Starting a business is no easy task. There are so many things to think about – from coming up with a clever and innovative idea to registering with the right government agencies to setting up shop in the right location. One of the most important decisions you’ll make as a business owner is choosing the right legal structure for your company.
There are several different types of legal structures you can choose from, but one of the most popular options is the limited liability company or LLC. Delaware is a popular state for LLCs due to its favorable business climate and relaxed regulations. In this article, we’ll explain how to start an LLC in Delaware. We’ll cover everything from choosing a name for your company to filing your articles of organization. Let’s get started!
Related: Best LLC Formation Services
Choose your LLC business name
When starting an LLC in Delaware, you’ll need to choose a name for your company. The name must be unique and cannot include the words “bank,” “trust,” “insurance,” or “realtor.” It’s also important to make sure the name is not too similar to another company’s name. You can do a search of the Delaware Secretary of State’s business name database to make sure the name you choose is available.
Once you’ve selected a name, you’ll need to file a business name registration with the Delaware Secretary of State. This form can be found on the Secretary of State’s website.
Select a registered agent
In order to start an LLC in Delaware, you’ll need to select a registered agent. This is a person or company that will accept legal notices on behalf of your company. The registered agent must be located in Delaware and can be either an individual or a business.
There are different options for selecting a registered agent, including an online service, law firm, other business, or serving as your own registered agent.
We recommend using the same online service you select for setting up your LLC. Most offer affordable registered agent services, and it’s one less thing you need to worry about.
Once you’ve selected a registered agent, you’ll need to file a registration form with the Secretary of State. This form can be found on the Secretary of State’s website.
Submit a Certificate of Formation
Next, you will need to file a Certificate of Formation with the Delaware Secretary of State. This form can be found on the Secretary of State’s website. The Certificate of Formation is basically your company’s “birth certificate.” It outlines the basic information about your LLC, including the name, registered agent, and purpose of the company.
Be sure to include all of the required information on the form, and make sure it’s signed by an authorized individual. You can mail or fax the form to the Secretary of State’s office.
Create an operating agreement
An operating agreement is a document that outlines the rules and regulations of your LLC. It’s not required by law, but it’s a good idea to have one in place. The operating agreement should include information about:
– how the company will be run
– how profits and losses will be distributed
– who is responsible for what duties
– how the company will handle disputes
You can create your own operating agreement or use a template. We recommend using a template, as it will ensure that all of the important information is included. You can find templates online or through an online service.
Obtain an Employer Identification Number (EIN)
In order to start an LLC in Delaware, you’ll need to obtain an Employer Identification Number (EIN). This is a nine-digit number that acts as a tax identification for businesses. You can apply for an EIN online through the IRS website.
Be sure to have the following information ready when you apply:
– the name of your LLC
– the address of your business
– the type of business entity (LLC, corporation, etc.)
– the number of employees
Pay Annual Taxes
In order to start an LLC in Delaware, you’ll need to pay annual business taxes. This is a requirement for all businesses in the state. The amount of taxes you’ll need to pay will depend on the size of your company and the type of business you’re operating.
You can find more information about paying annual business taxes in Delaware on the Secretary of State’s website. Be sure to review the information carefully so that you know what taxes are applicable to your LLC.
The bottom line on starting an LLC in Delaware
Starting a business isn’t easy, but if it’s what you decide, then you should certainly consider starting an LLC to protect yourself. By following the steps outlined above, you can ensure that your LLC is properly formed and compliant with all state laws. Good luck!