Forming a Delaware LLC is almost as simple as creating a social media account. While there are a few required steps, the process is straightforward and can be completed quickly.
Step 1: Choose a Unique Company Name
Your first task is to select a unique name for your LLC. This name must be registered with the Delaware Division of Corporations. You can check the availability of your chosen name online and reserve it to prevent others from taking it before you complete your formation. However, reserving a name usually costs the same as forming the company itself, so we recommend skipping this step and proceeding directly with incorporation.
Step 2: Complete the Application
The next step is filling out the application form provided by the Delaware Division of Corporations. To save time and ensure accuracy, you can hire us to handle your company formation documents and submit them to the state on your behalf for a quick turnaround.
Step 3: Draft an Operating Agreement
An Operating Agreement outlines the rules and procedures for managing your LLC. You can amend this document at any time, so while you can start with a basic template, it’s beneficial to fully understand your business’s needs from the beginning. We can assist you in drafting an Operating Agreement that best serves your company’s interests.
Advantages of Delaware LLCs
Since Delaware introduced the Limited Liability Company (LLC) structure in 1993, millions of businesses have formed LLCs, making them the most popular type of entity in the state. Delaware’s business-friendly environment has attracted companies and investors from all over the world, and the majority of them choose to form LLCs for their flexibility and protection.
What is a Delaware LLC?
A Delaware LLC, or Limited Liability Company, is a business structure that provides its members with limited liability for the company’s financial obligations. This means that the personal assets of the LLC members are protected from the company’s liabilities. Unlike corporations, LLCs allow owners the freedom to determine roles and responsibilities through an Operating Agreement, without the rigid structure of a board of directors.
Key Advantages of a Delaware LLC
1. Flexibility
Delaware LLCs offer unmatched flexibility in how they are structured. Whether you are a solo entrepreneur, a family business, or a multi-member partnership, the Operating Agreement allows you to tailor the company’s rules and procedures to suit your needs.
2. Limited Personal Liability
LLC members are not personally responsible for the company’s financial obligations. In the event of business failure, the LLC is responsible for its debts, while the members’ personal assets remain protected.
3. Asset Protection from Creditors
The assets of the LLC are protected from any claims made against individual members. This means that even if a member faces legal action, their personal creditors cannot seize LLC assets.
4. Flexible Taxation
Delaware LLCs can choose to be taxed as a sole proprietorship, partnership, S corporation, or C corporation. This allows business owners to select the tax structure that best suits their situation, potentially reducing their tax burden.
5. Privacy
Delaware offers superior privacy protections for LLC owners. Members are not required to disclose personal information when forming the LLC, and changes to the Operating Agreement do not require additional filings, saving time and money.
6. Simplicity
Forming and maintaining a Delaware LLC is easy. With the help of an experienced team, the formation process can be completed in as little as one day. The ongoing maintenance only requires a Registered Agent and the annual payment of the Franchise Tax, which your Registered Agent can handle for you.
Get Started Today
Choose one of our services to start your Delaware LLC, and let us help you through the process with ease. For more information or assistance, feel free to contact us.
Pre-sales inquiries? Call us at +1 302 310 21 76 (WhatsApp available!).
