registration of Foreign Limited Liability Company can be filed online or by mail to register a foreign LLC in Delaware.
Permits and Licenses for Businesses
Your business may require federal, state, and municipal permits/licenses to lawfully operate in Delaware, depending on your industry and geographic area. This is true whether you create a limited liability company (LLC) or any other sort of business entity.
Other Fees for Forming a Delaware LLC
There are a few extra costs involved with forming an LLC:
How to Form a Delaware LLC on Your Own
Forming a Delaware LLC, you’ll need to pay $90 to the Delaware Department of State for a Certificate of Formation. You have the option of applying online or by mail. The Certificate of Formation is the legally binding document that establishes your Delaware limited liability corporation.
To get started, follow our step-by-step How to Start an LLC in Delaware guide.
Step 1: Create a Name for Your Delaware LLC (Price: $50)
The first and most significant step in forming an LLC in Delaware is deciding on a name.
When naming your Delaware LLC, make sure it meets the following criteria:
- In the state of Delaware, it’s legal to use.
- It complies with Delaware’s name regulations.
- Is it possible to purchase a web domain?
Make sure your name meets Delaware’s naming regulations and is easily searched by potential clients.
1. Stick to the following 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 contain any words that may be mistaken for a government organization (FBI, Treasury, State Department, etc.).
- Restricted terms (e.g., bank, attorney, university) may necessitate additional documentation and the inclusion of a licensed professional in your LLC, such as a doctor or lawyer. Any Delaware limited liability company, corporation, partnership, or limited partnership must have a name that is distinct from any other Delaware limited liability company, corporation, collaboration, or limited partnership.
2. Is it possible to get the name in Delaware? Do a Delaware Entity Search on the Department of State’s website to be sure the name you desire isn’t already used.
3. Is it possible to get the URL? We suggest looking 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 now, you may wish to purchase the URL to prevent others from doing so.
Step 2: Select a Means for Your LLC’s Registered Agent ($0-$120)
A registered agent is required for all Delaware LLCs. The principal point of contact for your LLC with the state is a registered agent. They are also in charge of accepting service of process in the event that your company is sued.
The cost of a registered agent service mostly starts from $0 for the 1st year by using ZenBusiness or Northwest. Later, the fee is around $120 USD per year.
Your Delaware registered agent must comply with the following requirements:
- You must be at least 18 years old.
- Have a Delaware physical address
- Be ready to accept service of process during regular business hours.
Step 3: Fill Out and Submit a Certificate of Formation (Price: $90)
The Delaware Certificate of Formation is a document that must be filed with the Delaware Department of State in order to incorporate an LLC. A Certificate of Formation costs $90 to file online.
State filing fees are $90 and must be paid to the Department of State.
Corporations Division of Delaware
401 Federal St., Washington, D.C.
Suite No. 4
Dover, DE 19901
Step 4: Create an Operating Agreement (Price: FREE)
An operating agreement is essential for Delaware LLCs to be created and maintained.
What is the definition of an operating agreement? An operating agreement is a legal document that spells out an LLC’s ownership and running processes.
What are the benefits of operating agreements? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.
Step 5: Obtain an Employer Identification Number (EIN) (Price: FREE)
What is an EIN number? Employer Identification Number (EIN) is an acronym for Employer Identification Number. The Internal Revenue Service (IRS) assigns EINs to businesses to assist them be identified for tax reasons. It’s essentially a business’s version of a Social Security number.
A Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN) is another name for an EIN (FTIN).
What is the purpose of having an EIN? An EIN is necessary for the following purposes:
- Open a bank account for your business.
- Taxes are filed and managed at the federal and state levels.
- Employ people.
What if my single proprietorship already has an EIN? When changing to an LLC, the IRS requires sole proprietorships to get a new EIN.
Selecting the Right Registered Agent in Delaware
Every formal business in Delaware is obliged by law to have a Delaware registered agent. A registered agent receives any official documents from the State of Delaware, as well as any service of process that may be served on a business in the course of litigation.
We’ll go over everything about what a registered agent is, what they perform, and how to choose one in our Delaware Registered Agent tutorial.
What Is A Delaware Registered Agent?
A Delaware registered agent is an individual or corporate organization that serves as your company’s point of contact for:
All correspondence with the State of Delaware, including the Delaware Annual Franchise Tax and certificate of good standing.
In every litigation, receives all services of the process for the company.
A registered agent is needed by law for any formal business in Delaware, such as an LLC, corporation, or partnership.
