Steps to Form an LLC in Delaware
Step 1: Choose Your LLC Name
Your Delaware LLC name must be distinguishable from other business entities registered in the state. The name must include "LLC," "L.L.C.," or "Limited Liability Company." Search the Division of Corporations's database to check name availability before filing.
Step 2: Appoint a Registered Agent
Every Delaware LLC must have a registered agent — a person or company with a physical address in Delaware who can receive legal documents on behalf of your LLC. You can serve as your own registered agent or hire a professional service ($50-300/year).
Step 3: File Articles of Organization
File your Articles of Organization with the Division of Corporations. The filing fee is $90 and typical processing takes Same day (24hr expedited). You can file online at corp.delaware.gov.
Step 4: Create an Operating Agreement
While not always legally required, an operating agreement is essential. It outlines ownership percentages, profit distribution, management structure, and what happens if a member leaves. Banks often require one to open a business account.
Step 5: Get an EIN (Employer Identification Number)
Apply for a free EIN from the IRS at irs.gov. You'll need this to open a business bank account, hire employees, and file taxes. The process takes about 5 minutes online.
Step 6: Open a Business Bank Account
Separate your personal and business finances by opening a dedicated business checking account. This protects your personal liability shield and makes accounting easier.
Key Facts About Delaware LLCs
- #1 most popular state for LLCs
- Business-friendly Court of Chancery
- Strong privacy protections
Ongoing Requirements
Delaware requires a annual tax with a fee of $300. Make sure to file on time to keep your LLC in good standing.
Need Help Estimating Business Costs?
Use our Business Startup Cost Calculator to estimate your total launch budget, or check the average salary in Delaware to understand your local market.