LLC Delaware

Why should I incorporate or form an LLC in Delaware?
Delaware is an easy and reliable state in which to incorporate or form LLCs, plus the annual cost is low. A few examples of Delaware’s benefits include:

Easy and Reliable
• Delaware law has been tested and provides predictability.
• Delaware regularly updates its laws to remain the leading state for incorporation.
• Delaware has a separate Court of Chancery that handles Corporation law cases quickly and competently.
• Delaware allows the owners and managers of an LLC to remain anonymous.

Annual Costs
• The Delaware Corporation minimum annual franchise tax is $75 and the filing fee is $25.
• The Delaware LLC annual fee is $250, regardless of capitalization.


What tax savings will I receive by incorporating in Delaware?
Delaware has no sales tax or intangible personal property tax. No Delaware income tax has to be paid and a business license is not required if the Corporation does not do business in Delaware.


How Long Does the Formation Process Take?
After completing the Incorporation Form, you will typically receive your formation documents via Priority Mail Delivery within 7-8 days.


Can one person form an LLC?
Yes, one person (U.S. or foreign) can incorporate a Corporation in Delaware. One person (U.S. or foreign) can also form an LLC in Delaware.


Can a foreign person or Corporation form a Delaware Corporation or LLC?
Yes, a foreign person or Corporation can form and be the owner of a Delaware LLC.


Can one person be an officer and director?
Yes, one person can also be the owner and managing member of an LLC.


Do I need a business address in Delaware?
No, you do not need to have a business address or office in Delaware. The business address will be at the location where you conduct your business.


Do I have to maintain an office or bank account in Delaware?
No, an office or bank account does not have to be maintained in Delaware.
An annual fee of $90 is paid to Agents and Corporations, Inc. to serve as the statutory Registered Agent and to receive and forward copies of legal actions filed against the Corporation. Annual meetings can be held at any place and minutes can be signed by consent without a meeting.


What is a registered agent?
A registered agent is a professional corporation that is responsible for receiving and forwarding official and legal documents to its client. Some examples of documents received and forwarded by registered agents are annual franchise tax reports from the Secretary of State and service of process (that is, lawsuits) against your company from private litigants.
Delaware law requires you to have a registered agent when your Delaware LLC is first formed and throughout the life of your Delaware company.


When do I pay franchise taxes?
The franchise tax imposed by the State of Delaware is a tax LLCs and corporations are charged merely for existing in that state. For LLCs, the tax is due by June 1 the year after your LLC is formed. You will receive notification and instructions for paying your franchise taxes from your registered agent service provider prior to these dates.