Is it possible for me to act as my own registered agent in Delaware?
Yes, any business owner or employee who is over the age of 18 and has a Delaware street address can serve as the company’s registered agent in Delaware.
You might even elect a member of your LLC, or even a trusted friend, as long as they match these standards as well.
Many firms, however, choose to employ a registered agent service.
Why Do Companies Hire a Delaware Registered Agent?
When forming an LLC, many firms prefer to employ a registered agent service for a variety of reasons. Here are a few of them:
A registered agent service will keep track of your compliance requirements and will notify you when yearly reports or other files are due, as well as assist you in submitting them.
This helps you avoid fines and keeps your business in good standing, both of which are necessary for maintaining your limited liability protection.
If you do not reply swiftly to service of process, you may face legal challenges, costs, or other concerns. Your papers will be scanned, shared with you online, and you will be notified when they are ready.
If you function as your own registered agent and work from home or a private office, your address will be made public on the Delaware General Information Name Search.
A registered agent service will use their own address instead of yours if you value your privacy.
Receiving service of process for a lawsuit at your place of business can be a delicate circumstance to deal with in front of your staff and customers.
A registered agent will accept any service of process and other papers at their office and quietly deliver them to you online to avoid this problem.
You must be available at all times throughout normal business hours, every working day of the year, if you are your own registered agent.
Registered agent services have actual offices and employ personnel to cover those hours, allowing them to be accessible when needed.
Hiring a registered agent service gives you more flexibility in terms of working hours and locations. So go on a holiday, work from home or the office, or tour the world knowing that your paperwork will be taken care of.
A reputable registered agent service will scan your papers as soon as they arrive, preserving a digital record of all your company documents as well as any service of process on a user-friendly dashboard.
If you hired an LLC creation provider, you’ll most likely employ them as your registered agent as well. As a result, a copy of your formation paperwork will be available online as well.
When you need to conduct things for your business, such as create a business bank account, apply for a business credit card, apply for small business loans, and many other things that require a copy of your paperwork, having all of this information available as PDFs is really beneficial.
Coverage around the United States
A registered agent is required for your foreign LLC or other company if you want to grow your business into other states, such as by employing an out-of-state employee or opening a new sales office.
Most registered agent services are available in all 50 states and Washington, D.C.; simply pay a small fee for each additional state, and they will transmit all of your paperwork to the same online dashboard.
What Does it Cost to Hire a Registered Agent?
The annual cost of using a registered agent service is normally between $50 and $300. When you consider how much time you’ll save, this is a modest amount to pay – it’s definitely worth it.
It’s Simple to File a Delaware Certificate of Formation!
We’ll walk you through the Delaware LLC Articles of Organization in three simple steps.
Step 1: Obtain your Formation Certificate
You have the option of filing your Delaware Certificate of Formation by mail or online. Whatever option you choose, you must first download the Certificate of Formation PDF and fill out the required parts.
OPTION 1: Open an account with Delaware One Stop. Select “Set Up Your Business’s Legal Structure” from the top “Start” option after logging in. Then choose “Create Your Legal Structure.”
OPTION 2: Go to the Delaware Department of State’s website and get the Certificate of Formation in PDF format.
Step 2: Fill out the Certificate of Formation
We’ll walk you through filling out the Delaware Certificate of Formation form in this stage.
To finish each article, you’ll need to know the following information:
1. Name of the Entity
It’s crucial to have a distinctive and clever business name, but it’s not as important as having a legally proper name.
When selecting a name for your company, be certain that the name:
- The name complies with Delaware’s naming regulations.
- Isn’t being used by another company in Delaware?
The Delaware Naming Guidelines that should be followed:
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 contain any words that may be mistaken for a government organization (FBI, Treasury, State Department, etc.).
- The terms Company, Association, Club, Foundation, Fund, Institute, Society, Union, Syndicate, Limited, Public Benefit, or Trust may appear in your name.
- Unless the firm is licensed as a bank by the state, your name cannot contain the term “bank” or any version of it. However, if the context clearly does not relate to a banking business or misleads the public about the nature of the firm, the word “bank” or any version of it can be used. Bank Shot Basketball LLC is an example of approved use.
- Your business name must be distinct from any other in the state.
2. Check Availability of Names:
Is your given name accessible in the state of Delaware? Do a name search on the Delaware Division of Corporations website to be sure the name you choose isn’t already used.
3. Registered Office and Registered Agent
A registered agent is a person who receives and sends legal paperwork on behalf of your LLC. Your registered agent and registered office must be included when you form your Delaware LLC.
