{"id":20844,"date":"2021-04-27T00:09:58","date_gmt":"2021-04-27T00:09:58","guid":{"rendered":"https:\/\/boostsuite.com\/?page_id=20844"},"modified":"2024-08-27T05:43:31","modified_gmt":"2024-08-27T09:43:31","slug":"delaware","status":"publish","type":"page","link":"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/","title":{"rendered":"How to Start a Delaware LLC"},"content":{"rendered":"\n<p>If you\u2019re reading this, it\u2019s a pretty safe assumption that you\u2019ve decided to form a Delaware LLC.&nbsp;<\/p>\n\n\n\n<p>Congratulations! Any time you start a new business or open a business in a new state, it\u2019s a rush.&nbsp;<\/p>\n\n\n\n<p>In this article, I\u2019ll go over the steps necessary to form an LLC in Delaware, but before I get into that I\u2019m going to cover a few of the basics about what a Limited Liability Company (LLC) is and the advantages of choosing an LLC over other business models.&nbsp;<\/p>\n\n\n\n<p>(To skip to the &#8220;How to Form an LLC&#8221; section, <a class=\"rank-math-link\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#How_To_Start_An_LLC_In_Delaware\">click here<\/a>.)<\/p>\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #212121;color:#212121\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #212121;color:#212121\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#What_Is_a_Delaware_LLC\" title=\"What Is a Delaware LLC?\">What Is a Delaware LLC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#Why_Choose_an_LLC\" title=\"Why Choose an LLC?\">Why Choose an LLC?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#1_Limited_Liability_and_Asset_Protection\" title=\"1. Limited Liability and Asset Protection\">1. Limited Liability and Asset Protection<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#2_Privacy\" title=\"2. Privacy\">2. Privacy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#3_Taxation\" title=\"3. Taxation\">3. Taxation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#How_to_Start_an_LLC_in_Delaware\" title=\"How to Start an LLC in Delaware\">How to Start an LLC in Delaware<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#1_Obtain_Certificate_of_Formation_Form\" title=\"1. Obtain Certificate of Formation Form\">1. Obtain Certificate of Formation Form<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#2_Choose_Your_Business_Name\" title=\"2. Choose Your Business Name\">2. Choose Your Business Name<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#3_Choose_a_Delaware_Registered_Agent\" title=\"3. Choose a Delaware Registered Agent\">3. Choose a Delaware Registered Agent<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#4_Choose_Your_LLC_Address\" title=\"4. Choose Your LLC Address\">4. Choose Your LLC Address<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#5_Sign_and_File_Your_Certificate_of_Formation_Form\" title=\"5. Sign and File Your Certificate of Formation Form\">5. Sign and File Your Certificate of Formation Form<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#Other_LLC_Activities\" title=\"Other LLC Activities\">Other LLC Activities<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#Delaware_LLC_Fee_Summary\" title=\"Delaware LLC Fee Summary\">Delaware LLC Fee Summary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#After_Starting_Your_Delaware_LLC\" title=\"After Starting Your Delaware LLC&nbsp;\">After Starting Your Delaware LLC&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#Step_1_Create_an_Operating_Agreement\" title=\"Step 1. Create an Operating Agreement\">Step 1. Create an Operating Agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#Step_2_Apply_For_an_Employer_Identification_Number\" title=\"Step 2. Apply For an Employer Identification Number\">Step 2. Apply For an Employer Identification Number<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#Step_3_Open_a_Business_Bank_Account\" title=\"Step 3. Open a Business Bank Account\">Step 3. Open a Business Bank Account<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/#In_Summary\" title=\"In Summary\">In Summary<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_a_Delaware_LLC\"><\/span>What Is a Delaware LLC?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Delaware LLC is a Limited Liability Company formed in the state of Delaware that is governed by the laws, regulations, and statutes of the state of Delaware.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Choose_an_LLC\"><\/span>Why Choose an LLC?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are three major advantages to forming an LLC instead of a sole trader, S or C corporation, or a partnership.