How to Start a Delaware LLC(Step-
by-Step) 2025 Guide
CONTENTS
Being an entrepreneur isn’t as simple as snapping your fingers and instantly getting set up. There are several business structures available, and many people choose to form a limited liability company (LLC) for the extra protection it offers.
If you want to start a Delaware LLC, then there are six specific steps you have to take, with a seventh that’s usually necessary too. Below, we’ll go into the process in detail if you want to try and do this on your own. Otherwise, take advantage of our free business registration process for an affordable and painless route.
1. Do an LLC Name Search
The first step is doing a Delaware LLC name search. Due to legal issues, you need to choose a name that’s truly unique, and it can’t be too similar to another company’s name in the state either. In addition, it has to contain the words “LLC, “Limited Liability Company,” or similar forms (such as “L.L.C.”).
You can do a thorough search by using the website for Delaware’s Division of Corporations. You’ll be able to browse through their records.
However, there are other ways to do Delaware LLC name searches. Read more about how to do Delaware business entity searches in our guide.
2. Choose Your Registered Agent
By law, you must have a Delaware registered agent when you form an LLC. This is the person or entity who’s responsible for receiving your company’s legal mail.
There are three choices available to you for choosing your registered agent:
- Yourself
- A family member or friend
- A professional company
While it’s possible to name yourself as the registered agent for your LLC, we don’t recommend doing so. Since you must have a physical address in Delaware and you can’t use PO Boxes, this means you’d have to list your personal address, which can lead to privacy concerns. Also, you must always be available during business hours to receive your LLC’s mail, which can feel restricting.
Instead, use Business Anywhere’s registered agent service. It’ll cost as low as $147 per year, so it won’t be a huge dent in your budget.
For more information about the Delaware registered agent process, read our guide.
3. File a Certificate of Formation
You’ll have to file a Delaware certificate of formation to officially start your LLC. You’ll do this through the Delaware Division of Corporations (the same place where you did your business name search).
The filing fee is $110 and you can get a certified copy for an extra $50. The form isn’t too difficult to fill out, but you can always have Business Anywhere handle it so you have one less thing to worry about.
To learn more about filing a Delaware certificate of formation, check out our guide.
4. Write an Operating Agreement
The Delaware operating agreement is a document that shows how your LLC will be run, including in cases of legal disputes. This can come in handy if you ever have to go to court.
The state of Delaware requires you to formally write and file an operating agreement to form your LLC. Even if you’re located in a state that doesn’t require this, it’s still a smart idea to have one for legal reasons. In addition, some banks may want to see this paper when you try and open a business bank account.
See our guide to find out more about writing a Delaware operating agreement.
5. Request an EIN
“EIN” stands for “employer identification number” and is a federal tax ID number for your Delaware LLC. It’s similar to a Social Security Number (SSN) for individuals.
If you’re not hiring employees, then it’s not necessary to get an EIN. However, you’ll need one to do things like open a business bank account and apply for licenses and permits, so it’s best to get this done beforehand. It won’t cost anything either.
Here’s our guide to requesting a Delaware EIN if you want to learn more.
6. Get a Business License
The Delaware Division of Revenue requires that all businesses (including LLCs) obtain a general business license from them to operate legally.
But that’s not all. It’s very likely that you’ll need additional licenses and permits, depending on where you’re operating and what industry you’re in.
To find out what you need to do, check out our guide on Delaware business licenses.
7. Get a Certificate of Good Standing
You won’t need a Delaware certificate of good standing to start your LLC. But it can save you a lot of trouble in the future if you learn how to request one now.
A certificate of good standing proves that your business is in good standing, which means that you’re up-to-date on all reports, taxes, and fees. The Delaware Division of Corporations is responsible for these and having one can help with:
- Opening a business bank account
- Business transactions
- Licensing and permits
- Renewals and compliance
- Contracts and bids
- Foreign qualification
Check out our guide on getting a Delaware certificate of good standing to learn more.
Delaware LLC FAQs
You might have some additional questions about starting a Delaware LLC, even after reading this page. Here are some of the most frequently asked questions and their answers.
Why should I form an LLC in Delaware?
Delaware is a popular choice for LLC formation due to its business-friendly laws, strong legal protections, and lack of state sales tax. Many businesses also appreciate Delaware’s Court of Chancery, which specializes in business disputes.
Do I need to live in Delaware to form an LLC there?
No, you do not need to be a resident of Delaware to form an LLC there. Many out-of-state and international businesses choose Delaware due to its favorable legal environment.
How long does it take to form an LLC in Delaware?
Processing times vary, but standard filing typically takes up to 10 business days. Expedited processing is available for an additional fee.
What taxes does a Delaware LLC have to pay?
- Annual franchise tax: Delaware LLCs must pay a flat annual tax of $300, due by June 1 each year.
- Federal taxes: LLCs are pass-through entities by default, meaning profits and losses flow to individual members' tax returns.
- State income tax: If your LLC operates in Delaware, you may be subject to Delaware state taxes. If it operates elsewhere, you will likely pay taxes in that state.
Can I operate my Delaware LLC in another state?
Yes, you can. But if you conduct business in another state, you may need to register as a foreign LLC in that state and comply with its business regulations.
How do I maintain my Delaware LLC?
To keep your Delaware LLC in good standing, you must:
- Pay the $300 annual franchise tax by June 1
- Maintain a registered agent in Delaware
- File any necessary tax returns and renew business licenses as required
Step-by-Step Guide to
Forming a Delaware LLC
Delaware LLC Starter Guide
A step-by-step guide to forming an LLC in Delaware, covering all legal and operational requirements.
1. Delaware Name Search
Learn how to check the availability of your desired LLC name and ensure compliance with Delaware naming rules.
3. Delaware Certificate of Formation
Find out how to file the Certificate of Formation, the official document that establishes your LLC.
4. Delaware Operating Agreement
Discover why an Operating Agreement is crucial for defining the structure and management of your LLC.
