For decades, Delaware has reigned supreme as the best state to incorporate a company or form an ²ÊºçƵµÀ. At Harvard Business Services, Inc., our team can act as your guide while forming one of these businesses, ensuring that each step is completed without a hitch. The process to form an ²ÊºçƵµÀ in Delaware is not difficult, and we can assist you throughout the entire company formation process. Here are some of the most important Delaware ²ÊºçƵµÀ filing requirements:
Let’s dive into each of these Delaware ²ÊºçƵµÀ requirements, so that you’ll have a general idea of what’s to come as you form your new business.
1. Choosing a Name for Your ²ÊºçƵµÀ
One of the most important requirements to form an ²ÊºçƵµÀ in Delaware is creating a unique business name. There are over 200,000 Delaware ²ÊºçƵµÀs, so it may be a challenge to find a name that's unique. The only other requirement for naming a Delaware ²ÊºçƵµÀ is that it must have one of the following three endings: ²ÊºçƵµÀ, L.L.C., or Limited Liability Company. Otherwise, simply review Delaware ²ÊºçƵµÀ name availability to ensure your company name is available
For more information about Delaware ²ÊºçƵµÀ naming rules, read our article about Naming Delaware ²ÊºçƵµÀs.
2. Appoint a Delaware Registered Agent
If you plan to start a Delaware ²ÊºçƵµÀ, appointing a Registered Agent with a physical address in the state is a Delaware ²ÊºçƵµÀ filing requirement. Registered Agents act as a liaison between your company and the Delaware Division of Corporations. They are responsible for receiving and forwarding important legal and government documents in a timely manner. This includes service of process (such as lawsuits), Franchise Tax notices, annual report reminders (for corporations), and compliance-related communications like late or void notices from the Delaware Secretary of State. Our Registered Agent service is just $50 per year for the life of your company, as long as your company remains in good standing with the state of Delaware.
For more information, read What Is a Delaware Registered Agent?
3. Filing a Certificate of Formation
The Certificate of Formation is a simple, one-page document filed with the Delaware Division of Corporations that legally establishes your ²ÊºçƵµÀ in the state of Delaware. In this document, you’ll need to include your ²ÊºçƵµÀ name and your Registered Agent’s name to get approval from the state. There is a state fee of $109 when submitting this document to the state. Harvard Business Services will prepare the Certificate of Formation, and the state fee is included in all of our formation packages.
You can file your new business entity with our online form, and we will forward it to the Delaware Division of Corporations on your behalf. You’ll typically receive an approved Certificate of Formation within 2 or 3 business days.
You can file with us online through our ²ÊºçƵµÀ formation page to get started.
4. Obtaining an EIN
Having an active Federal Tax ID Number is another Delaware ²ÊºçƵµÀ requirement for new businesses. This step should be completed shortly after your business is formed. It functions like a Social Security number for your business and is used for tax reporting and identification. Your ²ÊºçƵµÀ will need an EIN to open a business bank account, hire employees, file federal taxes, and apply for business licenses. In some cases, if an ²ÊºçƵµÀ has no employees, it can use the owner’s Social Security Number for tax purposes instead of an EIN. In most other cases, an EIN is a Delaware ²ÊºçƵµÀ requirement.
Businesses can apply for an EIN online via the IRS website.
You can learn more about the Employee Identification Number on our website.
5. Creating an ²ÊºçƵµÀ Operating Agreement
Creating an ²ÊºçƵµÀ Operating Agreement is a highly recommended step, even though it technically isn’t a requirement to form an ²ÊºçƵµÀ in Delaware. An Operating Agreement is a legal document that outlines the ownership structure and member roles of your ²ÊºçƵµÀ. Drafting one of these documents will provide internal clarity and legal protection to your team members, and is sometimes requested when you start working with a new bank or investor.
You can draft an ²ÊºçƵµÀ Operating Agreement using one of our templates online.
One of the biggest advantages of forming an ²ÊºçƵµÀ in Delaware is that you don’t need to live in the state, or even in the United States, to get started. Delaware does not require owners to have a physical address in the state. The only requirement is that your ²ÊºçƵµÀ maintains a Registered Agent with a Delaware address to receive official documents and legal notices.
It’s actually quite common to form a Delaware ²ÊºçƵµÀ while operating your business in another state. In this case, your company is considered a Delaware (domestic) entity but will likely need to register as a foreign entity in any state where you conduct business. This process, known as foreign qualification, allows your ²ÊºçƵµÀ to legally operate outside of Delaware.
