What is a limited liability company?
A limited liability company is a legal organization structure of your business. It allows you to identify your business as a different person than yourself, which permits you to limit your personal liability. This means that you won’t lose your personal assets in case your company goes bankrupt.
Why form a company in Delaware?
Creating your own corporation can be difficult. However, Delaware makes it easy for you.
State Statute keep the location at the cutting edge of business law. The Delaware courts, resolve business disputes with efficient expertise. A well-developed body of case law provides legal certainty for business owners. There is also an important benefit, as Delaware LLC’s provide liability protection for owners. Also, Federal tax laws provide flexibility and other compensations for companies.
- Flexible Management Structure
- Privacy and security
- Businesses can form series of LLC’s
How to start a LLC in Delaware?
As we agreed, forming a company in Delaware can have a lot of benefits Be aware of the fees and note you won’t need to use a registered agent service, only if you already have a physical business location. Otherwise, you will need to pay a yearly rate of $50. Refer to the fee’s list in the next section.
Steps to form your Limited Liability Company ( LLC )
- Check Entity name availability at the Official Website.
- Sign Up for a Registered Agent.
- Fill and sign the following document: Certificate of Formation.
- Upload your document and payment details at eCorp Business Services: ”Document Upload”.
- Apply for your Employer Identification Number ( EIN ). Need help? Hire us!
- Fill form SS-4 and send to the Internal Revenue Service ( IRS ).
Legal Fees from forming your business
- Name Reservation – $75 (Optional).
- Filling fee – $90 (Mandatory).
- Priority Processing – Up to +$100 (Optional).
- Flat tax rate yearly – $300 (Mandatory).
- Registered agent address yearly – $50 (Mandatory).
Lastly, you will need to open a Bank account and prepare an Operating Agreement which will establish the main policy, owners and other stuff for your company. You will need this in case your business has to go to court. We recommend every business owner to do this important step.
Depending on your business activities, the State will need to approve your actions by transferring a licence to you. So, never forget to get your permissions with the authorities.
If you’re new to this and don’t want to deal with the stress of forming your company, hire us and we will do the job for you!