Welcome to Delaware USA Road SignDid you know: 60% of the Fortune 500 have made Delaware their legal home. It’s a popular choice for both corporations and LLCs because of its small business-friendly economy and laws.

If you’re considering starting a business in Delaware, consider the LLC as your business structure. Not only will it protect your personal assets, but it also requires less formal paperwork than its cousin, the corporation.

Here’s what you need to know if you plan to form an LLC in Delaware.

Who to File With

The Delaware Division of Corporations is the entity to file your LLC paperwork with. If you hire CorpNet to file your Delaware LLC paperwork on your behalf, we will send it to the Division of Corporations for you.

You Need a Registered Agent

A registered agent is an individual or business that is authorized to act on your behalf with the State of Delaware. If you do not have a physical presence in Delaware, your registered agent will receive your LLC paperwork and documents on your behalf.

CorpNet is a registered agent, and is licensed to form LLCs in Delaware for you.

You Can Reserve Your Business Name

While forming an LLC in Delaware automatically ensures that no other registered business entity will use the same name as your business, you may want to reserve that name if you’re not quite ready to file your LLC paperwork. Doing so with the Delaware Division of Corporations will hold your name for 120 days, which gives you more time to file your LLC application.

You Must Submit Your LLC Application and Pay the Fee

The state of Delaware has a specific format for your application, found here. Fill it out and follow directions so your application isn’t rejected. Alternately, CorpNet can file the paperwork for you.

The filing fee for an LLC in the state of Delaware is $90.

You Can Opt for a Certified Copy or Certificate of Good Standing

Some banks and financial institutions request you to provide a certificate of good standing or a certified copy of your LLC filing as proof that you are in the process of creating an LLC. You can pay an additional fee when you submit your LLC paperwork if you need these documents.

You Have Annual Responsibilities

Each year, you (or your registered agent) will receive notification that you need to pay an annual tax of $300. This tax for LLCs in Delaware is due by June 1 each year. As an LLC, you are not required to file an Annual Report.

Ready to form an LLC in Delaware? First download our free ebook, The Ultimate Guide to Starting, Protecting, and Operating a Business in Delaware!