How to Start an LLC in Delaware | 2024

If you’re thinking of joining them, this guide on how to incorporate an LLC in Delaware is for you.

We’ll walk through an overview of the process to create a Delaware LLC, including the requirements for Delaware LLC registration and the fees and forms you’ll need to think about for your Delaware LLC application.

Finally, we'll discuss how Wise Business can give you a global account capable of handling your international financial needs.

How to Start an LLC in Delaware

The Delaware Division of Corporations is the authority on how to create a Delaware LLC, and oversees the end to end process of Delaware LLC registration.

There’s lots of information available directly from the Delaware Division of Corporations¹ to guide you through the process - and we’ve summarized the steps you’ll take in your Delaware LLC application here, to give you a flavor.

Later we’ve also got some extra information on the costs of the process, what to do if you’re not living in Delaware yourself - or even if you’re a foreigner looking to create a Delaware LLC.

Let’s get started.

1. Name your Delaware LLC

First up when starting an LLC in Delaware is to choose the name you’ll use. Your preferred name must be distinct from other entities, and include the designation LLC or similar.

There are handy tools online to help you check the availability of the name you want, before reserving it. If you decide to reserve the name you’d like to use, you’ll pay 75 USD to hold the name for up to 120 days, giving you enough time to get the rest of your application arranged without worrying that your name may be taken by another applicant. At the point that you submit your filing there’s an additional fee of 75 USD to pay, which is part of the registration process.

2. Find and choose your registered agent

One of the Delaware LLC requirements is to find and appoint a registered agent, unless your business is physically located in Delaware. If you’re based in Delaware you can choose to act as your own registered agent if you want to.

Your registered agent must reside in the State of Delaware and have a physical office address there. The registered agent is responsible for supporting registered LLCs on issues such as billing and tax. There’s a list of registered agents² who have been approved by the state authorities available online to help you to pick one. It’s worth shopping around here, particularly if you’re looking for specific help - as a foreigner starting a business in Delaware for example, or because you’re not familiar with the local laws.

3. Prepare and file a Certification of Formation of an LLC

Your next task - with the support of your agent - is to complete the certificate of incorporation or formation.

The good news here is that Delaware makes it very easy to complete this process. The template forms are available online in a fillable format which allows you to complete the process online, and submit your documents electronically for the fastest service. If you’d prefer you can also print off the forms and mail them to be verified and reviewed.

4. Submit a certificate of corporation from the state

Again, your registered agent can help to guide you through the next steps in the incorporation process. You’lll complete this step through the Delaware document filing and request service, or by printing off the documents and mailing them in. At this stage you must also pay the filing fee - we’ll look a bit more closely at what it costs to form a Delaware LLC later.

5. Report Beneficial Ownership

Depending on your business type and your specific situation, the The Corporate Transparency Act (CTA) may require you to report beneficial ownership to FinCEN - the Financial Crimes Enforcement Network. This is a reasonably new requirement, so it’s worth reading up about it if it’s unfamiliar to you³.

This law requires you to give identifying information about the individuals who control your company to FinCEN, with the aim of preventing fraud and opaque ownership structures being used to commit crimes or evade tax.

6. Check if you need a certificate of good standing

Your financial institution might ask you to provide a certified certificate of good standing, which you can apply for at the same time as you incorporate your Delaware LLC. Fees appy - 50 USD per certificate for a Short Form Certificate of Status (which states the name and status of entity) or 175 USD for a Long Form Certificate of Status.

7. Pay the annual tax for your LLC

Once you have incorporated an LLC in Delaware you’ll also need to pay an annual tax of 300 USD, by 1st June annually. There’s no need to file an annual report for an LLC - although this is required for some other company types.

What are the business requirements for a Delaware LLC?

To start a Delaware LLC you’ll need a registered agent. If your company is based in Delaware and you have a physical office there, you may act as your own registered agent. However, if you are from out of state or overseas, you can get a local registered agent to act on your behalf. The information you’ll be asked to submit as part of your LLC formation certificate includes the name of your LLC, and details of the registered agent.

Your LLC name must be unique and contain the words Limited Liability Company, L.L.C. or LLC. As part of your application you’re also required to pay fees to the state, and agree to pay annual taxes on your business.

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What are the benefits of starting an LLC in Delaware?

Delaware is a very popular place to start an LLC or other company entity type⁴. The state offers a complete package of incorporation services which makes the end to end process to start an LLC in Delaware pretty straightforward. You can open a single person LLC which makes this a good place for newer entrepreneurs, and it’s possible to complete the process through a registered agent which means you don’t need to be in the state to get everything set up.

The environment is considered to be business friendly and accessible, and the business formation statutes are flexible and advanced. Another unique factor in Delaware is the Delaware Court of Chancery which is viewed as a very efficient place to deal with business disputes and litigation. Plus, Delaware does not have state tax for out of state entities. While there is the state franchise tax to pay, this is pretty small for most business sizes.

Another reason that so many people start businesses in Delaware is the level of expertise in the state to support foreigners and people from other areas of the country incorporating a business. As so many people complete this process, there are many options for registered agents, including some which deal routinely with overseas clients for example. Adjacent services like business banking are also accessible to locals and foreigners alike, making this an attractive solution for many new entrepreneurs and business founders.

How much does it cost to start an LLC in Delaware?

The price you pay to start your LLC in Delaware will include several different fees, including agent costs, any legal or paperwork charges to pull together your application, and the fees you’ll pay to the State of Delaware during the registration process.

Agent fees can vary depending on the services you select - similarly, the costs of arranging all your required paperwork may depend on your personal situation.

Delaware fees for registering an LLC ae fairly straightforward - here’s a rundown:

Can I open an LLC in Delaware without living there?

Yes. Delaware LLC registration is open to local residents, but also to people living elsewhere in the US or abroad. The most important point here is that all businesses must have a registered agent in Delaware, which could be the business owner - or an official registration agent if you’re not physically present in the state.

Can a foreigner open a company in Delaware?

Yes. You can open an non-resident Delaware LLC in most cases. The only key exceptions are for people from restricted countries, where sanctions may prevent them from forming a Delaware LLC. The good news as a foreigner is that, because Delaware attracts many overseas entrepreneurs, there are many agents who can help foreigners, and banks in the state are also used to dealing with overseas clients.

The process to open your company in Delaware as a foreigner is the same as if you were a US citizen living in another state. Simply appoint the registered agent you prefer, who has a physical office in Delaware, and the process can be completed without you even needing to visit.

As a foreigner opening an LLC in Delaware, do bear in mind that you may also have other obligations - for tax, reporting and administration - in other countries. You may need to register in your home country or in other countries where you do business, for example - and tax can also become more complex if you’re operating overseas. Be sure to take professional advice to keep your business processes on the right side of the law, in Delaware, elsewhere in the US and wherever else you do business.

So, there you have it - our full guide on how to get an LLC in Delaware. If you’ve decided to form a Delaware LLC you’ll need to make sure you’re clear on how the end to end process will work based on your own specific situation. Getting professional support to incorporate an LLC in Delaware is a smart plan - but the process is fairly intuitive, and there’s lots of great help online to allow you to get a feel for what’s needed. Use this guide to get started, and good luck in your business. journey.