Hey there! If you’re thinking about starting a business in Delaware, you’re in good company. Delaware is like the rockstar of states when it comes to forming LLCs—over a million businesses call it home because of its business-friendly vibe. But why all the hype?
Well, from what I’ve gathered by digging into reviews and experiences online, people love it for the privacy, flexible laws, and that fancy court system that handles business disputes like pros.
On the flip side, some folks complain about the extra fees if you’re not actually operating in Delaware. Don’t worry, though—I’m here to walk you through it all in a chill, conversational way. We’ll cover the steps, what happens after, and sprinkle in real insights from people who’ve done it. By the end, you’ll feel like you’ve got this. Let’s dive in!
Here are the steps to forming an LLC in Delaware
Starting an LLC in Delaware isn’t rocket science, but it does take some planning. Based on official guides from the Delaware Division of Corporations and tons of user reviews on sites like Reddit and business blogs, the process usually takes a few days to a week if you do it right. People often say it’s straightforward, especially if you use online tools, but watch out for those hidden costs like annual taxes. Here’s the breakdown, step by step.
1. Search your LLC Name
First things first: Pick a name that’s unique and screams “you.” Your LLC name has to end with something like “Limited Liability Company,” “LLC,” or “L.L.C.” to make it official. Head over to the Delaware Division of Corporations website and use their free entity search tool to check if your dream name is available. It’s super easy—just type it in and see what pops up.
Why bother? Well, if someone’s already using it, you’ll get rejected, and nobody wants that headache. From what I’ve seen in reviews, like on Reddit where entrepreneurs share their stories, a lot of people skip this and end up wasting time refiling.reddit.com One guy said he had to change his name three times because he didn’t check first—talk about frustrating!
Pro tip: If you’re not ready to file yet, reserve the name for 120 days for $75. It’s optional but smart if you’re dragging your feet. And remember, your name can’t be too similar to existing ones or use restricted words like “bank” without permission. Keep it simple and memorable—think about your brand!
2. Choose a Delaware Registered Agent
Okay, this one’s important. Every Delaware LLC needs a registered agent—basically, a person or company in Delaware who’s responsible for receiving legal papers, like lawsuits or tax notices, on your behalf. They have to have a physical address in the state (no P.O. boxes) and be available during business hours.
Who can be an LLC Registered Agent?
You can be your own agent if you live in Delaware, or pick a friend, family member, or even your business itself if it’s located there. But if you’re out-of-state (which most people are), you’ll need to hire a professional service. Reviews show that going pro is way less stressful—imagine getting served papers at your home address? No thanks!
From online chatter, non-residents love this setup because Delaware doesn’t require you to list your personal info publicly, keeping things private.doola.com But beware: If your agent flakes, your LLC could get dissolved. Pick someone reliable.
We recommend Northwest Registered Agent
Hands down, Northwest Registered Agent gets rave reviews for Delaware LLCs. They’re all about privacy— they use their own address for your public records so your home stays off the books. Plus, they throw in extras like a free business email, phone line, and even a website domain. Their starting price is around $39/year for the agent service, which is a steal compared to others.
Why them? User experiences on sites like Trustpilot and business forums highlight their top-notch customer support and easy online dashboard.northwestregisteredagent.com One Reddit user said, “Northwest made the whole process painless—I didn’t have to worry about compliance alerts.”reddit.com They’ve been around forever and handle everything from scanning your mail to reminding you of deadlines. If you’re new to this, they’re a solid pick to avoid rookie mistakes.
3. File Delaware Certificate of Formation
This is the big one—the document that officially births your LLC. It’s called the Certificate of Formation, and you file it with the Delaware Division of Corporations. You can do it online, by mail, or fax, but online is fastest.
What to include? Not much: Your LLC name, registered agent’s info, and maybe some basics about management. No need to list members or owners publicly—that’s a big privacy win, as per reviews.corp.delaware.gov The filing fee is $90 if you do it yourself, but add $50 for expedited (same-day) processing if you’re in a rush.
From what people say online, approval happens quick—often within 24 hours if expedited.llcuniversity.com But double-check everything; one X post mentioned a typo that delayed things by a week.@StacheAutonomy If you’re using a service like Northwest, they can handle this for you for an extra fee.
