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The Delaware LLC is a tool created to make incorporating easier and more affordable for individuals, sole proprietorships, and small businesses. It allows the owners to have full control over their business the same way corporations do.
But what are the Delaware LLC fees?
The cost of forming an LLC in this state will vary widely depending on the details and business needs.
This article uncovers the specific Cost of a Delaware LLC to help business owners create their companies.
Let's get started!
What is the Cost of a Delaware LLC?
Here are the Delaware LLC fees one needs to know about to be able to start an LLC in the state:
Delaware LLC Online Filing Fee
The Certificate of Formation for Delaware LLCs costs $90. This is the primary cost of starting an LLC in the state. Business owners can file this document online with the Delaware Department of State.
Delaware LLC Operating Agreement
Like most states, an LLC's Operating Agreement is not mandatory. However, the Delaware LLC will need one even if it is not legally required.
Individuals can create the Operating Agreement while filing the Certificate of Formation.
It is an important document that details the business's operation and shareholders' rights. It also helps with issues relating to conflict of interest and avoiding personal liability.
Delaware LLC annual fees
A $300.00 yearly tax is imposed on all domestic and foreign limited liability companies, limited partnerships, and general partnerships founded or registered in Delaware.
Taxes for the previous year in Delaware must be paid on or before June 1st.
There will be a $200 penalty and 1.5% interest per month if an LLC fails to pay the annual tax on or before the set date.
Business Permits and Licenses
The Delaware Division of Revenue requires any individual or organization operating a trade or business in Delaware to get a Delaware business license.
Depending on the location and industry, Delaware LLCs require various business permits and licenses to operate in the state legally.
For example, a business that sells alcohol to consumers must acquire a retail license from Alcoholic Beverage Control (ABC).
The kind of license determines the actual cost. For instance, selling beer or wine costs $500, selling liquor costs $1,000, and selling beer costs $2,000 for brewery bars.
Similarly, businesses that offer certain health care services are subject to regulation by the Delaware Division of Public Health.
Cost to Form a Foreign LLC in Delaware
Businesses initially registered in other states must file a Delaware Certificate of Registration of a Foreign Limited Liability Company with the state's Division of Corporations. The cost foreign LLC in Delaware is $200. This document may be submitted in person, by mail, or online.
Delaware Registered Agent Fees
Registered agents are key figures in forming an LLC in the United States. They must have a valid physical address and telephone access in the US.
This person or business will act on behalf of the organization and is required to keep records of the LLC's meeting minutes and any annual reports.
The registered agent will also be tasked with other duties, such as notifying owners of important information regarding the business, including lawsuits.
The registered agent will also receive official statements, notices, and other vital documents on behalf of Delaware-based companies.
The cost of an LLC's registered agent services depends on the type of registration but can run anywhere from $39 to $500 annually.
Some of the best Delaware registered agent services include Swyft Filings and Inc Authority.
Inc Authority is a reputable LLC registered agent service provider in the state. Their agents are trained to provide high-quality service and are available to assist customers in person and via email.
Kindly read the Inc Authority LLC Service Review for a broader view of the company.
Swyft Filings is also among the best-rated registered agent services in the country. It provides quality service to Delaware-based LLCs for as little as $49 a year.
Customers can thus rest easy knowing that professionals handled their company's registrar matters.
Employer Identification Number (EIN)
An EIN is a 9-digit number that any entity, including an LLC, must obtain. The EIN is used to identify the entity's tax payments and tax returns, and any business activities. An LLC can apply for an EIN from the IRS for free.
Delaware LLC Name Reservation
The LLC name may be registered as an "exact name" (the entity's legal name), a "DBA" (an abbreviation for a business entity that holds itself out to the public), or a "doing business as" (which brands the business using another company's name).
A business owner can reserve a name for as long as 120 days before filing for a Certificate of Formation.
This is called Application for Reservation of Limited Liability Company Name. The cost of a Delaware LLC name reservation is $ 75.
For the "Doing Business As" (DBA) name, the cost is $25.
Certificate of Good Standing
After the initial Delaware LLC registration, a business owner must file a Certificate of Good Standing every year. This document demonstrates that the LLC has a physical address in Delaware and qualifies to conduct business. The cost of filing a Certificate of Good Standing is $50.
Can a Delaware LLC be taxed as an S or C corp?
Yes, a Delaware LLC can be taxed either an S Corp or a C Corp. The LLC owners would need to submit IRS Form 2553 to be taxed as an S-Corporation.
Can I register my Delaware LLC in another state?
Yes, a company registered in Delaware may be registered as an LLC in another state. This is termed domestic registration.
How much does an LLC cost in Delaware?
The cost of forming and maintaining an LLC in Delaware depends on the industry, business needs, and company size.
An LLC offers many benefits for its owners, including limited liability, tax transparency, and asset protection. The Delaware LLC cost is relatively low compared to some other states.
When forming an LLC in Delaware, hiring a reliable LLC formation service is vital. The best ones in the state include Swyft Filings and Inc Authority. Both offer excellent customer service at affordable prices and have some of the highest ratings online for Delaware registered agents.
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