establishing an llc in delaware [Expert Answers]

Last updated : Sept 29, 2022

How much does it cost to get an LLC in Delaware?

The cost to start an LLC (limited liability company) online in Delaware is $90. This fee is paid to the Delaware Department of State when filing the LLC's Certificate of Formation.

Is there an advantage to forming an LLC in Delaware?

Delaware is often considered one of the best states to form an LLC because it has limited fees and tax obligations. In fact, many businesses choose to form an LLC in Delaware even if they don't intend on doing business in Delaware.

What do you need to start an LLC in Delaware?

Delaware requires you to file a certificate of formation, commonly referred to as “articles of organization.” With a filing fee of $90, this certification must contain the following information: Your LLC's name. The registered agent's name and address. Name and signature of the authorized person completing the form.

Can anyone start an LLC in Delaware?

Starting an LLC in Delaware is Easy. To form a Delaware LLC you'll need to file a Certificate of Formation with the Delaware Department of State, which costs $90. You can apply online or by mail. The Certificate of Formation is the legal document that officially creates your Delaware limited liability company.

Do Delaware LLCs pay income tax?

Delaware treats a single-member “disregarded entity” as a sole proprietorship for tax purposes. This means that the LLC itself does not pay taxes and does not have to file a return with the State of Delaware.

Why is Delaware a tax haven?

What makes Delaware a tax haven? Companies and wealthy individuals can use Delaware to avoid paying some taxes in other states. So there's a thing called the Delaware Loophole, which essentially enables companies to avoid paying state corporate income tax where they earn the revenue.

Why does everyone incorporate in Delaware?

The most famous reason Delaware has attracted the eye of corporations across the world is the lenient taxes imposed by the state. Corporations registered in Delaware that do not do business in the state do not pay corporate income tax.

How long does it take to get an LLC in De?

Expedited Processing Time to process your corporation or LLC formation varies by state with routine processing taking 4 - 6 weeks or even more in the slowest states. Expedited Processing will reduce that time to about 10 business days or less with the exception of just a few states.

Why do startups incorporate in Delaware?

Angel investors and venture capital firms generally prefer Delaware corporations. The main reason to choose Delaware is for its predictable laws that protect investors. Accordingly, legal professionals and capital investors have always been comfortable with the Delaware laws and procedures governing these entities.

Do you have to live in Delaware to form an LLC there?

As long as you retain the services of a Delaware Registered Agent, you can form a Delaware corporation, LLC, LP, benefit company or non-profit corporation without being a resident of Delaware or the United States.

Are Delaware LLC anonymous?

Enter: Delaware. Under Delaware law, members can form an LLC without having to place their name on any public documents—eliminating the paper trail. But while many believe Delaware offers this same comprehensive anonymity to corporations, this is actually not the case.

What are the benefits of registering a business in Delaware?

• Delaware business law offers flexibility.
• Court of Chancery.
• Delaware business tax benefits.
• Corporate statutes are more flexible.
• Investors prefer Delaware corporations.
• Foreign qualification costs.
• Registered agent costs.
• Franchise taxes.

How much does a registered agent in Delaware cost?

Delaware Registered Agent Services Delaware Registered Agent Service Companies specialize in receiving Service of Process (legal mail) on behalf of your Delaware LLC. Most Registered Agent Services in Delaware cost between $100 and $300 per year.

Do I need a Delaware address to incorporate in Delaware?

Owners of a newly-incorporated business often wonder if they need a Delaware business address. No, you do not need to have a business address or office in Delaware. All businesses incorporated in Delaware require a Registered Agent with a physical street address in Delaware, such as Agents and Corporations (IncNow).

Can I form an LLC in Delaware if I live in NY?

Under this Scenario a New York based business will be a Delaware LLC: Setup: It is very easy to form an LLC in Delaware. All one must do is file a Certificate of Formation with the State and include the $90 filing fee. That is it!

What is the best state to open a LLC?

1. Delaware. Delaware has a longstanding reputation for being one of the most business-friendly states in the nation.
2. Nevada. Nevada is another state that draws a lot of attention from business owners who want to avoid paying high taxes.
3. Wyoming.
4. Alaska.
5. South Dakota.

Does a Delaware LLC need to file a federal tax return?

An LLC will typically be required to file the same federal tax forms as a partnership or sole proprietorship when it comes time to prepare and file the federal tax returns with the IRS. An LLC may elect to be treated and taxed as an S corporation or a C corporation by the IRS.

Can IRS come after an LLC for personal taxes?

While the IRS can't levy your business account for your personal back taxes, the IRS can freeze and seize your company's assets to satisfy your tax debt if your business has a sizable tax liability. In most cases, for the IRS to implement a levy, your business must have: A substantial amount in back taxes.

What is not taxed in Delaware?

The state has no value-added taxes (VATs), it does not tax business transactions, and it does not have use, inventory or unitary tax. There is no inheritance tax in Delaware, and there are no capital shares or stock transfer taxes.

Why is Amazon registered in Delaware?

Amazon.com was incorporated in 1994 in the state of Washington, reincorporated in May of 1996 in Delaware, and went public in May of 1997. The main reason for popularity of Delaware incorporate comes from the fact that Delaware is definitely far superior to California as a state of incorporation.