Any Delaware resident over the age of 18 can serve as your registered agent. During regular business hours, your registered agent must be present in the registered office. A P.O. box cannot be used as your registered office address.
Step 3: Submit the Formation Certificate
The Certificate of Formation must be filed with the Secretary of State in order to register your LLC.
You can file your Certificate of Formation in one of two ways:
Create a PDF copy and upload it on the internet.
Send or deliver a physical copy of your application via mail or in person.
OPTION 1: Use Delaware One Stop to file your paperwork online. Select “Set Up Your Business’s Legal Structure” from the top “Start” option after logging in. Then choose “Set Up Your Legal Structure,” fill in the appropriate fields, sign the paper, and submit a PDF copy.
OPTION 2: Use the Delaware Department of State’s downloaded form to file by mail.
The cost of filing with the state once again is $90.
Corporations Division of Delaware
401 Federal St., Washington, D.C.
Suite No. 4
Dover, DE 19901 is a town in the state of Delaware.
Turnaround Time: Typical processing time is 10 to 15 business days, but you can expedite the processing for an additional fee.
Operating Agreement For Delaware LLC
An operating agreement should be in place for every Delaware LLC owner to secure their company’s activities. An operating agreement will create clear standards and expectations for your LLC while establishing your legitimacy as a legal company, in addition to being legally needed by the state.
We’ll provide you free tools and templates to get your Delaware LLC operating agreement started in this tutorial.
What is a Delaware LLC Operating Agreement?
An LLC’s ownership structure and running processes are outlined in an operating agreement, which is a legal document.
Your operating agreement should include all of the items below, whether you’re creating a single-member or multi-member LLC. Some of these provisions will have little impact on the day-to-day activities of a single-member LLC, but they must be included for the sake of legal etiquette.
Organization: When the LLC was legally founded, who its members are, and how ownership is distributed are all things to consider. Multi-member LLCs might have an equal ownership structure or allocate different “units” of ownership to different members.
Management & Voting: Whether the LLC will be run by its members or by a manager designated by them, and how members will vote on business concerns. Each member usually has one vote, but you may want to give certain members greater authority than others. Read our Member-Managed vs. Manager-Managed guide for additional information on managing your LLC.
Capital Contributions: The amount of money that each member has put into the company. This is also the time to plan how you can raise extra cash in the future.
Distributions: How will the earnings and losses be distributed among the members? The most popular method is to equitably divide earnings. You should specify how you want them divided in your operating agreement if you want them shared differently. Read our Contributions and Distributions guide for additional information on the fundamentals of LLC ownership.
Changes to the Membership Structure: How will duties and ownership be transferred if a member departs the organization? In the LLC’s governing document, it’s critical to spell out the procedure for buying out and/or replacing a member.
Dissolution: If all of the members of your LLC decide that you no longer want to do business, you should dissolve it formally. The procedure of hypothetically dissolving your company is a crucial part of your operating agreement. Read our Delaware LLC Dissolution article to understand how to dissolve your Delaware LLC.
What are the Benefits of Having a Delaware Operating Agreement?
You’ll need an operating agreement regardless of the sort of Delaware LLC you’re forming. This is why:
- The state has recommended it. All members of a Delaware LLC may engage up an operating agreement to control the company’s internal activities, according to Delaware Limited Liability Company Act Section 18-101(7).
- It will keep your business partners from fighting. If you’re forming a multi-member LLC, having an operating agreement in place will help you avoid misunderstandings by defining each partner’s position and obligations.
- It aids in the preservation of your limited liability status. If you’re the only owner of a Delaware single-member LLC, having an operating agreement will assist to guarantee that your limited liability status is sustained by court authorities, as well as contribute to your company’s overall credibility.
The following are some examples of templates:
- Single-Member Operating Agreement: For LLCs with only one member.
- Multi-Member Operating Agreement (Member-Managed): For LLCs with several members that want to operate the business together.
- Multi-Member Operating Agreement (Manager-Managed): For LLCs with numerous members who want to appoint one or more managers to run the firm on a daily basis.
By completing a few basic questions, the Operating Agreement Tool makes it simple to establish a unique operating agreement for your organization.
After You’ve Completed the Delaware LLC Operating Agreement,
You do not need to submit your operating agreement with your state once you’ve finalized it. Keep a copy for your records and distribute copies to your LLC members.
