How to Start an LLC in Delaware
A Limited Liability Company (LLC) is a permanent public record. Starting one requires sharing personal information with the government, banks, landlords, vendors, and of course, customers. We provide a Free Business Identity to anyone who needs it—that’s a domain name, website, phone line, email address, and Brand Protection on day one. This helps protect your privacy and keep you in control of your intellectual property.
1. Name Your LLC
Coming up with a unique name for your LLC is both a legal requirement and a marketing one. If you already have a name in mind, you can run it through the Delaware business name search to see if it’s available.
Your LLC’s name:
- Needs to include either Limited Liability Company, L.L.C., or LLC
- Cannot currently be in use by another business in Delaware
It’s also a good idea to search the USPTO database to make sure your name isn’t registered as a trademark.
Finally, do a quick internet search to see if there’s an available domain name that matches (or complements) your desired business name.
You can get a DBA in Delaware by submitting a Registration of Trade, Business, and Fictitious Name Certificate with the county in which you do business. There’s a $25 filing fee (per county).
2. Register Your Domain Name
Next, register a domain name that matches (or complements) your LLC name. A domain is an address for a website, like northwestregisteredagent.com, and it’s an important part of your Business Identity.
Even if you’re not ready to make a business website, reserving your domain NOW ensures that it will still be available when you are ready to make your site. Otherwise, you could end up having to settle for a domain that doesn’t actually match your business name.
As a domain provider, Northwest can register your domain at the same time we form your LLC. Use our domain search tool to find the right domain for your business.
3. Appoint a Delaware Registered Agent
All LLCs are required to appoint a registered agent. A registered agent is an individual (like yourself) or a company (like us) designated to receive legal and state mail on behalf of your business.
DE registered agent requirements
A Delaware registered agent must fulfill certain duties in accordance with Del. Code tit. 8 § 132. At a minimum, your registered agent is required to:
- Have a physical address in the state of Delaware (not a P.O. Box)
- Maintain regular business hours
- Accept legal mail and communications from the Delaware Division of Corporations on behalf of your business and forward them to you promptly
You can be your own registered agent in Delaware if you don’t mind having your name and address on the public record. You’ll need to be on hand at this address during regular business hours to accept any legal mail that arrives.
Registered agent names and addresses are public information. So if you appoint yourself as registered agent, your address will be visible on the Delaware Corporate Name Search, where it can end up in the hands of data brokers and scam artists. This is why using a registered agent service is often the smarter choice.
| Privacy | Keep your private
address private |
| Peace of mind | Get notified IMMEDIATELY
of legal mail. |
| Image protection | Don’t get served
at home. |
When Northwest is your registered agent, you never have to worry about us being late to the game. We scan and upload all legal mail to our clients’ accounts the same day we receive it.
Your registered agent is a key part of your Business Identity. As your registered agent, we’ll provide a free business address you can use to protect your privacy and project a professional image.
4. File Delaware Certificate of Formation
You’ll need to fill out a form called Certificate of Formation of a Limited Liability Company to officially form your LLC in Delaware according to Delaware’s LLC formation statute.
Everything on the form will be public record. This includes your:
- Company name: Write your name exactly as you want it to appear in the state’s records.
- Registered agent: This is the person or business that will accept legal and state mail on behalf of your LLC.
- Registered office: This must be a physical address in Delaware where your registered agent is present during office hours.
- Authorized person: The person who is submitting your Certificate of Formation will need to add their printed name and signature. If you hire us, then we will sign.
You can submit the Certificate of Formation two ways:
| Online | eCorp Business Services |
| Division of Corporations
John G. Townsend Building 401 Federal Street Suite 4 Dover, DE 19901 |
When submitting your certificate by mail, you’ll need to include a cover sheet.
The costs to form a Delaware LLC include a $110 fee to file your Certificate of Formation with the Delaware Division of Corporations. The business license fee varies by industry but typically costs $75. LLCs also need to pay an annual franchise tax of $300.
