Delaware LLC
How to Create an LLC in Delaware
Starting an LLC in Delaware is a popular choice for entrepreneurs thanks to the state’s business-friendly laws and efficient online filing system. You can form a Delaware LLC entirely through the Delaware Division of Corporations website. The filing fee for a Delaware LLC is $110, and the state requires an annual Franchise Tax to maintain good standing.
Use the guide below to walk through the steps for forming your Delaware Limited Liability Company.
Step-by-Step Guide: How to Form an LLC in Delaware
1. Choose and Check Your LLC Name
Before you register your business, you’ll need to confirm that your desired name is available. You can search the Delaware Division of Corporations database to ensure no other business is using it.
Delaware also allows you to reserve a name for a fee if you’d like to secure it before filing.
2. Designate a Delaware Registered Agent
Every Delaware LLC must have a registered agent with a physical address in the state.
This agent is responsible for receiving legal documents, compliance notices, and official state mail.
You may hire a commercial registered-agent service (common for Delaware businesses), or you can act as your own agent if you have an in-state address.
3. File the Certificate of Formation
To officially create your LLC, file the Certificate of Formation with the Delaware Division of Corporations. Delaware’s filing process is fast and can be submitted online or by mail.
Filing fee: $110
You’ll need to provide:
- Your LLC’s legal name
- Registered agent’s name and Delaware address
- Organizer’s details
Once filed, Delaware usually processes online submissions quickly.
4. Save Your Approved Documents
When your formation is accepted, download and store all confirmation pages and official documents.
You’ll need these records later for banking, tax registration, and licensing.
5. Apply for an EIN (Employer Identification Number)
After your LLC is formed, apply for an EIN with the IRS.
This number functions as your business’s federal tax ID and is required for:
- Opening a business bank account
- Hiring employees
- Filing federal tax returns
The EIN is free and issued instantly via the IRS website.
6. Draft an Operating Agreement (Strongly Recommended)
Although not legally required in Delaware, an LLC Operating Agreement is highly valuable.
This internal document outlines:
- Member duties and contributions
- Ownership percentages
- Voting rules and decision-making processes
- Profit and loss distribution
- How to add or remove members
- Procedures if the business dissolves
Having this agreement protects the LLC structure and helps avoid internal disputes.
7. Pay the Delaware Annual Franchise Tax
Delaware does not require an annual report for LLCs, but all LLCs must pay an annual Franchise Tax.
- Annual Franchise Tax: $300
- Due Date: June 1 of each year
Failure to pay on time can lead to penalties and eventually forfeiture of the LLC.
Additionally, Delaware LLCs must comply with federal requirements such as the Beneficial Ownership Information (BOI) filing under FinCEN.
Summary: Delaware LLC Requirements
| Requirement | Description |
|---|---|
| State Filing Fee | $110 (Certificate of Formation) |
| Annual Franchise Tax | $300 per year |
| Registered Agent | Required — must have a Delaware physical address |
| Processing Time | Usually fast for online filings |
| Governing Agency | Delaware Division of Corporations |
Final Thoughts
Forming an LLC in Delaware is straightforward and efficient, especially for entrepreneurs seeking strong legal protections and a business-friendly environment. By choosing a reliable registered agent, keeping up with Delaware’s Franchise Tax, and maintaining organized business records, you can establish and maintain a Delaware LLC with confidence.
A Delaware LLC offers limited liability protection, flexible management options, and the credibility of forming in one of the most respected business jurisdictions in the country — whether you’re launching a new venture or expanding an existing one.