It’s a good idea to examine and consider changing the operating agreement after every big corporate event, such as the addition or removal of a member. Depending on how your operating agreement is worded, an update to the contract may require the approval of some or all of the members.
FAQ: Fees and Costs of Forming a Delaware LLC
Is it necessary to pay a fee for a Delaware LLC every year?
Every year, Delaware LLCs must pay a $300 state franchise tax.
Is it really required to form a limited liability company (LLC)?
A limited liability company (LLC) offers limited liability protection. This implies that in the case of a business loss, such as a lawsuit or unpaid debt, an LLC protects your personal assets.
Any small firm with even the tiniest degree of risk or liability should incorporate an LLC, according to us.
What is the most cost-effective approach to form an LLC?
By completing the formation procedure yourself, creating your own operating agreement, acting as your own Agent for Service of Process, and obtaining your own EIN, you may save money on an LLC.
Is it possible for me to pay myself a salary from my LLC?
You can pay yourself a salary from your LLC, but if your LLC is taxed in the IRS’s default manner, it would be referred to as a draw or distribution.
Is it truly necessary for me to have an operating agreement?
Yes. An operating agreement is necessary for all multi-member Delaware LLCs, even if you don’t register it with the state.
When should my operating agreement be written?
While it’s a good idea to draft an operating agreement before filing your Certificate of Formation, the state doesn’t prevent LLCs from waiting until the procedure is finished. It’s worth mentioning that in order to create a business bank account, some banks ask you to present an operating agreement.
Is it necessary for me to register my operating agreement with the state?
No. The LLC members are required to keep their operating agreements. Your operating agreement will be returned to you unfiled if you try to file it with the Delaware Division of Corporations.
Is a S corporation preferable than an LLC?
An S corporation (S corp) is a tax status administered by the Internal Revenue Service, not a form of commercial entity. An LLC can be taxed either as a regular corporation or as a S corporation. Being taxed as a S corporation might make a lot of sense for some firms.
Which is preferable: a single proprietorship or an LLC?
Because sole proprietorships do not provide any liability protection, they are only suitable for enterprises with a very low risk of liability.
Entrepreneurial Terminology You Should Know When Starting a DE LLC
LLC: A limited liability company (LLC) is a type of business structure in the United States that combines the personal liability protection of a corporation with the taxation benefits of a sole proprietorship or partnership.
A DBA, or Doing Business As name, is any name that a company uses that isn’t its official name.
Personal liability protection is not provided by a Partnership, which is an informal company entity controlled by more than one person.
Get Professional Help in Forming an LLC in Delaware
It can be difficult and time-consuming to form an LLC. It might be beneficial to have some assistance, and we’ve compiled a list of two of the top LLC creation services available.
#1 – ZenBusiness can help you form a limited liability company in Delaware
ZenBusiness provides LLC creation services at a low cost and with a number of useful features. Most LLCs will benefit from two of these aspects in particular. All of ZenBusiness’s products include a year of complimentary registered agent service. With their Pro and Premium Packages, they offer ensure worry-free compliance. ZenBusiness will file your yearly report and notify you if there is anything further you need to do to be in compliance with the state under this assurance. For $119 per year, those with the basic package can purchase worry-free compliance.
ZenBusiness will help you form an LLC for $49. They have a customer satisfaction rating of 98 percent and over 4500 verified reviews.
Check out the full Zenbusiness review here.
Review count: 4500+
Form an LLC today with ZenBusiness for only $49. They Have 98% customer satisfaction rating and over 4500+ verified reviews.
#2 – Create an LLC in Delaware using Northwest Registered Agent
With decades of expertise, Northwest Registered Agent is an exceptional LLC creation service. They deliver excellent, well-informed customer service. Their biggest benefit, though, is the seclusion they provide. They don’t outsource any of their services to third parties, don’t sell your information, and even build their own code.
Nortwest can help you form an LLC right now. They have a customer satisfaction rating of 98 percent and over 4150 verified reviews. They’ll come with a complimentary year of registered agent service!
Here’s an in-depth Northwest Registered Agent review.
Review count: 4850+
Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!
In the event of a lawsuit or business collapse, forming a Delaware LLC is a fantastic method to safeguard your personal assets. Fortunately, Delaware makes forming an LLC simple and offers a favorable business climate. If you want to create a Delaware LLC, simply follow the instructions above and you’ll be up and running in no time.
And as you can see it’s not that expensive or costly. Most of the costs will be covered for the 1st year if you use our recommended LLC services mentioned above.
Alternatively, you may hire one of the professional services listed above to get everything taken care of for you.