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Limited_Liability_and_Asset_Protection\"><\/span>1. Limited Liability and Asset Protection<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The first advantage is quite possibly the most important. Owners of Delaware LLCs can\u2019t be held personally responsible for the legal or financial problems or debts of the LLC.&nbsp;<\/p>\n\n\n\n<p>If your company is sued or goes bankrupt, creditors of your Delaware LLC can\u2019t come after your personal assets like your house, car, or personal bank account. Their only financial recourse is to go after the finances and assets of the Delaware LLC.&nbsp;<\/p>\n\n\n\n<p>All it takes is one unexpected event to topple even the most successful and prepared businesses, so any amount of protection is comforting. The protection of your personal assets is vital for anyone who values the hard work and effort they\u2019ve put into their business.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Privacy\"><\/span>2. Privacy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another advantage of forming an LLC in Delaware is that as the owner of a Limited Liability Company (LLC), you can ensure that your personal information is kept safe and off the public record.&nbsp;<\/p>\n\n\n\n<p>Unfortunately, over the past decade or so hackers and scam artists have become more adept at what they do. Now they can steal your identity and rack up thousands of dollars in debt in your name using small bits of your personal information that may seem inconsequential to you.&nbsp;<\/p>\n\n\n\n<p>When you operate under business models such as partnerships or sole trader, you\u2019ve got no choice but to register your personal information with the Delaware Secretary of State so that they can put it on their website. When you register your personal information with the Secretary of State and it\u2019s posted on their website, it\u2019s on public record and anyone can find it with a simple online search. This leaves your personal information vulnerable to hackers and scammers.&nbsp;<\/p>\n\n\n\n<p>If you form a Delaware LLC instead, you can protect your personal information.&nbsp;<\/p>\n\n\n\n<p>Keeping your information safe is fairly simple and all you have to do is use an LLC formation service. The LLC formation service will register their name and address with the Secretary of State, rather than yours, and you still retain ownership of your Delaware LLC. This ensures that your information is safe and kept away from people who would use it with nefarious intent.&nbsp;<\/p>\n\n\n\n<p>The two best LLC formation services in the state are <a href=\"https:\/\/boostsuite.com\/reviews\/northwest-registered-agent\/\" class=\"rank-math-link\">Northwest Registered Agent<\/a> and <a href=\"https:\/\/boostsuite.com\/reviews\/zenbusiness\/\" class=\"rank-math-link\">ZenBusiness<\/a>. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Taxation\"><\/span>3. Taxation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The last advantage of forming an LLC is that Delaware LLCs enjoy considerable tax benefits that other business structures in the state don\u2019t.&nbsp;<\/p>\n\n\n\n<p>If you start a corporation instead of an LLC in Delaware, you\u2019ll notice that you experience a phenomenon known as \u201cdouble taxation.\u201d&nbsp;<\/p>\n\n\n\n<p>Why is it called \u201cdouble taxation&#8221;? All of the profits earned by the corporation are taxed at corporate rates. Then when the already-taxed profits of the corporation are divided up among corporation owners and shareholders, each of them has to pay personal income tax on these dividends as well.&nbsp;<\/p>\n\n\n\n<p>This means that each of the corporation owners or shareholders is taxed twice.&nbsp;<\/p>\n\n\n\n<p>Owners of Delaware LLCs entirely avoid double taxation. All of the profits earned by your Limited Liability Company (LLC) are taxed at company rates, rather than corporate rates. Then the profits that are divided among LLC owners are considered personal income and charged a personal income tax. So by forming a Delaware LLC you can ensure that your profits are only taxed once.&nbsp;<\/p>\n\n\n\n<p>The tax benefits for Delaware LLCs don\u2019t stop there. The 2017 Tax Cuts and Jobs Act provides further tax benefits for LLCs called the Qualified Business Income Deduction (QBID). This affords LLCs a discount of up to 20% off their taxes\u2014a benefit only allowed to LLCs and not any other business structure.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Start_an_LLC_in_Delaware\"><\/span>How to Start an LLC in Delaware<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now that you know what a Delaware LLC is and what the advantages of LLCs are, you can more confidently make the decision to form an LLC. If you\u2019re sure that an LLC in Delaware is the right business structure for your company, read on for the steps to form your Delaware LLC.&nbsp;<\/p>\n\n\n\n<p><strong>*<\/strong>Important* If you\u2019re nervous about the LLC formation process and feel like you could use some help to navigate all of the red tape associated with starting a Delaware LLC (which is a completely understandable feeling), as well as help filing all of the formation documents and keeping your information off the public record, there are companies that do all of this for you.&nbsp;<\/p>\n\n\n\n<p>They are called LLC formation services. They help you start your LLC in Delaware and get it established, and they do it for as low as $0 plus state filing fees. (However, my most highly rated and recommended LLC formation service is ZenBusiness. They charge $49 plus the filing fee.)&nbsp;<\/p>\n\n\n\n<p>If you\u2019d like a bit of guidance to get you through the business formation process, check out my guide about the <a href=\"https:\/\/boostsuite.com\/llc\/\" class=\"rank-math-link\">best LLC services<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Obtain_Certificate_of_Formation_Form\"><\/span>1. Obtain Certificate of Formation Form<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Certificate of Formation is the only form that the Delaware Division of Corporations requires of an LLC in Delaware. Obtaining this form is the first step in your LLC formation journey.&nbsp;<\/p>\n\n\n\n<p>You can download and print out the Certificate of Formation <a href=\"https:\/\/corpfiles.delaware.gov\/LLCFormation.pdf\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n\n\n\n<p>This is a PDF form that you can obtain online through the Delaware Division of Corporations website.&nbsp;<\/p>\n\n\n\n<p>Since this is the primary form that Delaware LLCs need to file in order to form an LLC in the state, the remaining four steps will relate back to this form.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Choose_Your_Business_Name\"><\/span>2. Choose Your Business Name<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The next step on your journey to create your LLC is to create a name for your business entity.&nbsp;<\/p>\n\n\n\n<p>This may sound easy but you can\u2019t just choose the first business name that pops into your head, and you may not even be able to use the one you really want. You\u2019ll need to make sure that no other Delaware business has the same name.&nbsp;<\/p>\n\n\n\n<p>Every Delaware business is required to have a unique legal name, according to the Secretary of State and the Delaware Division of Corporations, so you can\u2019t use the same name that someone else uses for their business.&nbsp;<\/p>\n\n\n\n<p>How do you find out if another business entity has already used the name you want? That\u2019s fairly easy. Just go online and search the Secretary of State\u2019s business name database, which you can access <a href=\"https:\/\/icis.corp.delaware.gov\/Ecorp\/EntitySearch\/NameSearch.aspx\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n\n\n\n<p>If there are LLCs with the name you had originally chosen for your business, don\u2019t worry too much about it. There are ways around that. You can tack words like \u201cLimited Liability Company,\u201d \u201cL.L.C.,\u201d \u201cLLC,\u201d \u201cSyndicate,\u201d \u201cTrust,\u201d \u201cFund,\u201d etc. to the end of your business name. This is much like adding letters to the end of an online screen name because someone had already taken the one you\u2019d originally wanted.&nbsp;<\/p>\n\n\n\n<p>If you don\u2019t like your business\u2019s registered LLC name, there are ways around that as well. You can file to get a trade name or DBA (Doing Business As), which is the name that your business presents to the world in its signs, advertisements, promotions, and more. You can register for a trade name <a href=\"https:\/\/courts.delaware.gov\/forms\/download.aspx?id=6068\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Choose_a_Delaware_Registered_Agent\"><\/span>3. Choose a Delaware Registered Agent<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According to Delaware law, every LLC formed in Delaware or operating in Delaware must have a registered agent.&nbsp;<\/p>\n\n\n\n<p>A registered agent is a legal term that refers to someone who is appointed to be a statutory agent. This person or service makes themselves available during business hours to receive official mail, documents, and legal notices for your business from state offices like the Division of Corporations or the Court of Chancery.&nbsp;<\/p>\n\n\n\n<p>You have two options when it comes to choosing a registered agent: you can either elect to take on the registered agent role yourself or you can choose to use a Delaware registered agent service. It\u2019s quite an important choice to make and I\u2019ll tell you everything you need to know before you make the decision.&nbsp;<\/p>\n\n\n\n<p>Of course, there are some downsides to becoming the registered agent for your business. You\u2019ll need to register an address to be listed on the public record and since you aren\u2019t a registered agent service and you\u2019re assuming the role of registered agent, you\u2019ll have to list your personal address. This leaves you vulnerable to attacks from hackers and scam artists.&nbsp;<\/p>\n\n\n\n<p>There\u2019s another factor that many people don\u2019t consider when they choose to become a registered agent themselves: you\u2019ll have to be available during business hours to accept mail, documents, and legal notices for your business entity, while also running said business entity. It\u2019s pretty likely that your business operates during the same business hours that the state offices do, and you can\u2019t really be in two places at once. This puts you at risk of missing important notices, meaning you could be sued without the chance to defend yourself.&nbsp;<\/p>\n\n\n\n<p>The only real upside to being a registered agent is that you don\u2019t have to pay any fees.&nbsp;<\/p>\n\n\n\n<p>Choosing a registered agent service means that your personal information will remain off the public record and is kept safe from hackers. The drawback is that these services typically cost between $99\u2013$299 per year.&nbsp;<\/p>\n\n\n\n<p>But when you stop to consider the fact that if you miss an important legal notice or document it could cost you your entire business and everything you work for, $99\u2013$299 per year isn\u2019t that bad. I advise all new LLCs to use a registered agent service.&nbsp;<\/p>\n\n\n\n<p>If you\u2019d like to keep your personal information, assets, and business safe check out my guide to the <a class=\"rank-math-link\" href=\"https:\/\/boostsuite.com\/best-registered-agent\/delaware\/\">best Delaware registered agent<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Choose_Your_LLC_Address\"><\/span>4. Choose Your LLC Address<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Your registered agent\u2019s name isn\u2019t the only bit of information you have to provide on your Certificate of Formation form according to Delaware law. Business entities in Delaware are required to register an address for their business in Delaware that will be listed on the public record.&nbsp;<\/p>\n\n\n\n<p>If you aren\u2019t using a registered agent service and your business has a physical street address, you can either use that or your business\u2019s mailing address. Barring that, you\u2019ll have to list your home address on the public record.&nbsp;<\/p>\n\n\n\n<p>If you do choose to use a registered agent service, one of the services they provide your business entity with is registering their name and address on the public record instead of listing your personal details.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Sign_and_File_Your_Certificate_of_Formation_Form\"><\/span>5. Sign and File Your Certificate of Formation Form<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once you\u2019ve filled in the necessary information and you\u2019re confident that it\u2019s all been entered correctly, you can file a Certificate of Formation form.&nbsp;<\/p>\n\n\n\n<p>If you\u2019re filling this out yourself instead of using an LLC formation service, you sign it yourself. If you use an LLC formation service, they sign it on your behalf and your information is kept safe.&nbsp;<\/p>\n\n\n\n<p>You can either submit the form online using the <a href=\"https:\/\/corp.delaware.gov\/document-upload-service-information\/\" target=\"_blank\" rel=\"noopener\">Document Upload Service<\/a> provided by the Division of Corporations, or you can mail it in along with the filing fee. You can submit it by mail to:&nbsp;<\/p>\n\n\n\n<p><em>Division of Corporations<br>PO Box 898<br>Dover, DE 19903<\/em><\/p>\n\n\n\n<p>Once the Division of Corporations has processed your Certificate of Formation, they\u2019ll contact you via mail or email. This typically takes 1\u20133 weeks. Some LLC formation services offer expedited processing services if you\u2019re inclined to get through the process quicker.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_LLC_Activities\"><\/span>Other LLC Activities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once you\u2019ve formed your LLC there are a few activities you must complete to remain in good standing with the Secretary of State and comply with Delaware law. These activities aren\u2019t part of the formation process, but they are still necessary to remain on the Division of Corporation\u2019s good side and stay away from the Court of Chancery.&nbsp;<\/p>\n\n\n\n<p>You\u2019ll need to obtain and maintain a business license. Business entities doing business in Delaware must get a business license and they have to be renewed yearly. Many states require that LLCs file annual reports, but Delaware doesn\u2019t. Even though you won\u2019t have to worry about annual report filing, LLCs are required to pay an annual franchise tax of $300.&nbsp;<\/p>\n\n\n\n<p>If you\u2019d like help with these filing duties, paying the yearly franchise tax, and other crucial duties, consider a Delaware <a href=\"https:\/\/boostsuite.com\/peo\/\">PEO company<\/a> as well as some <a href=\"https:\/\/boostsuite.com\/best-online-legal-services\/\" data-type=\"page\" data-id=\"22183\">online legal services<\/a>.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Delaware_LLC_Fee_Summary\"><\/span>Delaware LLC Fee Summary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>No matter whether you choose to go through the process of forming your LLC on your own or hire an LLC formation service, there will be <a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/cost\/\">costs when forming your LLC<\/a>. Here\u2019s a quick guide to filing and other fees you can expect when you form an LLC in Delaware:<\/p>\n\n\n\n<p><strong>Certificate of Formation fee<\/strong>: $90<br><strong>Name reservation fee:<\/strong> $75<br><strong>Registered agent fee:<\/strong> $99\u2013$299 per year<br><strong>State personal income tax:<\/strong> 2.2%\u20136.60%<br><strong>State corporate income tax:<\/strong> 8.7%<br><strong>Franchise tax:<\/strong> $300 per year<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"After_Starting_Your_Delaware_LLC\"><\/span>After Starting Your Delaware LLC&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You\u2019ve already completed one monumental step when you formed your LLC and congratulations are in order. So do something to relax and celebrate like drink a beer or a glass of wine, go out on the town, have a fancy dinner or enjoy a small vacation. But don\u2019t stay away too long because there are a few more things you need to do before your LLC will have the foundations it needs to function properly as a business.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_1_Create_an_Operating_Agreement\"><\/span>Step 1. Create an Operating Agreement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An Operating Agreement is basically a contract between LLC members that provides a detailed explanation of how the business will run. The Operating Agreement should identify each member and outline the structural, operational, managerial, and financial aspects of your business.&nbsp;<\/p>\n\n\n\n<p>A good LLC Operating Agreement should clearly describe the ownership percentages of LLC members as well as which members should make high-level decisions.&nbsp;LLC Operating Agreements should outline the roles of each member and the relationships between members. It\u2019s also important that your Operating Agreement clearly defines the ownership percentages of each member, as well as the shares of profits and losses of each member.&nbsp;<\/p>\n\n\n\n<p>Additionally, Operating Agreements should describe what happens when a member leaves or a new member joins the business. If you use this model, your Operating Agreement won\u2019t just provide information about how to run your business but also about what to do if there is a disagreement between LLC members.&nbsp;<\/p>\n\n\n\n<p>I hope it's obvious by now that the Operating Agreement is absolutely CRUCIAL to the successful operation of your business. Each of the items detailed in your Operating Agreement defines how your business is run. LLCs have to operate under the instructions laid out in the Operating Agreement. If you get it wrong your business could be stifled and there won\u2019t be any room for innovation or adaptation. Furthermore, your LLC members may not be properly compensated due to the faulty decision-making and poor structures outlined in your agreement. If you get it right, your business will grow and flourish without the constraints of a faulty agreement.&nbsp;<\/p>\n\n\n\n<p>If you\u2019re concerned about getting the Operating Agreement right in order to maintain business success and define the roles and compensation of your LLC members (which is a legitimate concern), there are lots of LLC formation services in Delaware that will draft and file your Operating Agreement on your behalf.&nbsp;<\/p>\n\n\n\n<p>Northwest Registered Agent also provide a free Operating Agreement template on their website. You can get it here: <a class=\"rank-math-link\" href=\"https:\/\/boostsuite.com\/go\/nwra\/oa\">Free Operating Agreement Template<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_2_Apply_For_an_Employer_Identification_Number\"><\/span>Step 2. Apply For an Employer Identification Number<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You\u2019ll need to apply for an Employer Identification Number (EIN) if you plan to hire employees or open a business bank account. An EIN also allows you to apply for certain permits and licenses as well as handle employee payroll. Of course, you don\u2019t have to hire employees in order to obtain an Employer Identification Number\u2014it\u2019s just a business identification number for LLCs.&nbsp;<\/p>\n\n\n\n<p>An EIN identifies LLCs much like a social security number identifies individual people. It\u2019s fairly simple to apply for an Employer Identification Number and you can do so through the Internal Revenue Service (IRS).&nbsp;<\/p>\n\n\n\n<p>Many LLC formation services in the state will apply for an EIN on your behalf, which alleviates a lot of the guesswork when it comes to filing for an EIN.&nbsp;<\/p>\n\n\n\n<p>You can also file for an Employer Identification Number yourself. You just have to go to the <a href=\"https:\/\/irs.usa-taxid.com\/?gclid=Cj0KCQjw9_mDBhCGARIsAN3PaFP3fX-r6RhvERijyaHaM8Goqr6owe9mqtaDAyFkWtpSQdUmxWZWgUUaAq8-EALw_wcB\" target=\"_blank\" rel=\"noopener\">IRS website<\/a> and submit your application between 7 a.m. and 10 p.m. Monday\u2013Friday.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_3_Open_a_Business_Bank_Account\"><\/span>Step 3. Open a Business Bank Account<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There\u2019s one more step you need to complete before you dive headfirst into the adventure of running a business in Delaware, and that\u2019s to open a bank account specifically for your company.&nbsp;<\/p>\n\n\n\n<p>A lot of people overlook this step when they form a Delaware LLC, but it\u2019s important.&nbsp;<\/p>\n\n\n\n<p>Many people conduct both business and personal transactions through their personal bank accounts and then try to decipher which transactions were business transactions later when tax season rolls around. It may seem like it\u2019s easier to use your personal account for business transactions, but there are two important reasons you shouldn\u2019t even consider it.&nbsp;<\/p>\n\n\n\n<p>First of all, you\u2019ll be able to easily determine that every transaction is a business transaction if it\u2019s made on the business account. You may think it will be easy to tell the difference between personal and business transactions, but at the end of the year (which is often several months after the transaction was made) it\u2019s pretty unlikely that you\u2019ll be able to remember which were which for tax purposes. This makes filing taxes a lot more complicated than it actually needs to be.&nbsp;<\/p>\n\n\n\n<p>Second, conducting business transactions through your personal account leaves you vulnerable to personal lawsuits, regardless of the protection that you typically enjoy when you form an LLC.&nbsp;<\/p>\n\n\n\n<p>If you value the safety of your personal information and don\u2019t like the thought of unnecessary headaches when it comes to filing your taxes, just open a business bank account when you form your LLC.&nbsp;<\/p>\n\n\n\n<p>You\u2019ll typically need a bank kit in order to open a business bank account for your LLC. This includes certified copies of things like your Certificate of Formation, your EIN, and your Articles of Organization.<\/p>\n\n\n\n<p>Most LLC formation services include bank kit creation as part of their formation services, which can save you some of the hassles of rounding up the paperwork yourself.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_Summary\"><\/span>In Summary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The decision to form a Delaware LLC is an important one and a big step to complete on your business journey. Congratulations on making the decision to take control of your business destiny!&nbsp;<\/p>\n\n\n\n<p>If you choose to forego <a href=\"https:\/\/boostsuite.com\/llc\/\">LLC formation services<\/a> (which start as low as $0 plus state fees), follow these five steps:&nbsp;<\/p>\n\n\n\n<ol>\n<li>Obtain the Certificate of Formation form<\/li>\n\n\n\n<li>Name your LLC<\/li>\n\n\n\n<li><a class=\"rank-math-link\" href=\"https:\/\/boostsuite.com\/best-registered-agent\/delaware\/\">Choose your registered agent<\/a><\/li>\n\n\n\n<li>Choose your LLC address<\/li>\n\n\n\n<li>Sign and file your Articles of Organization<\/li>\n<\/ol>\n\n\n\n<p>It can be complicated to wade through the red tape and jargon associated with forming an LLC. However, forming an LLC on your own without an LLC formation service to hold your hand and guide you through the process can leave you with an invigorating, rewarding feeling.&nbsp;<\/p>\n\n\n\n<p>Congratulations again on your decision to form an LLC in Delaware, and I wish you the best of luck on your business journey!&nbsp;<\/p>\n\n\n\n<style>\r\n    \/* Style pour le conteneur *\/\r\n    .conteneur {\r\n        border: 2px solid #307FB3;\r\n        \/* Couleur de bordure sp\u00e9cifi\u00e9e *\/\r\n        padding: 10px;\r\n        width: auto;\r\n        \/* Largeur automatique pour s'adapter au contenu *\/\r\n        max-width: 400px;\r\n        \/* Largeur maximale si le contenu est tr\u00e8s long *\/\r\n        margin: 0 auto;\r\n        \/* Centre le conteneur horizontalement *\/\r\n    }\r\n\r\n    \/* Style pour le titre *\/\r\n    .titre {\r\n        font-size: 1.2em;\r\n        font-weight: bold;\r\n        margin-bottom: 10px;\r\n    }\r\n\r\n    \/* Style pour la liste sans bullet point *\/\r\n    .liste-sans-puces {\r\n        list-style-type: none;\r\n        padding: 0;\r\n        margin: 0;\r\n    }\r\n\r\n    \/* Style pour les liens dans la liste *\/\r\n    .liste-sans-puces a {\r\n        text-decoration: none;\r\n        color: black;\r\n        \/* Couleur du texte des liens *\/\r\n        display: block;\r\n        \/* Pour occuper toute la largeur du conteneur *\/\r\n        padding: 5px;\r\n        \/* Espacement entre les liens *\/\r\n    }\r\n\r\n    \/* Style pour les liens au survol *\/\r\n    .liste-sans-puces a:hover {\r\n        background-color: #f0f0f0;\r\n        \/* Couleur de fond au survol *\/\r\n    }\r\n<\/style><!-- Conteneur avec bordure bleue -->\r\n<div class=\"conteneur\">\r\n    <!-- Titre -->\r\n    <div class=\"titre\">Business Management and Compliance Services in the State of Delaware<\/div><!-- Liste sans bullet point -->\r\n    \t<ul class=\"liste-sans-puces\">\r\n       \t\t<li><a href=\"https:\/\/boostsuite.com\/peo\/delaware\/\">Best PEO in Delaware<\/a><\/li>\r\n        \t<li><a href=\"https:\/\/boostsuite.com\/best-registered-agent\/delaware\/\">Best Registered Agent in Delaware<\/a><\/li>\r\n\t\t\t<li><a href=\"https:\/\/boostsuite.com\/llc\/delaware\/\">Best LLC Services in Delaware<\/a><\/li>\r\n\t\t\t<li><a href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/\">How to start an LLC in Delaware<\/a><\/li>\r\n\t\t\t<li><a href=\"https:\/\/boostsuite.com\/how-long-does-it-take-to-get-an-llc\/delaware\/\">How long does it take to get an LLC in Delaware<\/a><\/li>\r\n   \t\t<\/ul>\r\n<\/div><br>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re reading this, it\u2019s a pretty safe assumption that you\u2019ve decided to form a Delaware LLC.&nbsp; Congratulations! Any time you start a new business &#8230; <a title=\"How to Start a Delaware LLC\" class=\"read-more\" href=\"https:\/\/boostsuite.com\/how-to-start-an-llc\/delaware\/\" aria-label=\"Read more about How to Start a Delaware LLC\">Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"parent":20481,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":""},"post_excerpt_stackable_v2":"<p>If you\u2019re reading this, it\u2019s a pretty safe assumption that you\u2019ve decided to form a Delaware LLC.&nbsp; Congratulations! Any time you start a new business or open a business in a new state, it\u2019s a rush.&nbsp; In this article, I\u2019ll go over the steps necessary to form an LLC in Delaware, but before I get into that I\u2019m going to cover a few of the basics about what a Limited Liability Company (LLC) is and the advantages of choosing an LLC over other business models.&nbsp; (To skip to the &#8220;How to Form an LLC&#8221; section, click here.) Table of Contents&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Aaron Kra","url":"https:\/\/boostsuite.com\/author\/aaron\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/pages\/20844"}],"collection":[{"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/comments?post=20844"}],"version-history":[{"count":9,"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/pages\/20844\/revisions"}],"predecessor-version":[{"id":29534,"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/pages\/20844\/revisions\/29534"}],"up":[{"embeddable":true,"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/pages\/20481"}],"wp:attachment":[{"href":"https:\/\/boostsuite.com\/wp-json\/wp\/v2\/media?parent=20844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}