Delaware LLC Articles of Organization: Everything You Need to Know
Delaware LLC articles of organization, or certificate of formation, is needed to register your LLC with the state of Delaware. 3 min read
Advantages of Forming an LLC in Delaware
In addition to the benefits of forming an LLC in Delaware, starting a business is quick and easy. Here are few advantages of forming an LLC in Delaware.
- Complete all necessary forms and actions online.
- LLC limits your personal liability — debts, obligations, and other liabilities of your business are separated from you as the business owner.
- LLCs in Delaware are easy to maintain, no need to form a board of directors, complex rules, and regulations for annual meetings.
- LLCs can also add and amend members and make other changes using a little paperwork.
- Lastly, filing taxes are much simpler.
How to Start an LLC in Delaware?
Setting up an LLC in Delaware is simple:
- Name Your LLC. Finding a name for an LLC is the first step in starting your business. You need to make sure that the name fits and could be used to brand your business. A unique and original name for your Delaware LLC is essential to ensure that no business is using your target name. Do a Delaware business entity name search to check if your business name choice is already taken. The business name needs to contain the words Limited Liability Company or the abbreviations LLC. In finalizing your business name, make sure to avoid the prohibited words that would confuse the name with a federal or state agency like FBI, Secret Services, Treasury, etc. In addition, restricted words like bank, attorney, university require additional paperwork such as proof of licensed individuals.
- Secure a Domain Name. Apart from securing the business name to be registered on the appropriate state agency, it's also good to reserve a domain name for your business. Even if it's still not your plan to build a website for your business, you might want to get the domain for others not to acquire it. An email address related to your business name is a good option to consider. In this way, branding your business online will be easier.
- Street Address. A designated address is needed for a Delaware LCC. It might be the home address (if you're running the business from your home address), a physical address of the business, or even outside of Delaware. One can also use a P.O. Box as a designated address in Delaware, unlike other states.
- Choose a Registered Agent. The business needs to nominate a registered agent, a person or business tasked to send and receive legal papers on behalf of the LLC. The registered agent must be available during business hours to attend legal correspondence. The agent's name and address will be part of the public record available on Delaware's Secretary of State's website. Furthermore, the agent must be a resident or a corporation allowed to transact business in Delaware.
- File the Certificate of Formation. Filing the Certificate of Formation, which can be done by mail, is needed to register your LLC with the state of Delaware. For a Domestic LLC, filing the Certification of Formation will cost you a non-refundable $90 payable to the Secretary of State and an additional $100 for expedited services.
- Create an Operating Agreement. The operating agreement is required when forming an LLC in Delaware. The operating agreement, which can be a verbal or written agreement, is a legal document detailing the ownership and operating procedures of the LLC. However, the agreement is not required and can be changed any time without paying for an amendment fee.
- Obtain an EIN. To identify a business entity, an Employer Identification Number (EIN) or Federal Tax Identification Number is required when filing state and federal taxes. EIN is also the social security number for the company. This is also required by banks to open business checking accounts. Getting an EIN is free and can be done in two ways: online and print and mail form.
Here are the fees for getting certified copies of Delaware articles of organization:
- $50 per document plus $2 per page, for normal processing
- $1000 for Priority 1 expedited processing
- $500 for Priority 2 expedited processing
- $60 for Priority 3 expedited processing
- $50 for Priority 4 expedited processing
Payments can be done via Check, Money Order, Visa, MasterCard, or Discover and payable to Delaware Secretary of State.
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