Incorporating in Delaware
How much does it incorporate in Delaware cost? The minimum fee is $89. This includes corporation fees ($50), filing fee tax (at least $15) and county fees ($24). For larger businesses or expedited filing, the costs increase. Delaware gives LLC owners more privacy. Unlike other states, Delaware does not require listing member or manager names in formation documents. The costs of a Delaware LLC are an investment in the business’s future. The initial and ongoing costs are small compared to the benefits and protections.
You need a Delaware business license to sell online. Check with your city or county for any other licenses. Incorporating in Delaware involves several steps. These include choosing a name, preparing a certificate of incorporation and appointing a registered agent, directors and issuing stock.
When forming a corporation in Delaware with MaxFilings, there’s no need to pay attorney fees. Most costs will be Delaware fees.
You can get a Delaware LLC approved in 10 days by filing online.
The key benefits of incorporating in Delaware are tax benefits, privacy, expediency, simplified structure, and experienced courts. However, incorporating in Delaware also has disadvantages. Most tax savings don’t apply to small businesses. Filing fees are higher than other states. Companies pay a Delaware franchise tax based on authorized shares. For most small businesses, it likely makes sense to file in your home state.
The consensus is that incorporating in Delaware only benefits large corporations, not small businesses. Exceptions may exist if you already operate in Delaware. Delaware’s business-friendly laws attract corporations. About 300,000 companies use a Wilmington office building as an incorporation address. 66% of Fortune 500 companies are incorporated in Delaware. The state has nearly a one-to-one ratio of corporations to residents. About 75% of Delaware companies are LLCs. Top lawyers know Delaware law well. Delaware permits efficient business transactions like mergers and transfers.
LLC Maintenance in Delaware
To revive a Delaware LLC, you just have to file a certificate of revival of Delaware limited liability company form. The form costs $169 and is in your online account at all times. You mail it into the Delaware Division of Corporations at 401 Federal Street, STE 4 Dover, DE 19901. You can fax this in as well. Start Your LLC Online With Nolo Today. Choose a Name for Your LLC. Under Delaware law, an LLC name must contain the words “Limited Liability Company” or the abbreviation “L.L.C.” or “LLC”. Appoint a Registered Agent. File a Certificate of Formation. Prepare an Operating Agreement.
Once you have your EIN, apart from filing sales tax, once the company has completed its 2.5 months as an LLC in Delaware, it needs to pay a Business Privilege Tax (BPT). This is a requirement for all LLCs formed in Delaware. LLCs need to pay the tax before 15 April, and it can vary from 0.00025% to 0.000175% according to the net worth of the LLC.
That said, it’s important to note that these are just the basic costs of forming and maintaining an LLC in Delaware. Depending on your specific needs, there may be additional costs such as business licenses, permits, and legal fees. Delaware offers a host of favorable tax and business laws that other states cannot compete with.