Faculty Start-ups

Forming a Limited Liability Company in Delaware

It’s simple to incorporate an LLC1 in Delaware. Below are a few simple steps to get you started:

Each hyperlinked item will open a new tab to the specific form(s) you’ll need to complete.

1) Reserve Business Name

2) Identify Registered Agent: Delaware requires all businesses to have a Registered Agent. Businesses physically located in DE can serve as their own Registered Agent–just document that on the Certificate of Formation. If you not have a Delaware business office, find a Registered Agent. They’ll charge an annual fee.

3) Choose an entity type and file a Certificate of Formation and Required Cover Sheet

  • Sample Filing Memo for first-time filers located in right-hand margin of this page →

4) Obtain Employer Identification Number from the IRS

5) Register Your Business with Delaware’s One Stop Business Registration and Licensing System to register with Division of Revenue, Division of Unemployment Insurance, and Office of Workers Compensation: https://onestop.delaware.gov/osbrlpublic/

1 This information is not legal advice. Please note there are other business entity types you can choose from. An LLC might not be the most appropriate choice for your organization. It is recommended you consult with a professional accountant or lawyer first to determine the entity that best satisfies the needs of the organization. Review a comparison of different entity formation types

6) Newark-based businesses City of Newark License Application from the Newark Finance Department

Additional Considerations:

  • Do you require other Delaware or Federal licenses, certifications or registrations? Varies by industry.
  • Delaware LLCs are required to pay an annual entity tax of $300. Payment is due by June 1 every year. Pay online here
  • Open a business bank account (EIN and Certificate of Incorporation often required for this)
  • If you are forming a multi-member LLC you’ll want to establish an Operating Agreement (Operating Agreements are encouraged for single-member LLCs as well, but not required). You’ll want to consult a lawyer to create your LLC Operating Agreement
  • Talk to a lawyer or accountant before deciding on an entity type, and think strategically. Will you ever want to pursue investor capital? If so, an LLC might not be the best option for you. Investors often prefer to invest in corporations. Again, consult your business plan, lawyer, and accountant before making this decision. Here is a helpful guide as you consider the different types of entity types

Applying for SBIR/STTR Funding? 

Questions?

Contact the Delaware Small Business Development Center:

Daniel Eliot
Manager, Technology Business Development
deliot@udel.edu
302-831-0778

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