Delaware LLC Registry: Everything You Need to Know
Registering in the Delaware LLC registry is a smart business decision. Once this decision has been made, the next step is to implement that decision.3 min read
2. Delaware LLC Formation: Step by Step
3. Privacy and a Delaware LLC
4. Contact Person
5. Franchise Tax
Delaware LLC Registry
Registering in the Delaware LLC registry is a smart business decision. Once this decision has been made, the next step is to implement that decision.
Delaware LLC Formation: Step by Step
The first step: Choose a company name.
- You want to be certain that your chosen name is not in use by a different company.
- The Company Corporation can perform a quick search to make sure that your chosen name is available and it can reserve that name for you.
- Once decided, the Company Corporation can help you fill out the state-mandated questionnaire and file it on your behalf.
- Note that the Company Corporation provides an easy to use online form that you can fill out, which they will help complete and then file on your behalf.
The third step: Create a Delaware LLC operating agreement.
- Even though law does not require such an agreement, it is recommended and helpful. If your LLC is a multi-member LLC, the operating agreement serves as an outline that clearly and legally defines each LLC member's role and investment in the business.
The fourth step: Choose a registered agent.
- The Company Corporation can be your LLC’s registered agent, as it does for many businesses.
- The Company Corporation, as your registered agent and therefore your point of contact for legal and other state paperwork matters, would receive anything that may be served.
- In addition, the Company Corporation would explain the service of process and answer any questions you might have.
- For further information regarding forming an LLC in Delaware, just visit the Delaware LLC website.
Once you have completed these steps, you will receive a Delaware LLC Certificate of Formation that verifies your Delaware LLC registration. For your LLC to retain its good standing status, you will be required to pay yearly franchise fees.
Privacy and a Delaware LLC
People who form an LLC in Delaware may want to know what information remains private and what will become public. You should know that in Delaware, LLC privacy is for real. An LLC filed in Delaware through a professional Registered Agent allows you to retain confidentiality at the highest level. Typically, only the company’s name and the Registered Agent’s name and address will appear on the Certificate of Formation, together with the filing date and the company file number.
A bonus, in terms of privacy, of a Delaware LLC is that no information about the members or managers must legally listed on the Certificate of Formation. What’s more, the Delaware Division of Corporations does not request, attempt to obtain, or store any information with respect to the LLC’s members and managers.
However, your Delaware Registered Agent is required to maintain records of the LLC’s contact person, including that person's address.
Notes on the contact person:
- This person must be an actual person age 18 and over.
- The contact person need not be a member or manager of the LLC and need not reside in the US or be a US citizen.
Notes about Delaware’s Franchise Tax:
- Once you completed the initial formation of your LLC, a Franchise Tax of $300 for the prior year must be paid by June 1 of each year.
- If the Tax is not paid by June 1, the LLC will be assessed a $200 penalty, with interest assessed immediately.
- Note that the state of Delaware keeps a record of all Franchise Tax payments. The records include the date and amount of each payment.
- If you pay the required Franchise Tax through the state's website, the state will have a record of the transaction, which includes the credit card number. As such, if the Company Corporation is acting as your Registered Agent and you pay the Franchise Tax through its website, the state will not have your credit card number.
Your Delaware LLC privacy level will be 100 percent.
If you need help with registering your LLC in Delaware, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.