Forming a limited liability company or LLC in Delaware does not take elaborate paperwork. File a handful of documents, hire a registered agent, get an EIN, and you are done! Your LLC will be almost ready! If this sounds easy, then let me tell you it is not when you do it! The editors shared the DIY methods of having an LLC on this page. The team also shared the name(s) of the LLC formation service you can hire.
If you're looking to form your LLC hassle-free and at a low cost, then hiring a professional would be best! This article has all the essential steps to start your LLC in Delaware. Read it for all the steps or watch the video before you start your business journey.
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How to Start an LLC in DelawareAfter Starting Your Delaware LLCDelaware Foreign LLCDelaware LLC Formation ReviewF.A.QsHow to Start an LLC in Delaware
An LLC (aka Limited Liability Company) is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. For an LLC, members' personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner's personal assets to meet the corporation's liabilities.
If you wish to start an LLC, you must file your Certificate of Formation with the State and pay a filing fee of $110. While it's the most important step, it's not the only one. There are 4 other crucial steps to follow to get your LLC formed in Delaware. Below are all 5 steps that explain everything you need to do to start a Delaware LLC in 2026. Let's get started! You can always hire a professional LLC formation service in Delaware to set up your LLC instead of doing it alone; a professional service will ensure everything is done properly.
Step 0Decide on the Structure and Nature of the Business
Before you start filing your LLC in Delaware, you must decide on the structure of your LLC (whether it is a Single-member or a Multi-member LLC). A single-member LLC is a business structure where only one individual runs the company. This type of limited liability company (LLC) provides legal protection to its owner and enables them to operate their business while taking advantage of certain tax benefits. In contrast, a traditional multi-member LLC must have at least two members involved in the company’s management and ownership.
For both types of structures, the process of establishing is the same in Delaware. The tax burden might be different if you chose a different tax structure while filing the certificate of formation.
LLC vs S-Corp
An LLC is a business structure that has the right to elect any tax structure. Despite having a pass-through tax advantage, many LLCs, for several reasons, elect a different business structure for tax purposes. An S-Corp is one of those business structures that LLCs can elect. The S-Corporation is a type of corporation that is less complicated than a C-Corporation and has vast tax benefits.
With an S-Corp, the LLC can still enjoy a pass-through taxation. However, the federal income tax will be calculated on the basis of the salary of the owner and the return he/she gets on their share of the company. There is no corporate income tax or problem of double taxation in an S-Corp. A single-member or a multi-member LLC can elect an S-Corp tax structure. However, in the case of a multi-member LLC, make sure that the number of members does not exceed 100 to be an S-Corp.
If you have a single-member LLC, electing an S-Corp can save a chunk of tax for you. As a single-member LLC, the owners have to pay about 15.3% self-employment tax. However, if you have an S-Corp tax structure, no SE tax is payable by the LLC. Read more on what tax forms LLCs file.
Step 1Decide on a Name for Your Delaware LLC
The first step while forming a limited liability company in Delaware is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follow all the LLC naming guidelines.
LLC Naming Guidelines in Delaware
There are a few specific requirements all LLCs in Delaware have to follow while naming their Company. Some of the most important requirements are as follows:
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Your business name should be available, and no other existing business in Delaware can have the same name.
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"Limited Liability Company", "LLC", "L.L.C.", "LC", "L.C.", and "Limited Company" - any one of these has to be used as a suffix in your business name.
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You cannot use any name for your business that is confusing or misleading. Terms such as "Treasury", "State Department", "FBI", "CIA", etc. shouldn't be included.
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Terms like "Bank", "University", "Attorney", "Doctor", etc, can be added only after the additional requirements by the Delaware State Government are fulfilled.
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(Optional) It's better to name your business something for which your desired domain is available.
| Important Links - | Submit Offline Form to - |
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| Delaware Business Entity Search - Online Name Search Name Reservation Form - PDF Delaware LLC Name Search Guide - Instructions Name Availability Standards - Guidelines | Delaware Division of Corporations 401 Federal Street – Suite 4 Dover, DE 19901 |
Reserve Business Name for Future
If you do not wish to file your LLC right now, but want to hold the name you have decided, then you can reserve your LLC name for 120 days. To keep the name, you must file a name reservation application and pay $75 to reserve your name with the Delaware Secretary of State.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the county Superior Court/Prothonotary by submitting a Fictitious Name Certificate Form and pay the fee of $25.