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Thanks for your comment Lucia Carles, have a nice day.
- Karmen Owens, Staff Member

hi this is the business guy with asset protection planners and today we're going to talk about the benefits of establishing a delaware limited liability company that's a delaware llc i've been establishing company since 1991 and when i was doing some research for this video something really popped out to me from the articles that i read almost all of the articles were just people repeating what they had heard other people say and not only that but much of the information was wrong it's like people were playing telephone with the facts and not really doing their research or they talked about federal tax or other benefits that apply to llc's in all 50 states and not just delaware so now we have full-time licensed attorneys on our staff here and as a result we have to hold ourselves to a higher standard so the purpose of this video is to give you the most well-researched and fact-checked information about the delaware llc on the internet i'll throw in some comparisons with other jurisdictions and when you're done watching this video you'll know whether or not forming a delaware llc is right for you and if you do there's a coupon code and a link below for a limited time only the business guy has arranged 25 off an llc in delaware or any other state or country with coupon code bg25 so write that down bg25 and you can also check it out below in the description and by the way this video really took a lot of work to research so if you could help me out by just obliterating the like button below so youtube promotes the video i'd really appreciate it and you can also text a link of this video to others who need it and you can also click the subscribe button so that when more videos come out like this you'll get notified so benefit number one for the delaware llc single member llc charging order protection what does that mean well in our context here a lawsuit can come from one of two places one your personal life or two from your business life now you take yourself wherever you go right so you're a walking liability machine wherever you go you could get distracted for just a second and rear end somebody in your car we have countless clients calling who get sued for way more than their insurance coverage one guy just got out of the emergency room he had nobody to drive him home he had taken a pain pill while he was there got into a wreck on the way home insurance company totally denied coverage because they claimed he was driving under the influence of intoxicants and that was just from a pain pill that they gave him at the hospital the insurance companies love to take your money but they run like cockroaches with the lights on when it's time to pay if they can find a way out of paying they will plus you glance down at your cell phone for half a second hit somebody and get sued for 10 times the limits of your insurance coverage happens every day now the laws of many states have charging order protection that means when somebody sues you in a personal lawsuit not suing your business but you personally such as a car wreck there are provisions in the law such that the lawsuit cannot take your company away from you nor can they take anything inside of that company away from you so let's say you have a fleet of business vehicles or you have cash in a bank account you have a separate llc where you hold your entire stock market portfolio the charging order protection protects your company and anything inside of it from being taken away from you now a charging order means that whatever profit you would distribute to yourself would go to the creditor but your creditor cannot force you to pay yourself from the llc so your profits can pile up inside or you can do other tricks like having the llc hire a third party who in turn pays you for other services so there are little tricks to getting your money out but your opponent cannot force your hand now in 45 states you need to have a two-person llc to enjoy that charging order protection but in section 18-703-d of the delaware code it says and this benefit is offered and i quote whether the limited liability company has one member or more than one member end quote that's what delaware law says specifically again delaware is one of only five states to offer charging order protection for single member llcs now as an aside if you want to buy an llc where the charging order automatically disappears in three years instead of 20 years like charging orders due in the u.s call us and have us set up an offshore llc in the caribbean island of nevis that's in nevis go ahead and call us for details so charging order protection is benefit number one for a delaware llc protection for the llc against personal lawsuits now what about when somebody sues the llc itself benefit number two delaware llcs offer liability protection to members and managers one of the biggest benefits that a properly established delaware llc offers is protection against business lawsuits so when you own a business structured as a delaware llc and it's set up correctly even if someone does get a judgment against your company the lawsuit doesn't jump over into your personal life and take away your personal residence your car your bank account and everything you work so hard for delaware code section 18-303-a clearly indicates that the debts obligations and liabilities of a limited liability company shall be solely that of the limited liability company and no member or manager shall be obligated personally for any such debt obligation or liability solely by reason of being a member or acting as a manager so a delaware llc protects both the members that is the owner or owners and the managers the ones who run the llc from lawsuits against the business and again you enjoy that benefit even if it's a single member llc where you are the only member slash owner and the only manager now keep in mind that we can form an llc in delaware just like mcdonald's is a delaware corporation then we can register it so that it can do business in any of the 49 other states so you can use a delaware llc anywhere you live in the u.s or any other country for that matter we just need to do the proper filings for you benefit number three is privacy now in many states when we form llcs we need to list the manager's names and addresses on the document that we file with the state to form the company so that makes the information public so anybody can look it up online or order documents from the state to find out what you own not delaware delaware doesn't require your name and address to be listed on the formation documents for everybody to see all we need to put on the document is your llc name our company name when we serve as your delaware registered agent and other verbiage that we insert to create your llc on top of that we don't even need to file the name of the manager of your delaware llc with the annual renewal like we have to do in so many other states so privacy number four updated laws according to the delaware division of corporations over 1 million businesses including 66 of the fortune 500 that is fortune magazine's list of the 500 largest u.s corporations by to

Thanks alkonyat6 your participation is very much appreciated
- Karmen Owens

About the author

Karmen Owens

I've studied waste management at Lamar University in Beaumont and I am an expert in collection management. I usually feel satisfied. My previous job was physician's office nurse I held this position for 26 years, I love talking about medical science and handball. Huge fan of Meat Loaf I practice snowshoeing and collect petroliana.