If you already have an LLC in another state and want a Delaware LLC, then how to start an LLC would be somewhat different. You must register as a foreign LLC. We have here a guide on how you can qualify and register for a foreign LLC in Delaware.
On this page, you’ll learn about the following:
- Forming an Delaware Foreign LLC
- Steps to Filing Delaware Foreign LLC Online
- After Forming Delaware Foreign LLC
Forming an Delaware Foreign LLC
A foreign LLC does not need to be a company from another country but a business formed under the laws of another state. To start a foreign LLC in Delaware, you need to register it with the Delaware Secretary of State.
Step 1: Choose Delaware Foreign LLC Name
Obtain a name reservation certificate and submit it with your foreign qualification requirements at the Delaware Secretary of State. Your LLC’s legal name outside of Delaware will be listed on the application, along with the name it will use in Delaware. Take note of the requirements for naming your LLC.
Check name availability at Delaware’s business entity names and reserve your LLC name.
Step 2: Select Delaware Foreign LLC Registered Agent
You’ll need a registered agent to form a foreign LLC in Delaware and take note that a Delaware registered agent must have a local address. Here are three of the best LLC services on our list that can provide you with registered agents to ease your worries:
Step 3: File Registration of Delaware Foreign LLC
Fill out and submit a Foreign LLC Application for Registration form via email to [email protected] or by mail to:
- Regular Mail: Division of Corporations PO Box 898 Dover, DE 19903 or
- Express Mail: Division of Corporations John G. Townsend Bldg. 401 Federal Street, – Suite 4 Dover, DE 19901
Include the following:
- LLC’s full legal name.
- A fictitious name or a DBA (only if your LLC’s legal name is not available); Attach a statement of adoption of the fictitious name signed by all LLC members.
- LLC’s principal office and mailing addresses.
- LLC formation state and date.
- Registered agent’s name and address in Delaware
- Date when your LLC will start operations in Delaware.
- Credit card information on the last page of the form for the $200 application fee.
The LLC cost in Delaware, even for foreign LLCs will differ between online filing and by mail.
Step 4: Determine How Your Delaware Foreign LLC is taxed
Foreign LLCs are also subjected to the Delaware Business Privilege Tax, and they must file LLC annual reports each year.
Note that forming a foreign LLC would be good for your business as you can legally operate in a different state thus reaching a larger market and opening more opportunities for higher profit.
Steps to Filing Delaware Foreign LLC Online
Time needed: 5 minutes.
Delaware Secretary of State does not have any provision for online registration of foreign or domestic LLCs. The LLCs have to download the form, fill it up and send it to the official address via mail. However, businesses can upload the form or any documents online to the ‘Document Upload Service’ page. Here’s what you have to do to register Delaware foreign LLC online,
- Download and Fill Out Registration Form
To start with one has to download the registration form available on the Delaware Secretary of State portal. Download the form on your computer. Fill it up with the required information. Before start filling up the form, make sure to read all the terms and conditions.
- Upload Completed Form
Once the form is done filing, visit the online Document Upload Service portal to submit the form. Select the ‘Document Upload’ section.
Along with the documents, one has to mention some important information regarding the LLC. The steps are similar to the Delaware Certificate of Formation.
Points to mention in the Document Upload Page:
1. Priority Type
2. Submitter Infor (name, address, city, state, email)
3. Document request type
4. Corporation name, type of document/type of certification
5. Return method
You can upload the document in the document request type section. By clicking the Continue button you will be on the next page.
Points to note about Document Upload:
1. This is a new service by the Delaware Division of Corporations for eFiling
2. For the existing and frequent users, a My eCorp Account will be created. This account should be linked with their existing Division of Corporation account.
3. The service is not available on weekends or on any holidays. The timing of the service is Mon-Thurs from 7.45 am to 11.59 pm (EST) and Fri from 7.45 am to 10.30 pm (EST)
4. Technical Support contact: call at (302) 857-4626 or email at [email protected].
Once you have done uploading documents, you have to make the payment. The Franchise Tax and other payments can be made online. Payment should be made by using VISA, MasterCard, and American Express cards.
It is convenient plus easy to file for the foreign LLC if you are doing it online. The steps are very easy and that’s why it’s possible to go along with the steps and form the foreign LLC in Delaware.
After Forming Delaware Foreign LLC
Here are added things you need to accomplish after forming your Delaware Foreign LLC
- Obtain Business Licenses. Find the business licenses you’ll need using the Business License Search.
- File LLC annual reports and Business Privilege Tax.
- Pay State Taxes like sales tax; you’ll need an EIN for your LLC.
How Much Does It Cost to Register a Foreign LLC in Delaware
To register as a foreign LLC in Delaware, you can file through mail by paying $200 or online by paying a filing amount of $200 payable to the Delaware Secretary of State.
Forming a limited liability company (LLC) in Delaware is a popular choice for business owners seeking to establish a company in the U.S. Delaware offers many advantages, including a strong case law, a business-friendly environment, and a straightforward formation process. However, registering a foreign LLC in Delaware also comes with a few additional costs.
The first cost to consider is the Delaware LLC filing fee. This fee is $90 and covers the cost of filing the Articles of Organization with the Delaware Division of Corporations. This fee must be paid when filing the Article and is non-refundable.
The second cost is the Registered Agent Fee. All companies formed in Delaware are required to have a Registered Agent in the state. The Registered Agent’s job is to receive important documents and notices on behalf of the business. The cost of a Registered Agent in Delaware can vary, but typically ranges from $50 to $200 per year.
The third cost is the Publication Requirement. Delaware requires that all foreign LLCs must publish a notice of their formation in a local newspaper. This publication must be done within 30 days of filing the Articles of Organization and costs approximately $200.
The fourth cost is the Annual Franchise Tax. Delaware requires all LLCs to pay an annual franchise tax. The amount of the franchise tax depends on the LLC’s gross income and can range from $50 to $200 per year.
The fifth cost is the Annual Report Fee. In addition to the franchise tax, all LLCs are required to submit an Annual Report to the Delaware Division of Corporations. The fee for filing the Annual Report is currently $50.
Finally, the sixth cost is the LLC Operating Agreement. This document outlines the internal rules and regulations of the LLC, and is required to be filed with the Delaware Division of Corporations. The cost of creating an Operating Agreement can vary, but typically costs between $150 and $200.
In total, the cost of registering a foreign LLC in Delaware can range from $490 to $740. This cost includes the filing fee, the Registered Agent fee, the Publication Requirement, the Franchise Tax, the Annual Report fee, and the Operating Agreement.
While registering a foreign LLC in Delaware may have some additional costs, the benefits of forming an LLC in Delaware far outweigh the costs. Delaware is an attractive choice for business owners seeking to establish a company in the U.S., as it offers many advantages, including a strong case law, a business-friendly environment, and a straightforward formation process.
If your LLC is formed under the laws of another state, it is referred to as a foreign LLC in Delaware.
Businesses incorporated outside of the state where they operate must have “foreign qualifications” issued in the other states.
A domestic LLC is a company registered in Delaware as an LLC. The entity type that has a physical presence in another state is a foreign LLC.
Starting a foreign LLC in Delaware does not require a lot of documentation or tasks. However, it is always good to seek help from a professional when it comes to running your business. Get a professional registered agent and form your foreign LLC anywhere without a hassle.