Do I have to include LLC in my company email/domain?
It is not legally mandatory to use the word LLC in your domain name or email. If you want, you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2Assign a Registered Agent in Delaware
The second step to forming an LLC in Delaware is to appoint a Registered Agent. A registered agent is a person or business entity working on your LLC's behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Delaware. Hence, hiring a competent Delaware Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of Delaware or has a physical street address. This address will be used as the principal address of your LLC to receive any legal documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $0), you also get registered agent service and other services at a very reasonable price.
- 1-day rush filing (add-on)
- Attorney help (legal plan)
- Established reputation
These two are our top recommendations for registered agent service, as they are competent and authorized to conduct business in Delaware. Some LLC formation services also offer standalone Delaware registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don't want to disclose your home address, or you don't want to pierce the corporate veil.
Who Can Be a Registered Agent?
A person above 18 years of age and who has a physical address in the state of Delaware can be a Registered Agent. A Registered Agent for service of process can be an independent person or a business entity. One is responsible for handling all the legal documents on the LLC's behalf.
Can I Be My Own Registered Agent?
Yes, you can be your own registered agent if you are a resident of the state of Delaware and you are above 18 years of age. To become a registered agent, you must have the authority to conduct any type of business in Delaware.
Why Shouldn't I be My Own Registered Agent?
There are a few reasons why you shouldn't be your own registered agent. The address of the registered agent is used to communicate with the SOS or for any legal activities. If you are your own registered agent, you might have to upload your personal address to the public forum. Besides, the registered agent must be at the address during business hours. It won't be easy for you, as you also have to take care of other things in your LLC. Hence, it is wiser to appoint a separate entity as your registered agent.
What is Piercing the Corporate Veil in an LLC?
If an LLC is sued in Delaware, in some cases, courts might decide to lift the corporate veil, which means the owners of the LLC will be personally liable for their business debts. They might have to forgo their personal assets to repay their business debts. This is called piercing the corporate veil, where personal and business assets are no longer separated. Your personal assets can be protected if you have enough capital and all your LLC documents are properly filed.
Step 3File Certificate of Formation in Delaware
The third and most important step in forming an LLC is to file the Certificate of Formation. This Delaware Certificate of Formation is a legal document that is required to register your business with the Delaware Secretary of State. It costs $110 (online and by mail filing) to file your formation certificate in Delaware.
The Certificate of Formation includes details like the name of the LLC, the registered agent's name, address, employees' details, and company structure (member-managed or manager-managed). Before hiring employees in Delaware LLC, one should thoroughly know the rules and regulations. Also, if you are expanding your existing business (an LLC) in other states to Delaware, you must register as a Delaware Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will find the Entity Search option. Check if your desired name already exists in Delaware. If not, then click on the button below to file your LLC online. Read more about the Delaware Certificate of Formation for online registration.
How to File by Mail
If you prefer filing real-life forms for your LLC registration, you can download the LLC formation form. Read the form thoroughly, fill it out, and send it to the address mentioned below. Along with the Form, make sure to submit the Cover Memo as well.
Mailing Address: Delaware Division of Corporations
401 Federal Street
Suite 4 Dover, DE 19901
Processing Time: Normally, it takes around 2-3 weeks (average) to get your LLC formed in Delaware. The processing time for online filing might be a little faster than offline filing. With an additional cost, you can get expedited filing as well (24-hr: $50, same-day: $100, 2-hr: $500, 1-hr: $1,000). However, the document processing time can be changed due to various factors.
Step 4Create Your LLC Operating Agreement in Delaware
Moving on to the fourth step, filing your operating agreement. An operating agreement is an internal document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing a Delaware LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation, which helps in making future business decisions, especially if you decide to dissolve a Delaware LLC later. Hence, having an operating agreement may not be necessary, but it is surely ideal.
