Create Your Own Delaware LLC in 5 Steps
Choosing to form your LLC in Delaware instead of your home state gives you many benefits. Being duly formed requires more than just filing a certificate.
Luckily, IncNow can guide you through the first 5 essential steps.
The 5 Steps to Form a Delaware LLC
Step 1: Choose a Business Name
Before you can form your LLC, you need to name it. Choose a name for your LLC that is available, meaning it is not in conflict or too similar to the two million other entities registered in the Delaware Division of Corporations. IncNow can help you with this process. Your company must also end in the words Limited Liability Company, LLC, or L.L.C. You may also want to check for name availability in other states where you plan to operate. Sometimes it is helpful to check the USPTO.gov for registered trademarks. Conducting a google search and checking to see if the website domain name can be registered will also help inform your decision.
When deciding on a name for your start-up, consider easy to spell, relatively short, descriptive of who you are, where you are doing business and what you are offering for sale. This can help kick-start your marketing. A name can be changed later. More imaginative names that are not descriptive are often more expensive to market to a new audience of potential customers.
Step 2: Choose a Delaware Registered Agent
A Delaware Commercial Registered Agent is required to have a physical office to receive lawsuits and franchise tax notices. The Registered Agent then forwards notices to the communications contact at the last known address. A summons and complaint that starts a lawsuit is known as “Service of Process”. Be sure to appoint a reliable Registered Agent to provide you timely notice. IncNow forwards lawsuits by both email and certified mail or Federal Express. This level of service is best-in-class.
You don’t need to live in Delaware to start a Delaware LLC. 89% of Delaware LLCs are owned by people located in other states and 10% of Delaware LLCs are owned by people outside the United States from over 100 countries worldwide.
All of IncNow’s formation packages come with Registered Agent service included for the remainder of the calendar year. The value in selecting IncNow is speed of formation, speed of document delivery, quality of attorney created document templates and the high level of training that results in caring and competent customer service.
Step 3: File a Certificate of Formation
Once you select IncNow as your registered agent, you can relax and let IncNow create your LLC. In order to start this process, IncNow will file your Certificate of Formation with the Delaware Secretary of State’s Division of Corporations.
The purpose of this document is to charter your company. This is the proverbial birth certificate for your LLC.
The Certificate of Formation only requires a few basic details, such as your company’s name and the name and address of your Delaware Registered Agent. The owners and manager’s names and addresses are not part of this filing. Plus, the annual fee to maintain your Delaware LLC does not require an informational annual report; so, unlike most other states, your name and address are not required to be filed to maintain your LLC going forward.
To file your Certificate of Formation, IncNow will disburse the filing fee to the state of $110. For one-business day turn-around, IncNow will add a $50 state fee to expedite the approval process. That expedited fee is included by default in the recommended “Now LLC” package.
Step 4: Prepare and Sign an LLC Operating Agreement.
An LLC Operating Agreement is an internal company document, not on record with the state. It specifies who owns your company and who manages it. It explains the owners’ rights and, at IncNow, includes a number of “pre-nuptial” provisions to prevent future disputes between owners.
All LLC members should review and sign the Operating Agreement. While an Operating Agreement in Delaware may be written, oral, or implied, the best practice is to have a formal written document signed by all members. Once signed, it should be kept with your other important business records. A clear and well drafted Operating Agreement can help prevent misunderstandings between members and future lawsuits. It can also provide for continuation of the LLC when a member dies, wants to sell their interest, quits working for the LLC, and needs to buy-out a minority member.
Step 5: Obtain an EIN Number
An Employer Identification Number (EIN) is a unique 9-digit number obtained from the IRS to identify your business for tax purposes. Think of an EIN like to a social security number, but for your business.
Your LLC needs an EIN in order to open a bank account for your business and hire employees.
IncNow offers a service to acquire an EIN for your LLC from the IRS. Many people do not like interacting with the IRS and want coaching through this process. IncNow is here to help you get started the right way.
Form a Delaware LLC Fast With IncNow.com
IncNow.com makes the process of forming your LLC quick, easy, and affordable. Delaware LLC packages start at just $9 plus state fees. You can get your LLC formed in Delaware within one to three business days with IncNow.
Forming a Delaware LLC with IncNow is as simple as 1-2-3:
1.) Fill out our online order form.
2.) We prepare the documents and file your LLC.
3.) You receive your complete LLC package, including your Certificate of Formation and LLC Operating Agreement.
You’ll be done in five minutes, hassle-free! Trust IncNow’s 50 years of experience, favorable Trustpilot reviews, and Better Business Bureau rating. Get started now!