How to Start an LLC

How to Start An L.L.C. In Delaware?

There are several advantages of starting an L.L.C. in Delaware. However, your organization has to follow a few guidelines. Let’s look at the steps involved in getting an L.L.C. in Delaware. 

  • Choose a unique name for incorporating your new Delaware L.L.C.

When deciding on the name of the L.L.C. in Delaware, remember to adhere to these two guidelines:

  1. The name of the L.L.C. to be incorporated in Delaware should be discernable from other business entities that already appear on the Delaware Division of Corporations file LLC in Delaware.
  2. The name of the L.L.C. must consist of the term “Limited Liability Company” as a suffix. Or, it can include one of these abbreviations: L.L.C. or L.L.C.

Book the name of your L.L.C. with the state’s secretary

Once you’ve decided upon your L.L.C.’s name, you can get it finalized by the Delaware Division of Corporations. To ensure the name you’ve finalized is available, you can browse through the Delaware Division of Corporation’s business name database.

 If your business’s name is free for use, you’ll be allowed to reserve it within 120 days on an online platform. You need to pay a fee of up to $75. 

Appoint a registered agent

Almost all states in the U.S. require you to appoint a qualified registered agent’s service at all stages of L.L.C. formation in Delaware. The registered agent will be responsible for handling all legal documents related to federal and state along with the processes on behalf of you. 

The registered agent should reside in Delaware or should be a business entity located in Delaware. Suppose you want any assistance when looking for a registered agent in Delaware. In that case, you can go through the name of registered agents available on the Delaware Division of Corporation’s page. 

Filing a certificate of Formation 

Once you’ve reserved a name for your L.L.C. online and appointed a registered agent, you’ll have to incorporate an L.L.C. The procedure requires you to file a Certificate of Formation as per the terms of conditions of the Delaware Division of Corporations. You can file the certificate through postal mail or fax. The cost of filing is $90. 

The Certificate of Formation should include the details given below:

  • Name of the L.L.C.
  • Address of the L.L.C.
  • Name and address of the registered agent
  • Signature of the L.L.C.’s organizers
  • Drafting operating agreement

This step is not a legal requisite or a mandatory effort required during the Formation of an L.L.C. within Delaware. However, it is highly recommendable for limited liability companies to draft a complete L.L.C. operating agreement. 

The draft of the certain operating agreements must showcase the following:

  1. Explain the overall business structure of the L.L.C.
  2. Mention the obligations and responsibilities of all the L.L.C. members
  3. Data related to the future operation of the L.L.C.

In the absence of an operating agreement, distinguishing the duties of an L.L.C.’s staff members becomes challenging. As a result, it can pose operation and legal challenges for the L.L.C.s. 

Acquire an E.I.N. or I.R.S. Employer Identification Number

An Employer Identification Number or E.I.N. gets issued by the Internal Revenue Service is mandatory for all the new L.L.C.s located in the United States. The E.I.N. is a nine-digit number that resembles the social security number for businesses. Besides, the number plays an essential role when it comes to opening business bank accounts, filing tax returns, paying income tax, or carrying out other vital functions. 

You can visit the I.R.S. website to acquire an E.I.N. online- free of cost. You won’t have to pay any filing fee. Upon the registration of your L.L.C., you must ensure the members are highly dedicated when it comes to complying with the legal requirements. 

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