Step 5Filing an LLC EIN in Delaware
The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business, for that matter.
For an LLC in Delaware, an EIN is required when the LLC hires employees. Apart from that, banking services, tax filings, and many other government documents require an LLC to obtain an EIN in Delaware. On the other hand, if your LLC is based in another state (home state) and you are expanding your business in Delaware, you must get an EIN to establish a Foreign LLC in Delaware.
To obtain an EIN (aka FEIN), one must fill out a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant to help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
After Starting Your Delaware LLC
After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things like appointing a legit registered agent, having enough capital, and filing all the major documents with the state can save the LLCs from being pierced into the corporate veil.
BOI Report Filing
According to the Corporate Transparency Act, foreign entities registered to do business in the U.S. must file a BOI report with FinCEN. However, note that as of March 26, 2025, FinCEN issued an interim final rule removing BOI reporting requirements for all domestic U.S. companies and U.S. persons. If your LLC was formed under U.S. law, you are currently exempt from BOI filing obligations — consult the FinCEN BOI page for the latest guidance, as this regulatory area remains subject to change.
Apart from that, there are a few things you need to take note of,
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Get a company business bank account
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File Delaware business permits & licenses
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Get general liability insurance and professional liability insurance with coverage for employees
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$300 annual LLC tax, due June 1. Delaware LLCs file no annual report.
This page has provided you with steps for LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date.
The LLC formation processing time in Delaware is 2-3 weeks (average). Check how long it takes to form an LLC to know about the tentative timelines.
Cost of Starting an LLC in the State of Delaware
LLCs can be formed at a lower price. Apart from the mandatory state filing fees, you don't have to bear additional service charges if you do it yourself. The following are the fees and taxes LLCs in Delaware must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Franchise Tax & Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in Delaware,
| Fees/Tax | Amount to be Paid |
|---|---|
| Name Reservation Fee | $75 for 120 days |
| Certificate of Formation Fee | $110 |
| Franchise Tax | $300 |
| Sales Tax | 0% |
In Delaware, LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then a Name Reservation is needed. It can be filed by paying $75. Your LLC name will be reserved for the next 120 days. In some states, Name Reservation is mandatory.
According to the Franchise Tax rule, LLCs have to pay this tax every year. $300 annual LLC tax, due June 1. Delaware LLCs file no annual report. If you evaluate LLC costs in Delaware, the amount of Franchise tax is not as high as for any other form of business ownership.
Delaware Foreign LLC
If you are interested in forming a Foreign LLC in the state of Delaware, then you need to file the Certificate of Foreign LLC with the Delaware Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents, like the Certificate of Good Standing, etc., to the Delaware SOS to form your foreign LLC in the state of Delaware. To know more in detail, check out our guide on Delaware Foreign LLC.
Note: Forming an LLC in Delaware does NOT save most people money. If you live/operate in another state, a Delaware LLC means you pay Delaware's $300/yr AND must register as a foreign LLC in your home state AND pay that state's fees + franchise tax (e.g., California's $800/yr) — you pay twice. Delaware is worth it mainly if you're raising VC, want the Court of Chancery, or need entity privacy. Otherwise, form in your home state.
Reasons to Start an LLC in the State of Delaware
Even when it is not entirely cost-effective to start an LLC in Delaware, it is not all loss at all. There are some good reasons to start your business in Delaware. Especially, for the long run. Some of the long-lasting benefits are as follows,
Business Laws are Cutthroat
The biggest and most critical aspect of running a business is that a person should abide by all the rules and regulations. Only in this case will one achieve success. The same laws and regulations must apply to the employees of the company. That is why it is best to choose LLC.
The rules in Delaware State are stringent, due to which keeping an eye on the employees and regulating them becomes easy. Moreover, these rules make business-to-business meetings more trustworthy and reliable. If a person opens up their LLC, then the chances of getting cheated are decreased manifolds.
Legal Bodies are Very Active
Delaware government legal bodies are more active than any other state. Also, they have the proper right to interfere if the businesses are not working in the right way. The state government will quickly solve any business issue between rivals or other similar instances.
