In this article, we'll show you step-by-step how to apply for an LLC in Delaware by giving you links to all of the forms, with advice on how to save money by doing it yourself!
It's a lot easier to apply for an LLC in Delaware than you might think, and if you have the time to spend learning how to do it, you can avoid using a third-party service.
By free, we mean filing the application forms yourself without an LLC formation company. State filing fees may still apply.
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It's hard to pick just one service that will be suitable for every business formation need.
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As the world is becoming more and more digital, the process of applying for an LLC in Delaware is not as daunting as it once was.
That said, we are still talking about the U.S. government so there will be a fair amount of process and paperwork to complete.
Make you that you take the time to really read this article a couple of times to fully understand everything you need to do. Any mistakes can delay your application and your company will have to wait before you can start trading.
Applying for an LLC for your business is not a requirement, and you can start trading without one as a sole proprietor if you want to.
For most businesses, though, the Limited Liability Company (LLC) company entity provides a lot of benefits that will protect you.
The most obvious one is that you have liability protection (the clue is in the name Limited Liability) against business debts, lawsuits, or other unforeseen issues.
As an LLC, your personal assets would be protected against these events, where as a sole proprietor, you could potentially lose those assets in a lawsuit or as part of a debt repayment to creditors.
Another benefit down the road might be that you can purchase assets in the business, such as real estate, which keeps them separate from your personal assets. This allows you to reduce tax liability through investment.
The bottom line is that, while you don't need to form an LLC, it's very much advised for the protections and benefits it provides you.
The first step when applying for an LLC is actually having something to name your LLC. To do this, you'll need to perform something called a "business entity search".
What this means is that you need to check whether or not the name you want to use for your Delaware LLC is available and not being used by another business.
The abbreviations “LLC” or “L.L.C.” must be used at the end of your name. Because an LLC is not a Corporation, your desired name cannot use the word “Corporation”, “Incorporated,” or their abbreviations (“Corp.”, “Inc.”). Your desired LLC name must be “distinguishable“.
Click the button below to check your LLC name with the Delaware Secretary of State.
Check your LLC name Naming rulesOnce you have an LLC name for your business that you're sure isn't being used by anybody else, you need to pick a designator to be added to the end of it.
The rules vary by state, so to make sure you're covered by Delaware laws, the best option here is to pick something from the list below:
To ensure you fully follow Delaware state law, make sure the click the naming rules link above.
Make sure you do not use a designator that makes it look like your LLC is a different type of business entity. If you try to use designators like Inc, Incorporated, LP, LLP etc, your application will be rejected.
When applying for an LLC in Delaware, you will need to have a Registered Agent listed on your Certification of Formation.
A Registered Agent is a person or company that is legally responsible for receiving legal and tax documents on behalf of your business.
Our recommended LLC formation services, Incfile and ZenBusiness, will provide you with a Registered Agent for your LLC. In most cases, this is free for the first year of service.
At this point, you're ready to actually file your Certificate of Formation form with the state of Delaware and get your LLC officially formed.
Let's take a look at the mandatory filing fees for applying for an LLC in Delaware, and the methods you can use to file your form.
The fees you will pay when applying for an LLC in Delaware are: LLC formation cost fee of $90 and Annual franchise tax fee of $300.
The table below shows the primary state filing fees for applying for an LLC in Delaware.
| Filing fee | Renewal fee | Renewal period (years) |
|---|---|---|
| $90 | $300 | 1 |
Delaware LLCs do not have to file an Annual Report (like Corporations do), but they do have to pay a flat-rate Annual Franchise Tax of $300 each year.
The easiest and most popular way to apply for an LLC in Delaware is to file online.
When you file online in Delaware, your application will improved instantly.
You can file your LLC online with the Delaware Secretary of State. This is a great way to speed up the process and avoid any long waiting times.
Alternatively, you can save hours of your time by using a formation service like ZenBusiness.
Use ZenBusiness File onlineApproval times for your LLC formation will vary depending on the state and the current workload of the Secretary of State. The above times are an estimate and are not guaranteed.
An Operating Agreement is a legal document that sets out the rules and regulations for a business, including who owns it, how much each member owns, how profits are split, and more.
When you apply for an LLC in Delaware, an Operating Agreement is required as part of your application.
There are many free Operating Agreement templates you can use, and if you use an LLC formation service like Incfile or ZenBusiness, one will be provided for you.
Bottom line, you need an Operating Agreement to apply for an LLC in Delaware. You can use a template, or have one provided by an LLC formation service.
At this point, you should have your new LLC formed in the state of Delaware. You can now apply for an Employer Identification Number (EIN) for your business.
This is sometimes known as a Federal Employer Identification Number (FEIN), and it's what your business will use to file taxes with the IRS. You also need this EIN in order to open a bank account for your LLC.
To get your EIN in Delaware, you will need to complete an application with the state. This can be done either online, or by mailing in form SS-4 to the IRS.
You can apply for your EIN online with the IRS. This is a great way to speed up the process and avoid any long waiting times.
File EIN onlineYou can also apply for your EIN by mail with the IRS. This is the traditional way to apply for an EIN in Delaware.
File EIN by mailThere is no requirement for you file an annual report in Delaware, which is one less thing for you to do in this long process to apply for your LLC.
If you need to get in touch with any Delaware state agencies, for help with applying for your LLC, you can use the details below:
Address: Division of Revenue 540 South DuPont Highway Suite 2 Dover, DE 19901
Phone: (302) 744-1085
Website: https://revenue.delaware.gov/
Address: Division of Corporations PO Box 898 Dover, DE 19903
Physical Address: Division of Corporations John G. Townsend Bldg. 401 Federal Street, – Suite 4 Dover, DE 19901
Phone: (302) 739-3073
Website: https://corp.delaware.gov/
Email: [email protected]
If you made it this far down the tutorial and followed all of the previous steps...
Congratulations! You successfully applied for your LLC in Delaware.
At this point, you are now completely ready to start trading through your shiny new company.
Hopefully this article has been able to help you make the application process as smooth and painless as possible.
If you need more help with your LLC (like choosing a Registered Agent), don't forget to check out ZenBusiness or Incfile.
These are the companies we recommend to our clients who need high-quality, easy-to-use business services from a reputable business with a solid track record.
Save hours of your valuable time by using a formation service to form your company.
It's hard to pick just one service that will be suitable for every business formation need.
However, in our experience, ZenBusiness offer the best and most reliable service for the majority of LLC and company formations.
ZenBusiness has a fantastic track record, and offers 100% error free LLC formation.
Try ZenBusiness Now →If you are trying to decide between two states for your company formation, we have prepared side-by-side comparisons of each state to help you see, at a glance, which one might be best for your needs.