How to Start Your Own Company in Delaware!

While forming a company in Delaware might seem daunting to most, with the guide below, you can set up your own company in the US step-by-step!

Of course, at Growth Business, we handle everything for you, delivering your company ready for business in just a few days!

Let's see how you can start your own company in Delaware!

Step 1: Name Your LLC Company

You must choose and reserve a name for your company before proceeding with your LLC registration. This name must follow Delaware's guidelines, the most important of which are: it must include the words "Limited Liability Company," "LLC," or "L.L.C."; it must be distinguishable from other names already registered in the state; and it must not contain words that would give the impression it is a government agency.

Also, some words like "bank" or "attorney" may require additional approval. Check the URL availability for your desired name, and if you're not ready to register your LLC yet, you can reserve the name for up to 120 days by paying a fee.

At Growth Business, we check the name you provide to ensure it is 100% available for registration!

Step 2: Choose Your Registered Agent

In Delaware, it is mandatory to appoint a Registered Agent for your LLC. This can be either an individual (such as yourself or an LLC employee) or an entity that offers similar services.

The agent must have a physical address in Delaware and be available during normal business hours to receive official documents and notices on behalf of the company.

When you choose Growth Business for your company formation, we act as your Registered Agent, and you remain completely private!

Step 3: Prepare and File the Certificate of Formation / Articles of Organization

The Certificate of Formation, also known as Articles of Organization in other states, is the official document that establishes your LLC, outlining its basic details.

You will need to complete this document with the necessary information and file it electronically or by mail with the Delaware Division of Corporations to register your LLC. The required information includes the company name, the Registered Agent, the company's principal address, and the signature of an authorized person.

Once filed, this document will be reviewed by the relevant department, and upon approval, your LLC gains legal standing, and you are ready to start your business.

Growth Business company formation packages include the creation of the Articles of Organization and, of course, its filing with the respective state!

Step 4: Obtain an Official Certificate from the State

After the successful filing and approval of the Certificate of Formation, the state will issue a certificate confirming the official existence of your LLC. This certificate will allow you to obtain an Employer Identification Number (EIN), apply for business licenses, and open a business bank account, laying the groundwork for your business operations.

Step 5: Draft the Operating Agreement

Although an Operating Agreement is not required in Delaware, this document is crucial for the smooth operation of your LLC. It is an agreement that defines the terms of the business's operation and helps prevent or resolve potential disputes.

Without such an agreement, courts will apply state law, which may not align with the interests of the LLC or its members.

In this document, you can include essential details such as the company name, address, duration of the company, business purpose, members and their contributions, profit and loss allocation methods, as well as procedures for admitting or withdrawing members and managing the business.

Step 6: Obtain an Employer Identification Number

The Employer Identification Number (EIN), which is nine digits long, is issued by the Internal Revenue Service (IRS) and is essential for identifying your LLC for tax and other purposes. You can obtain the EIN online or by mail. This number is vital for filing taxes, opening business bank accounts, and hiring employees.

Step 7: Pay the Annual Franchise Tax

Every LLC in Delaware is required to pay an alternative entity tax, also known as the annual tax, which amounts to $300 and is due annually by June 1st.

This is the "Franchise Fee" and is unrelated to your turnover or any losses/profits you may have!

Next Steps:

Successfully registering your LLC provides a legal framework for conducting your business activities. Aim to keep your LLC active and compliant by regularly checking state requirements. Note that Delaware does not require an annual report filing, but you may need to pay gross receipts tax and quarterly tax payments if you have employees and sell goods.

Visit Growth Business and find everything you need about company formation in America to expand worldwide!