Generally speaking, it takes between 2-3 weeks to form your Delaware LLC if you file online. This is pushed up slightly to 3-4 weeks if you file via paper form.
If all LLC owners (called members) take part in running the day-to-day operations, it’s a member-managed LLC.
If the LLC members don’t want to run the business themselves, they can hire a manager. LLC managers can sign contracts and recruit/fire staff, among other things. This is a manager-managed LLC.
Delaware does allow series LLCs. A Delaware Series LLC is a business entity made up of one parent company and at least one child company. Each LLC is an entity in its own right, with its own funding and limited liability. This is helpful for businesses that need protection for several different assets, like real estate companies.
There are two types in Delaware: a Protected Series LLC and a Registered Series.
- You can start a Protected Delaware Series LLC by filing the same paperwork (the Certificate of Formation) with the Division of Corporation. The only extra step is including a Notice of Limitation on Liabilities Clause. From there, you add child LLCs by amending your operating agreement.
- You can start a Registered Delaware Series LLC by first starting a Protected Delaware Series LLC. (Same paperwork, same fees.) Then you will file the Certificate of Registered Series. This costs an additional $110 filing fee.
A Protected Series LLC is cheaper because there is only one formation fee and one annual franchise tax. With Registered Series LLCs, you must pay formation fees and a $75 annual fee per business.
However, Registered Series have the option to receive a Certificate of Good Standing alongside the Certificate of Formation, which is crucial if an individual Series LLC wants to apply for a loan.
Yes, you can form a Delaware LLC even if you live elsewhere. The only requirement is that your registered agent has a local Delaware address.
Get Help Registering
Your DE LLC
5. Get State of Delaware Business License
Every business that operates in Delaware is required to obtain a general business license from the Division of Revenue. Your Delaware business license fee depends on your industry. For example, advertising agencies have a $75 fee and travel agencies pay $225.
You can submit the form two ways:
| Online | Delaware’s One Stop |
| Call (302) 577-8778
to get a form via the mail |
This license must be renewed annually.
6. Create an Operating Agreement
An operating agreement is a document that details how your company will function behind the scenes. It defines the fundamental processes—how to vote, resolve conflict, distribute profits and losses, and even dissolve your LLC.
Operating agreements aren’t legally required in Delaware, but they are good business practice. You can use our attorney-drafted Delaware operating agreement template to get started.
7. Get an EIN
An EIN (Employer Identification Number) is similar to a Social Security number, but for businesses instead of individuals. Your EIN will be used by the IRS to identify your company on tax returns. You also use your EIN to get a business bank account.
You can apply for an EIN on the IRS website (the application is free) or by mail/fax. If you don’t have a Social Security number, you can call the IRS or file the paper form.
Hate paperwork? You can hire Northwest to get an EIN for you.
8. File State Taxes
LLCs are not required to file an annual report in Delaware, but they must pay a $300 annual tax on or before June 1st of each year. Even if you haven’t actually started doing business, you’re on the hook for the franchise tax if your LLC is registered in Delaware.
Late payment comes with a $200 penalty, so be sure to set a reminder before the deadline. If you’re worried you’ll forget, you can hire Northwest to submit your annual franchise tax for you.
Additionally, all Delaware businesses have to pay a Gross Receipts Tax, which is a tax on all of the goods/services you sell. The actual tax rate depends on your business activity, but it ranges anywhere from .0945% to .7468%.
LLCs are taxed as pass-through entities by default in Delaware. This means that your share of the LLC’s profits will pass through to your personal tax return—and you’ll likely be able to claim the Qualified Business Income (QBI) deduction. Profits earned by an LLC are subject to the federal self-employment tax rate (15.3%).
*This is informational commentary, not advice. This information is intended strictly for informational purposes and does not constitute legal advice or a substitute for legal counsel. This information is not intended to create, nor does your receipt, viewing, or use of it constitute, an attorney-client relationship. More information is available in our Terms of Service.
Ready to Start an LLC in Delaware?