Delaware LLC Filing Requirements
A Delaware LLC business structure offers liability protection and tax advantages. To form an LLC in Delaware, you must meet the State's LLC filing requirements.
When you set up your business as a Delaware LLC, you’ll want to consider all of the State’s requirements and regulations. For instance, the State requires all businesses to choose a unique name that’s not too similar to other registered entities in the area. You’ll also need to appoint a registered agent—a person or business that will receive legal papers on behalf of the company—and have a physical address in the State.
How to Form an LLC in Delaware?
While the State of Delaware has a reputation as a corporate tax haven, it does have specific regulations for business owners to comply with. This includes registering the LLC with the State and paying various taxes.
The first official step in establishing a Delaware LLC is preparing and filing the Certificate of Formation. This document lays out important information about the LLC, including its name and address. It also requires the designated registered agent. This person or business agrees to receive legal papers on behalf of the LLC if it is sued. The agent must have a physical street address in the State of Delaware (PO boxes are not acceptable) and be available during regular business hours.
A Delaware LLC must also obtain a State business license before conducting any commercial activities. This process typically takes 60 days and can be done online through the One Stop website. In some cases, the city or county where the LLC operates may also require the company to obtain a permit. The LLC must also pay the State’s gross receipt tax and submit withholding taxes to its employees.
Delaware Certificate of Formation
The Delaware Certificate of Formation is essentially a birth certificate for your Delaware Limited Liability Company (LLC). The legal document filed with the Delaware Division of Corporations officially establishes your LLC in the State. Compared to other states, Delaware keeps things relatively simple. The certificate requires:
- Your LLC’s name
- The address of your Delaware registered office
- The name and address of your Delaware Registered Agent (an individual or service company designated to receive legal documents on behalf of your LLC).
Delaware Certificate of Formation is the only document you need to file to form a Delaware LLC. It differs from a Certificate of Incorporation, which applies to corporations (not LLCs). While Delaware offers privacy benefits, the names and addresses of the registered agent and office do become part of the public record.