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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
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:
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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
6. Comments
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]. - Payment
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.
F.A.Qs
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.
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.
When looking at the cost of registering a foreign LLC in Delaware, several elements need to be taken into consideration. Firstly, there are the initial filing fees that have to be paid to the state of Delaware. The amount of these fees can vary depending on the structure of the business, the number of members in the LLC, and whether the registration is being done online or by mail. These filing fees can range from a few hundred to a few thousand dollars, so it is essential to budget accordingly.
In addition to the initial filing fees, there are also ongoing costs associated with maintaining a foreign LLC in Delaware. These annual fees typically include the cost of keeping the LLC in good standing with the state, as well as any franchise taxes that need to be paid. These costs can add up over time, and it is crucial to keep them in mind when planning the budget for your business.
Another factor to consider when looking at the cost of registering a foreign LLC in Delaware is whether you will need to hire a registered agent. A registered agent is a third-party individual or entity that is responsible for receiving legal and official documents on behalf of the LLC. While hiring a registered agent is not required by law, it is highly recommended, especially for foreign businesses, as it can help ensure compliance with Delaware regulations and streamline communication with state authorities.
It is also essential to consider any additional costs that may arise during the process of registering a foreign LLC in Delaware. For example, if you need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), there may be associated fees. Additionally, if you require any specialized legal or financial assistance during the registration process, you will need to budget for those services as well.
In conclusion, while registering a foreign LLC in Delaware can offer many benefits to business owners, it is crucial to carefully assess the costs associated with the process. By understanding the initial filing fees, ongoing maintenance costs, the need for a registered agent, and any additional expenses that may arise, you can better prepare financially for establishing your business in the state. Ultimately, budgeting appropriately for the registration of your foreign LLC in Delaware will help set your business up for success in the long run.
In Conclusion
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.