How to start an LLC in Delaware in 2024

A limited liability company (LLC) is a popular and flexible business structure with no limit to its number of members. LLCs are pass-through entities, meaning business taxes are paid through the owners (known as members) on their personal income tax returns. Also, as the name implies, this business structure protects its members’ liability by limiting their liability to their share of the entity. This guide walks you through how to start an LLC in Delaware. 

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7 steps to start an LLC in Delaware

1. Select a name 

Your LLC’s name must be unique from other business names registered within your business’s county or it will not be approved. As you think of a name, keep in mind that it must not include any of the following words or their abbreviations: 

• Association 
• Bank
• Club 
• Company 
• Corporation 
• Foundation 
• Fund
• Incorporated
• Institute 
• Limited
• Society
• Syndicate
• Union

Use the Division of Corporations’s Name Reservation tool to check if the LLC name you want is available. You can reserve your LLC name by submitting a $75 filing fee. To file, you must have your name and address in addition to the name you wish to reserve. 

Reserving your name is not a required step to starting your LLC. However, it will guarantee your desired name’s availability for 120 days until you incorporate your business, at which time you can designate your name in the formation process. 

2. Designate a registered agent

A registered agent is a person or company that receives official correspondence on your business’s behalf. You are required to designate one with a physical address in the state in which you operate your LLC. Its responsibilities extend beyond receiving official correspondence (such as legal and government notices) to forwarding those notices onto the responsible parties within your LLC who should address them. 

Your registered agent could be a third-party company, a local Delaware resident or the LLC itself (as long as it’s located within Delaware). If an individual, the requirements to act as a registered agent in Delaware include the following: 

• You must be at least 18 years of age. 
• You must be present at the listed registered agent address during all local business hours throughout the year. 

Hiring a registered agent can afford companies some advantages. These advantages include: 

• Privacy: A registered agent must publicly list the street address where correspondence will be received. Hiring a registered agent service protects you from having to publish your company’s physical address, which protects your privacy if you are an entrepreneur working from home. 
• Business reputation: By hiring a registered agent service, potentially embarrassing correspondence, including any notices your company is being sued, will be delivered to the registered agent address, not to your business in front of clients, customers or employees. 
• Flexibility: When you act as your own registered agent, you must not leave the office listed as your registered agent address during all local business hours throughout the year. Hiring a registered agent service frees you from this restriction so you can visit clients or travel as needed.

If you’d rather hire a registered agent service, here’s a list of the best registered agent services to help you.

3. Obtain a business license 

If you or your entity is conducting trade or business in Delaware or is located in Delaware but conducts business elsewhere, you must obtain a Delaware business license. The fee for filing for a business license varies by year but is generally $75 per location. 

You can apply for a license with the Delaware Division of Revenue online using its One Stop Business Licenses and Registration Service portal. You’ll receive a printable, temporary license after you apply online and a physical license in the mail within a month.

4. Obtain additional business licenses or permits as necessary

Some Delaware counties and cities may require extra licensing or permits, depending on the activities performed by your LLC. Examples of local licenses and permits you may need to obtain include: 

• Utility permits. 
• Zoning permits. 
• Rental licenses. 
• Construction permits. 

To learn the requirements for your business, reach out to your county, city or town to get a detailed description of the licenses you need. You can also visit the delaware.gov’s County, City and Town Licensing and Permits page and look for your location to gather details on licensing requirements. This page offers phone numbers for each location so you can learn requirement details. 

5. File your certificate of formation

To form your LLC in Delaware, you must file a certificate of formation, a short form that includes your business name and designates your registered agent. You must include your unique LLC name, the address and name of your registered agent and the signature and name of the authorized applicant. A $90 filing fee must also be paid at the time of submission. 

To submit your certificate of formation, print and fill out the Certificate of Formation of a Limited Liability Company form following the provided instructions. Make your check payable to the “Delaware Secretary of State” and include a cover letter with your name, address and phone number. Mail the completed form, cover letter and check to: 

Delaware Division of Corporations 

401 Federal Street — Suite 4

Dover, DE 19901

New LLC reporting requirement alert 

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a new reporting requirement for all non-exempt LLCs starting on January 1, 2024. 

The requirement is called the Beneficial Ownership Information (BOI) report and it is estimated to only take about 20 minutes to complete. 

Here’s what you need to know:

• LLCs formed before January 1, 2024 have until January 1, 2025 to file.
• LLCs formed between January 1, 2024 and January 1, 2025 have 90 days to file from the confirmed date of the businesses’ registration.
• New LLCs formed after January 1, 2025 will have 30 days to file from the confirmed date of formation.

For all details, FAQs and to file, visit FinCEN’s BOI website. 

6. Get an employer identification number (EIN)

An EIN is an identifying number, like a Social Security number for your business. It allows you to complete required tasks such as filing taxes, and necessary tasks such as opening an LLC bank account and hiring employees. To fill out the application, you need the name of the person who owns or controls the entity and their Social Security number. 

Obtaining an EIN is free and the process can be completed online using the IRS’s EIN Assistant. Before you begin, make sure you install Adobe Reader. Once you’ve completed and submitted the online form, you will receive an EIN immediately in the form of a confirmation notice you can print and keep on file.

7. Pay the annual tax

Limited liability companies within Delaware must pay a $300 annual tax. The fee is due on or before June 1 of every year for the prior year. If you don’t pay on time, a penalty of $200 and 1.5% of interest per month will incur on the tax and penalty. You can pay using a Visa, Mastercard, American Express or Discover debit or credit card.

Pay the tax by visiting the Delaware Corporation Information System DCIS – eCorp. Then, click “Search for your business by name” to first retrieve your seven digit Business Entity Filing Number, which is required for paying the fee. Finally, fill out the online form as prompted to pay your fee.

Cost to start an LLC in Delaware

Starting an LLC in Delaware comes with a one-time $90 filing fee. You also need to pay a franchise tax of $300 before June 1 of every year. Obtaining a business license from the Division of Revenue usually costs $75.

Other fees you may have to pay to start your Delaware LLC include: 

• A name reservation fee of $75. 
• A fee for hiring a registered agent, which can range from $0 to $300 per year, depending on the registered agent service provider and features offered. 

Find an LLC service for Delaware: Best LLC services 

Delaware requirements for LLCs

Requirements for starting an LLC in Delaware include choosing a unique name, designating a registered agent, obtaining a business license (and sometimes a county or local licenses), filing your certificate of formation, applying for an EIN and paying a $300 annual tax. LLCs in Delaware are not required to submit an annual report.

Resources for Delaware LLCs

Delaware offers several tools to help you start your LLC. These include a name search tool to ensure your chosen name’s availability and a list of registered agents within the state. Delaware’s One Stop portal provides business owners convenient access to registration and licensing tools. You can also pay the annual franchise tax online through a payment portal. 

Featured LLC service offers

ZenBusiness

Learn More

Via ZenBusiness’ website

Free version available

Yes

Lowest published package price

$199

Live chat

Yes: Human

LegalZoom

Learn More

Via LegalZoom’s website

Free version available

Yes

Lowest published package price

$249

Live chat

Yes

Northwest Registered Agent

Learn More

Via Northwest’s website

Free version available

No

Lowest published package price

$39

Live chat

Yes

Frequently asked questions (FAQs)