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Forming an LLC in Delaware
Forming an LLC in Delaware is certainly not difficult. If you still prefer to stay away from the paper work, there are many incorporation agencies that can take care of the process of forming and LLC in Delaware for you. Involving a legal expert is not required by Delaware state law, but letting an attorney check your Operating Agreement is still a good idea because a flawed Operating Agreement can lead to problems with the IRS farther down the road.
Forming an LLC in Delaware in 5 easy steps
- First and foremost, your company must have a name. The name should be unique (i.e. not used by another LLC) and cannot violate applicable trademark law. The company name must contain a so called LLC identifier, which means that you must include the words “Limited Liability Company” or an abbreviation such as “LLC”. According to Delaware law, you cannot use the words “bank” or “trust”, or any variations of these words, in the name of an LLC.
- When you have picked a name for your LLC, you can file the Articles of Organization with the Delaware filing office.
- The next step is to hold an organizational meeting where the members of the LLC adopt an Operating Agreement for the LLC.
- Once the Operating Agreement has been adopted, it will be possible for the LLC to get a Federal Employer Identification Number (FEIN) and you can open a company bank account.
- The last thing to do is to figure out in which cities (or counties) that your LLC will be conducting business and proceed to acquire business licenses from each and every one of them.
Important facts to take into consideration before forming an LLC in Delaware
- In the state of Delaware, the minimum LLC filing fee is $119.00. (For 40 business days.)
- For an LLC formed in Delaware, an annual report must be filed by June 1st each year. The annual report fee is $30.
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