If you’re ready to chart the future of your business, forming an LLC is a great place to start. And when it comes to the registration of a limited liability company (LLC), Delaware is the most popular jurisdiction — and for good reason! Many small businesses and startups choose to form their LLCs in Delaware because of the professional in-state advice and support available.

Still, setting up a Delaware LLC can have its share of complications. U.S.-based legal counsel, like UpCounsel, offer experienced lawyers based both in Delaware and throughout the United States that are familiar with the nuances of Delaware LLCs and local regulations. When you’re ready to get started on the journey of forming a Delaware LLC, here are the top five things to consider.

Tax Rates

There’s no getting around the fact that companies must pay taxes — there’s just no avoiding it. But when you’re forming a Delaware LLC, you want to be sure that you understand the deductions you’re eligible for and which taxes you’re required to pay. Delaware has no sales tax or individual income tax but corporations and LLCs may be required to pay a franchise tax. On top of that, the U.S. federal income tax rate is still applicable and Delaware LLCs are subject to state taxes. Be sure to consult with an accountant or a lawyer specializing in tax law to get a better sense of the taxes applicable to your business.

Access to Information

Every business must comply with certain regulations and restrictions set by the local and state governments, which may include filing for copyright or trademark registration. When you form a Delaware LLC, you’ll have direct access to the state’s complete database of regulations, as well as the expertise of experienced legal professionals based in Delaware, who can provide insight into the nuances of the local legal landscape. This helps speed up the business formation process and provides peace of mind that your LLC will be compliant with all applicable laws.

Business Licensing

In addition to registering your LLC, you also have to obtain the necessary permits and licenses to operate in your state. As of late 2020, Delaware requires new businesses to complete a one-time registration process, which includes a business license, an Employer Identification Number, or an EIN, and any additional registrations and permits required for your unique LLC. Consulting with local legal experts can further help navigate the requirements and paperwork that come along with completing the registration process.

Financial Lenders

When you’ve set up your LLC and your business is up and running, you might find that you need funding for supplies, equipment, expansion, or other initiatives. Fortunately, there are many lenders available to help business owners with financing their LLCs. Obtaining a loan or other type of financing to help later on in the business venture is on the top of many business owners' minds, and consulting with legal professionals or financial advisors can help ensure that you’re getting the best deals on lending rate.


Creating a powerful LLC structure involves more than just setting up an LLC with a name and a few document fromations. Corporate Structuring, or restructuring, involves defining clear roles and responsibilities amongst each LLC member, as well as internal oversight mechanisms and other management structures. At the onset, many business owners overlook or simply don’t understand the importance of setting up a strong corporate structure. Consulting with an experienced lawyer can ensure that the structure, rules and regulatory guidelines meet those applicable in Delaware and the United States.

When you’re ready to take the leap and start your own LLC, forming one in Delaware can be a great option. With the help of experienced legal counsel, you can make sure that your LLC is in compliance with all local and state regulations, as well as receive guidance on filing taxes and gaining access to the necessary information and resources to keep your LLC running smoothly.


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