How to Set Up an LLC in Delaware

We’ve put together a free step-by-step guide on how to set up an LLC in Delaware. We want you to have a clear idea of how to set up and manage an LLC for your state. We’ve tried to make sure you have the information you need right at your fingertips. Each step has instructions and links to the sites for you to fill out the forms in the correct order. So, let’s set up your Delaware LLC right now! 

A few points to remember before setting up your LLC in Delaware 

When you set up an LLC in Delaware you’ll need a few things before you get started.  This section will help you get your checklist in order.

A Unique Business Name 

Every business in the state must be unique. You’ll need to search for a Delaware LLC name. Go to the Delaware Division of Corporations: Name Availability Search to make sure yours is not taken. 

An LLC Designator 

Once you’ve chosen a unique business name you’ll need to decide on your LLC designator.  When you set up your LLC in Delaware.  You can chose one of the ones below.

• LLC (most common)
• L.L.C.
• Limited Liability Company 

A Registered Agent 

In most states, a registered agent is a person or a company that accepts “Service of Process” for your Delaware LLC. A registered agent will receive any subpoenas, notices, and other legal, and tax documents sent to your business by the Delaware Division of Revenue. 

If you’re opening a business in Delaware but you aren’t a resident, you’ll need to get a registered agent in that state.  The requirements for a registered agent are as follows: 

An Individual: 

• Must be 18 and be a resident of the state 
• Must be authorized to do business in the state. 
• Must have a physical street address located in Connecticut  

 A Company 

• Must be authorized to do business in the state 

If you meet the above criteria, you can be your own registered agent. Or you can set up a friend or family member to be your registered agent. 

You can also hire a commercial Registered Agent. A company that provides their name and address to receive legal documents from the state. 

Step 1: Reserve your Business Name

To Set up an LLC in Delaware you can reserve your business name.  This way during the process no one can steal the name of your company. 

You can reserve your name at the Delaware Division of Corporations: Name Availability Search or by mail.  

The fee for reserving your business name is $75.00. 

Step 2: File Your Certificate of Organization in Delaware

Setting up an LLC in Delaware is easy, especially for single-member LLCs. Just go directly to the Delaware Division of Corporations.    

If you don’t want to file online, you can download and fill out the Certificate of Formation here.  

Fees: In Delaware, the cost of setting up your LLC and filing the certificate of formation is $90.00 both online and by mail. It would take 3 to 4 business to get approval back. 

Step 3: Complete Your Delaware LLC Operating Agreement 

An operating agreement is a key document used by LLCs and partnerships. It outlines the business’ financial and functional decisions including rules, regulations, and provisions. This describes how your LLC will operate internally. For more information on operating agreements, you can check out the Small Business Administration’s article on basic operating agreements. 

Step 4: Get Your Federal Tax ID Number (EIN) 

Once your Connecticut LLC has been approved it’s time to get your Federal Tax ID Number from the IRS.   

Your EIN is the social security number of your business.  Keep it well protected.  You’ll use this number to open bank accounts, file tax documents, apply for loans and many other uses.  It also protects your social security number when doing business with other businesses like merchant accounts, 1099s received etc. 

To apply for your EIN you can go to IRS EIN/Tax ID Application.  Make sure you pick the correct Business Entity Type.   

Step 5:  Register and liscense your business to operate in Delaware

If you plan to have property or a business location in Delaware, have employees that work in Delaware, or generate sales in Delaware you’ll need to register and license your business.  To set up your LLC in Delaware they have specific rules to follow.  You can register your business in Delaware here

Taxes, Permits, and Licensing in Connecticut  

Keep yourself compliant after you set up your LLC in Delaware by filing your Annual Franchise Tax.  Failure to pay will result n a penalty of $200 plus 1.5% interest per month of tax and penalty.

There may be permits and licenses A lot depends on the type and location of your business.  

Aside from the Annual Franchise Tax, your LLC must pay other taxes and meet obligations in the Delaware Division of Revenue. 

Putting it All Together

Now that you can set up an LLC in Delaware online it shouldn’t take more than a week or two to get up and running.  The Delaware Division of Corporation’s website is very easy to navigate and following the five steps above will help you get your talents and ideas to market faster.