Are you an entrepreneur who wants to establish a business presence in the state of Delaware? If so, a limited liability company (LLC) is one of the most popular business entities. Even if it is not difficult to form an LLC in Delaware, it is essential for you to be aware of the costs involved with registering the business there. Knowing how much it will cost to
form an LLC in Delaware can help you plan, analyze your company’s financial status, and choose better ways to manage your finances so that you can prosper in the state’s economy.
In this article, we will provide you with brief insights regarding the cost of starting an LLC in Delaware. This article will also cover all fees required.
Fee for forming a Delaware LLC
To establish an LLC in Delaware, it is necessary to file a Certificate of Formation with the Delaware Division of Corporations. You must also pay a $90 charge when you’re doing so. It’s the first fee for forming an LLC in Delaware. However, for a certified copy of your Certificate of Formation, there’s an extra fee of $50. By paying this additional amount, your paperwork will be processed by the state within 24 hours of receiving it. Alternatively, if you require immediate processing, you can pay an extra $100, and the state will handle your paperwork on the same day.
How much does it cost to register a foreign LLC in Delaware?
The cost of registering a foreign LLC in Delaware amounts to $200. If an LLC was established in a different state or jurisdiction but aims to operate in Delaware, it must undergo foreign LLC registration. This involves submitting a Certificate of Registration of a Foreign LLC. Alongside this, obtaining a Delaware business license is necessary, and additional professional or local licenses might be required too.
Franchise Tax in Delaware
LLCs in Delaware are required to pay a $300 franchise tax every year. While you are not required to submit it right away, it is a cost to consider. It is payable on June 1st each year and may be paid online. If you fail to file by the specified date of June 1, Delaware assesses a fine of $200 plus 1.5% interest each month.
Charge associated with recruiting Delaware Registered Agent
A registered agent is a person or a firm designated to accept legal communications, including service of legal documents, on your behalf. Your registered agent needs to maintain a physical address in Delaware and be accessible during regular business hours. This address will also be made publicly available. Given the inconvenience and privacy concerns, many people opt to enlist a professional registered agent to handle this responsibility for their business.
The expense associated with hiring a registered agent in Delaware can differ based on your choice, but Northwest offers this service at a consistent annual rate of $125 without any fee increases over time.
Professional Licensing Fees in Delaware
Certain occupations requiring specialized training or education, such as architects, physicians, therapists, and others, must obtain a professional license from the Delaware Division of Professional Regulation. The issuance of the license falls under the jurisdiction of the respective governing body overseeing each profession. The fee associated with obtaining a professional license varies depending on the specific occupation. For instance, a speech pathologist’s license carries a fee of $165, while a home inspector’s license requires a fee of $323.
Delaware Local Business License Fees
Apart from obtaining a state business license, your LLC may also require a local business license, the cost of which will vary based on:
- The nature of the services or work your LLC will be engaged in.
- The specific municipality you operate in.
Get in touch with the municipal government in your area to determine whether you need a local business license.
Other Delaware LLC Fees that you must consider
Name Reservation Fee
It is free to name your Limited Liability Company. When the state approves your Certificate of Formation file, your Delaware LLC Name is authorized (at no additional cost). But If you are nearly ready to establish your LLC, then you may reserve it for $75. This will keep your name reserved for up to 120 days.
Certified Business Document Copies
When your LLC expands, you may require certified copies of your business records. Each certified copy of your Certificate of Formation costs $50. The state charges $100 for same-day processing and $50 for 24-hour processing.
You have the option to register a DBA for your LLC in each Delaware county where you operate, but it’s not mandatory. Each application for a DBA comes with a $25 fee, which you can choose not to incur.
LLC EIN Number Fee
EIN Numbers can also be referred to as Employer Identification Numbers (EINs) or Federal Employer Identification Numbers (FEINs). This numerical identifier is utilized for purposes such as filing income taxes, establishing a bank account for your LLC, and, if needed, recruiting personnel. While numerous online platforms levy a service charge for acquiring an EIN for your LLC, it is feasible to acquire one without cost. The Internal Revenue Service (IRS) offers the option to obtain an EIN for your LLC without any charge.
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Starting an LLC in Delaware comes with a range of costs that should be carefully considered by prospective entrepreneurs. While the state offers several advantages, such as a favorable legal framework and business-friendly policies, the expenses associated with forming and maintaining an LLC can vary. Primary expenses encompass charges for submitting formation paperwork, fees for a registered agent, and yearly franchise taxes. Additional costs may arise from legal and professional services, depending on the complexity of the business structure and specific needs. It’s essential for individuals to thoroughly research and plan for these expenses, ensuring they align with their budget and long-term business goals. Entrepreneurs can make informed decisions about whether Delaware’s benefits align with their business goals by carefully evaluating the potential gains in comparison to the associated expenses.
At OnDemand International, we are dedicated to providing comprehensive support in meticulously analyzing the diverse expenses essential for the successful establishment of your LLC in Delaware. With our professional assistance, you can confidently navigate the complexities of cost assessment and make informed decisions that align with your business goals.
You may face fines and be unable to get a Certificate of Existence when you require one.
If you file online, you may have your Delaware LLC authorized in 10 business days.
Fees are determined by the type of business and the amount of documents necessary.
Yes, Delaware is an excellent place to establish a business. Delaware does not charge a state business licensing cost, provides short approval timeframes, and courteous Division of Corporations staff if you have issues.