Non-U.S. citizens can also form and run a Delaware ²ÊºçƵµÀ from anywhere in the world (with the exception of a few sanctioned countries). U.S. citizenship, residency, and even having a Social Security Number are not required. Your ²ÊºçƵµÀ can even obtain an EIN from the IRS without an SSN or ITIN, allowing you to open a business bank account, hire employees, and remain compliant with federal tax requirements.
You can learn more about Delaware company formation for non-residents online.
Before starting an ²ÊºçƵµÀ, it’s important to understand the upfront costs and the ongoing obligations required to keep your company in good standing.
The initial cost to form a Delaware ²ÊºçƵµÀ is the state filing fee for the Certificate of Formation. In addition, all Delaware ²ÊºçƵµÀs are required to maintain a Registered Agent with a physical address in the state. After formation, Delaware ²ÊºçƵµÀs must pay an annual franchise tax of $300. This tax is due each year by June 1, regardless of your company’s income or activity level. Unlike corporations, ²ÊºçƵµÀs in Delaware are not required to file an annual report, which simplifies ongoing compliance.
Through Harvard Business Services, Inc., you can form an ²ÊºçƵµÀ for as little as $229. Through this service, our team will take care of all of the state fees, the Certificate of Formation, and will provide a year of our registered agent service. Our team will also keep you informed of all annual requirements to ensure your company stays in good standing.
Starting an ²ÊºçƵµÀ in Delaware involves a series of straightforward but important steps that ensure your business is legally compliant from day one. While the process can feel overwhelming at first, breaking it down into a simple checklist makes it much easier to manage. Use the list below as a quick reference to guide you through each requirement.
More than two-thirds of our companies filed in Delaware are limited liability companies, and our team at Harvard Business Services has been forming and filing Delaware ²ÊºçƵµÀs for over 40 years. Below, we have answered the most frequently asked questions about starting an ²ÊºçƵµÀ in Delaware.
There is no documentation required to form an ²ÊºçƵµÀ in Delaware. The only information required, whether you are a United States citizen or not, is:
Name of the company (check a company name for free)
Communications Contact (must be an individual)
Email address
Telephone number
Street address (city, state, country, and postal code), which can be anywhere in the world
Initial member(s) we are releasing the ²ÊºçƵµÀ to until successors are elected internally through the ²ÊºçƵµÀ Operating Agreement
Shipping and billing address
Method of payment (all major credit cards, electronic check, wire transfer, money order, or check)
For additional information, read What You Need to Form an ²ÊºçƵµÀ in Delaware.
No, a Delaware bank account is not a Delaware ²ÊºçƵµÀ requirement; it can be opened anywhere in the world. Typically, to open a U.S. business bank account, bankers require a copy of the Certificate of Formation, the Federal Tax ID Number, and a member or manager from the ²ÊºçƵµÀ to appear in person.
For further details, read our Banking Clarification.
The opening of a business bank account could be different for every applicant; you are at the mercy of each particular bank and how it processes the request. At this time, Harvard Business Services, Inc. cannot assist with the opening of a business bank account. However, if an address is needed or any additional documentation is required to process your request, we will be glad to help in any way possible. As a note, be very cautious of any company that offers to open a bank account on behalf of your ²ÊºçƵµÀ.
No, you are not required to state the purpose of the business when you start a Delaware ²ÊºçƵµÀ, since it is not required to be listed on the Certificate of Formation filed with the state of Delaware. Harvard Business Services, Inc. will only need to know the purpose of the ²ÊºçƵµÀ if you ask us to obtain a Federal Tax ID Number for you from the IRS.
No, this information is not available on the public record and is not required to be listed on the Certificate of Formation filed with the State of Delaware. After starting a Delaware ²ÊºçƵµÀ, the member or manager information is typically kept internally within the ²ÊºçƵµÀ Operating Agreement.
For detailed information on how we file the ²ÊºçƵµÀ and do not release the member or manager information, read Form a Delaware ²ÊºçƵµÀ without Releasing Your Name on the Public Record.
Typically, the approved documents are emailed to you within two to three business days after the filing is submitted to the Delaware Division of Corporations.
No, the state of Delaware does not require you to reserve an ²ÊºçƵµÀ company name. With our same-day filing service, the name is officially unavailable for others to use once we file the ²ÊºçƵµÀ with the state of Delaware. Typically, filings are submitted to Delaware on a same-day basis if the order is received by 4:30 PM Eastern Standard Time.
No, you are not required to visit the state of Delaware to form an ²ÊºçