Delaware LLC

Why is the Delaware Limited Liability Company the best LLC? It’s a question we get asked a lot. In a state known for its business entities, the Delaware LLC is often overlooked, as its older, more distinguished sibling, the corporation, receives more attention. That’s because Delaware didn’t pass the first Limited Liability Company Act until 1991. Since then, however, the Delaware LLC has proven to be the simpler, more private, and more flexible choice for small business owners while offering the same asset protections and tax advantages as a corporation.

When you hire us, we’ll form your LLC for $45 (plus state fees) and provide the lowest priced registered agent service at just $29 a year. Plus, you’ll get an attorney-drafted operating agreement, initial resolutions, and a FREE trial of Delaware Business Presence. We guarantee you won’t find a better value.

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Form A Delaware LLC

Benefits of a Delaware LLC

Forming a Delaware LLC has a lot of benefits for small business owners. Here are a few reasons why starting an LLC in Delaware is a popular choice:

1. Simple and Secure: The Delaware LLC is the simplest to form among all the LLCs in the world. Why? Because the Delaware Division of Corporations requires only minimal information in the Certificate of Formation, ensuring your identity and personal information remains secure. Plus, when you hire us as your registered agent (just $29 a year), our Delaware business address is the only easily available piece of contact information on your formation document. Our service is designed to provide as much personal privacy protection as permitted by law.
2. Tax Exemptions: As a business-friendly state, Delaware is sometimes referred to as a tax haven. While this is a misnomer, Delaware does offer tax benefits other states don’t. For example, our state doesn’t tax “intangible income” (like patent leases), making Delaware an attractive state to form holding companies (companies that “hold” assets, intangible or otherwise). Our state has also created incentives for the many LLCs formed in Delaware that don’t operate here. For example, according to § 1902, you’ll pay no state income tax if your LLC doesn’t do business in Delaware.
3. Strong Business Laws: Because Delaware has a long history as the nation’s leader in business formation and business law, the state codes and statutes are often studied in law schools around the country. The state even has a court specifically for businesses called the Court of Chancery. So, all disputes are brought before a judge (not a jury) with extensive knowledge of corporate laws, saving time and legal fees.
4. No Business License Required: According to Section 2301(b) and (d) of our state’s code, Delaware LLCs not doing business in Delaware are not required to obtain a business license, register with the Department of Revenue, or pay Delaware’s gross receipts tax.
5. Few Formalities: LLCs are often perfect for small businesses, requiring less paperwork and administrative formalities than corporations. For example, LLCs don’t need to hold annual shareholder or board of director meetings or file annual reports (just a flat $300 annual tax that can be paid online) making LLCs easier to maintain. 
6. No Double Taxation: Corporations in Delaware and elsewhere are by default taxed as C corporations. For many small businesses this tax structure doesn’t make sense, as C corp profits can be taxed twice (once as corporate income, a second time as personal income). Delaware LLCs, by default, aren’t taxed that way. Profits pass directly to members and are taxed only once, as the members’ personal income. However, LLCs can also opt to be taxed as an S corp or a C corp, adding to the LLC’s flexibility as a business entity.

Forming Your Delaware LLC

Our Guide to Forming an LLC in Delaware

1. Complete a Certificate of Formation
2. Submit your certificate to the Delaware Division of Corporations
3. File a BOI Report

1. Complete a Certificate of Formation

In Delaware, Limited Liability Companies (LLCs) are formed by filing a formation document called the Certificate of Formation with the Delaware Division of Corporations.

Here’s a list of everything you must include on your Certificate of Formation:

1. Delaware LLC name
2. Name and street address of your Delaware registered agent
3. Name and signature of the person filing your certificate

2. Submit your Certificate of Formation

You can submit your Certificate of Formation by mail or online. The filing fee is $110. Standard processing will take 1-3 weeks, depending on the current workload. If you need quicker turnaround, you can pay for expedited processing:

• $1000 for one hour
• $500 for two hours
• $200 for same day
• $100 for 24 hours

Mail:
Delaware Division of Corporations
401 Federal Street – Suite 4
Dover, DE 19901

Online:
Completed forms can be uploaded to Delaware eCorp Business Services.

3. File a Beneficial Ownership Information Report with the Financial Crimes Enforcement Network

Starting January 1, 2024, most new LLCs are required to file a Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN). Companies have 30 days after formation to file their BOI report (though companies formed in the year 2024 have 90 days). This federal filing is submitted online and is free to file. For $25, you can even hire us to file your BOI report for you!

The information you share is not made public. You’ll need to provide name, address, and tax or personal identification information for your LLC, anyone with at least 25% ownership interest and/or who has substantial control over your LLC, and whoever files your Certificate of Formation.

Why hire A Registered Agent, Inc to form your Delaware LLC?

Hiring us to form your Delaware LLC means you’re getting more than a local registered agent. You’re getting access to local business experts, a FULL library of business resources, a secure online account, and all the tools to establish an online presence for your LLC. Plus, our prices are always affordable, transparent, and consistent. Guaranteed.

For $184, you get all the following:

• A year of our $29 registered agent service
• Use of our Delaware business address on public documents for maximum privacy protection
• FREE mail forwarding (up to 3 mail scans each year)
• Attorney-drafted LLC operating agreement
• Initial resolutions
• FREE trial of Delaware Business Presence to establish an online business presence
• Optional add-on services at checkout, such as our Trade Name Service. For $125 per county (plus government fees), we’ll register a trade name for your business.
• Additional à la carte services inside your client account, like a corporate book and seal.

FAQ: Starting an LLC in Delaware

• Can I form an LLC in Delaware if I live in a different state or country?
• Can I form a Series LLC in Delaware?
• How much does it cost to start an LLC in Delaware?
• Do Delaware LLCs need an operating agreement?
• Can I use my home address for my Delaware LLC?
• Can you file my BOI report for me?
• Do I need a business license?
• How do I pay franchise tax?
• Do I have to file an annual report?
• Do I need to have a website for my business?
• Why do you charge less?

Can I form an LLC in Delaware if I live in a different state or country?

Yes, absolutely. You can start a Delaware LLC without living in the state or U.S. The only physical requirement is that your LLC have and maintain a local registered agent. Thankfully, with our Delaware LLC formation service, we provide a year of professional registered agent service at a low, affordable price—just $29 a year! We also offer additional mail forwarding and virtual office packages for those with more significant business address needs, starting at just $49 a year.

Can I form a Series LLC in Delaware?

Yes. A Series LLC is a business structure that allows you to establish multiple LLCs under a parent (or umbrella) LLC. To learn more about forming a Delaware Series LLC and how hiring us can make the process easier, check out our Delaware Series LLC page.

How much does it cost to start a Delaware LLC?

The filing fee for the Certificate of Formation is $110. If you hire us to form your LLC, your business will be active in 1-3 business days, depending on state filing times. However, if you need expedited processing, you can pay an additional $1000 (one hour), $500 (two hours), $200 (same day), or $100 (24 hours).

Do Delaware LLCs need an operating agreement?

No, Delaware LLCs are not required to have an operating agreement. However, in Delaware operating agreements aren’t required to be in writing. Operating agreements in Delaware can be written, oral, or implied. That means that you’ve likely formed an operating agreement between members without even knowing it. That said, LLC operating agreements are the internal rules of an LLC. Clear, well-thought-out agreements will help settle member disputes, explain how profits and losses are distributed, and set forth rules about membership and dissolution. If you hire A Registered Agent, Inc. to form your Delaware LLC, an operating agreement for your company will be included.

Can I use my home address for my Delaware LLC?

Delaware doesn’t require business owners to list their personal names or addresses on formation documents. You are, however, required to list your local registered agent’s name and physical address. If you choose to act as your own registered agent, you will be required to list your personal information. Delaware also requires your registered agent to be available (and present at their physical address) during regular business hours–a requirement that’s often too stringent for most business owners.

When you sign for our $29 registered agent service, we not only handle the paperwork for you but also use our Delaware address on the formation documents, providing you with the ultimate privacy protection.

Can you file my BOI report for me?

Absolutely! We know it can seem like a hassle to form a business while keeping track of so many filings. But that’s why we’re here. When you hire us to form your Delaware LLC, you can easily add our BOI filing service for an additional $25. Plus, we’ll ensure you have all the tools to succeed and remain in good standing.

Do I need a business license?

Maybe. If you plan on conducting business in Delaware, you will likely need a business license. For more information, see our Delaware Business License page.

How do I pay the annual franchise tax for my Delaware LLC?

All Delaware LLCs (foreign and domestic) must pay a $300 annual franchise tax. Payment is due on or before June 1 each y ear. You can pay the franchise tax through the Delaware Division of Corporations website.

Do I have to file an annual report for my Delaware LLC?

Nope. Delaware LLCs are not required to file an annual report. You’ll only be required to pay the $300 annual franchise tax.

Do I need to have a website for my business?

Probably. No one will force you to get one, but the benefits of taking your business online far outweigh any downsides. (Especially when you get everything you need all from one place!) Learn more on our Delaware Business Presence page.

Why do you charge less?

We keep our prices affordable, fair, and honest with no up-charges or hidden fees. It’s how it should be.