How to Create an LLC in Delaware
The time has arrived. You’re finally ready to bring your business idea to life. You’ve created a product or service and are ready to show it off to the masses. Now all you need to do is incorporate. How about Delaware? Delaware is known as one of the most business-friendly locations in the world. Hundreds of corporations, big and small, have incorporated in the state to take advantage of its corporate-friendly environment. State statutes keep Delaware constantly up to date with the rapidly changing business world.
Choose A Name
The first step is choosing a name for your business. Delaware offers the opportunity to reserve a name for your business for up to 120 days. Reserving a name isn’t required, but it can give you an added peace of mind while you work out the other parts of your new business. You should do additional research to make sure your business name complies with trademark laws and state requirements.
Unlike other states, Delaware doesn’t require names or addresses of the LLC owner(s) to appear on the state’s public records. All your business needs are the name and address of its registered agent on the documents. So, unless your business name has your name in it, your privacy will be protected.
Choose A Registered Agent
Delaware law requires every LLC to have a registered agent in the state. This is an individual or a business entity that can accept legal and tax documents on your behalf if you don’t reside in the state. If your business is physically located in Delaware, it can act as its own registered agent. The only restriction is that the registered agent, whether it’s a single person or business entity, must physically reside in the state.
There are also many third-party companies in Delaware that offer standalone registered agent services. That said, as an added bonus, if you decide to utilize Opus Virtual Office’s location in Wilmington, DE, we can serve as your registered agent for no additional charge.
Obtain A Business License
Before you get the wheels spinning, you need to file for a business license. Every business that is organized or operated in Delaware must obtain a state business license. Depending on what Delaware city or county you are operating out of, you may need an extra license.
Delaware requires that businesses that operate out of state complete a certificate of registration instead. This is for businesses that are formed under the laws of another state but wish to do business in Delaware. You will need to provide a certificate of existence from said state as well as pay a fee of $200.
Members of certain professions must obtain a license from the Delaware Division of Professional Regulations. Some of those professions include accounting, pharmaceuticals, landscaping, plumbing, HVAC, and home inspecting, to name a few. The Delaware Division of Professional Regulation website lists the licensing boards that you can contact should your business qualify.
Create an Operating Agreement
Operating agreements lay out the specifics of how you intend to run your LLC. It explains how the business is managed and the members’ contributions. Delaware is one of five states that require an operating agreement. You’ll want to include the products or services offered, procedure for admitting new members, share of the profits and losses, and a dissolution process. It’s important to know that while Delaware doesn’t require you to file the agreement with the state, you’ll want to keep it safe with other business records. An online search for LLC operating agreement in Delaware will provide you with many paid and free options, or you can hire an attorney to draw up a specialized operating agreement based upon your individual circumstances.
The Home Stretch
When all is said and done, apply for an Employer Identification Number. This is for businesses with multiple employees or multiple owners. If you are a single-member LLC, you can get by with just your Social Security number, but it’s strongly recommended that every LLC, even single-member, obtain an EIN for security and privacy reasons. An EIN also provides a more professional presence for you and your company. EIN’s are easy to obtain through the IRS website.
Delaware does not require a business to file an annual report. However, they do require that you pay an annual tax of $300, due every June 1st. While Delaware does have a lot of tax advantages, you are still required to pay payroll and unemployment taxes.
Opus VO is the Way to Go!
Opus Virtual Offices has become the fastest-growing company in the alternative workspace industry with more than 650 locations in all 50 U.S. states and Canada. Their successful business model is built on providing full office services for a single, low monthly rate of $99. Complete features of an Opus Virtual Office include a live receptionist answering and transferring calls, a prestigious corporate mailing address, business phone, fax, and voicemail. All Opus VO operated locations also provide registered agent services for no additional charge. Additionally, various locations can be used to accommodate local meetings, including our prestigious location in Wilmington, Delaware.