Formation of Series of LLCs is Allowed
Here you will get plenty of expansion opportunities. The government also allows a person to make more than one LLC for the same company. The benefit of the LLC series is that one can hire different members in the new LLC at top management. Along with that, if one series is under debt, then this debt will not affect other LLCs of the series.
Delaware LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming a Delaware LLC. Click on the steps in this list to read the full details.
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The first thing you must do is choose a company name, which should be unique, easy to find, and available in the state.
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In Delaware, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
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Filing a formation certificate is necessary when forming a Limited Liability Company in Delaware. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
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An operating agreement is not a strict requirement in Delaware, but something encouraged when you start an LLC to avoid future conflicts.
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The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity, like a Social Security number, but for a company.
Things to Consider While Starting an LLC in the State of Delaware
In this article, all the basic steps to form an LLC are explained. However, there are some additional steps to consider when you're about to start your business. There are some requirements that every LLC established in Delaware needs to meet. For example, requirements for business licenses, federal requirements, tax requirements, and if you have employees, then employer requirements are needed to be considered.
For a few businesses, you can use a temporary license, especially if you have a fictitious business name. But it is mandatory to get the proper license to continue doing business in Delaware. You need to send the business license application to the state license department.
Though LLCs do not have double taxation on business income, it has other taxes to be paid. For example, self-employment taxes, sales taxes, and other federal taxes. If you are self-employed and register your company as an LLC, then you must pay the self-employment taxes. Filing taxes on time is an important part of tax requirements. On the other hand, obtaining EIN, getting employment insurance, and filing employment taxes are parts of employer requirements.
A single-member LLC is taxed as a sole proprietorship. On the other side, a multi-member LLC is taxed as a partnership. You can choose the tax structure while forming the LLC. However, if you do not choose any tax structure, then a single-member LLC will be taxed as a sole proprietorship by default.
While starting your LLC, you must have business formation plans with you. This plan includes the business type, business expenses, capital stock, and other business records. You can hire business experts to draft and implement your plan. There are licensed professionals who can help you form your LLC in the state of Delaware.
In Delaware, the operating agreement is not mandatory. But it is as important as the formation document and considers to be one of the most important official government documents. A well-drafted LLC operating agreement can be available with the business kit professionals offer. Also, with an operating agreement, you can easily dissolve your LLC in the future, as the dissolution procedure is followed according to the Operating Agreement. You can read the LLC dissolution guide to know more about it.
Every LLC needs to have a business bank account and a business credit card to separate their personal and professional expenses. It will be great to hire a business accountant to look after all your business checking. The business formation process is easy when it comes to LLC. Some of the services have excellent customer ratings. These services have potential advantages including domain name search tool, preliminary domain, domain name registration service, business dissolution guide for future company dissolution, banking resolution templates, and many more.
F.A.Qs
Can I file an LLC in Delaware by myself?
If you are a resident of Delaware, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
What is the cost of forming an LLC in the state of Delaware in a year?
Apart from the formation fee of $110 (domestic LLC) and $200 (foreign LLC), LLC costs in Delaware include $300 for Franchise Tax Reports every year. LLCs are not liable to pay sales tax.
How long does it take to get an LLC in the state of Delaware?
It takes 2 weeks to get an LLC in the state of Delaware if you file it online or by mail. It can be expedited by paying an additional amount (24-hr: $50, same-day: $100, 2-hr: $500, 1-hr: $1,000). If you hire a professional LLC service, then it might take less than that.
How to renew my LLC in the state of Delaware?
Every year, all the LLCs have to submit a Franchise Tax Report and pay $300 to the Delaware Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
What is the tax structure for an LLC in the state of Delaware?
Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose an S Corp to reduce federal tax burdens. Read more on the Delaware Classification of LLC Tax.
In Conclusion
When it comes to forming an LLC in Delaware. It is much simpler than other business structures. In Delaware, starting a small business or a start-up is easy because of its diverse resources. For small budget holders, forming a limited liability company is desirable. The steps explained in this article are generic steps for starting a business in Delaware. It is recommended to consult an attorney or service provider.