4. Create an LLC Operating Agreement
Delaware doesn’t make you file this, but trust me, you want one. It’s like a rulebook for your LLC—outlining how decisions are made, profit sharing, what happens if someone leaves, and more. It’s internal, so keep it with your records.
Why bother? Reviews from small business owners stress that without it, disputes can tank your business.llcuniversity.com One entrepreneur on Reddit shared how their operating agreement saved them during a partner fallout.reddit.com You can grab free templates online or hire a lawyer for a custom one (around $200-$500). Even for solo LLCs, it’s smart for banks or loans.
Make it detailed but flexible—Delaware laws are super lenient here, which is why people love forming there.
5. Get an EIN for your LLC
An EIN is like a Social Security number for your business. You need it for taxes, banking, hiring employees—pretty much everything. If you’re a single-member LLC without employees, you might skip it, but most folks get one anyway.
How can I get an EIN?
Super easy: Apply online through the IRS website for free. It takes minutes if your principal business is in the U.S.irs.gov You’ll need your LLC’s formation docs ready. Do it after your Certificate is approved to avoid issues.
From user experiences, non-U.S. residents can apply too, but might need to fax or mail.northwestregisteredagent.com One international founder on Reddit said it unlocked Stripe payments for them.reddit.com Pro tip: Print your confirmation letter right away—it’s your proof.
6. Delaware business licenses and permits
Delaware keeps it simple, but you need a state business license from the Division of Revenue. It costs $75 for most, but varies by your industry (e.g., restaurants pay more). Apply online after your LLC is formed.
Check for local permits too—if you’re in Wilmington, you might need city licenses. And if your business involves food, health, or environment, federal or state permits apply. Reviews warn that skipping this can lead to fines; one small biz owner got hit with a $500 penalty for forgetting.reddit.com
If you’re out-of-state, you might not need much unless operating in DE. Always search OneStop Delaware for specifics.
What do I do after my LLC is approved?
Congrats! Your LLC is live. But the fun doesn’t stop—now it’s maintenance time. Based on pros and cons from reviews, this is where Delaware shines for privacy but bites with fees.reddit.com Open a business bank account (bring your EIN and formation docs), set up accounting, and maybe get insurance. If you’re selling stuff, register for sales tax.
Don’t forget Beneficial Ownership reporting to FinCEN if applicable—new in 2024.corp.delaware.gov And plan for growth: Many reviewers say Delaware makes it easy to attract investors later.
How much does a Delaware Annual Franchise Tax Report cost?
It’s $300 flat for LLCs—no matter your size. That’s the “franchise tax,” not based on income. Pay it online or by mail. Some call it steep for small ops, but others say it’s worth the perks.llcuniversity.com
When is the Annual Franchise Tax Report due?
June 1 every year. Late? Add $200 penalty plus 1.5% monthly interest. Set a reminder—reviews are full of “I forgot and paid extra” stories.
When is my first Annual Franchise Tax Report due?
If you formed before January 1, 2025, it’s due June 1, 2025. After that, next June 1. No prorating, so even late-year formations pay full. One Reddit user griped about paying $300 right after starting.reddit.com
How do I file my LLC Annual Franchise Tax Report?
Online via the Division of Corporations portal—easiest way. Or mail a check. No big report needed; just pay the tax. Services like Northwest can remind you or file for a fee.
How will my LLC be taxed?
LLCs are pass-through entities, so profits flow to your personal taxes—no double taxation like corps. Delaware has no state income tax if you don’t operate there, a huge pro for out-of-staters.nerdwallet.com But if you do business in DE, expect 8.7% on income over $60K. You can elect S-corp or C-corp status for different tax vibes—chat with a CPA.
Reviews mixed: Great for privacy and flexibility, but if you’re small and local, your home state might be cheaper.legalzoom.com One founder saved on taxes but paid more in fees.anomalycpa.com
Wrapping up, starting an LLC in Delaware is a smart move for many, especially if privacy and investor appeal matter. Total startup costs? Around $200-$500 DIY, more with help
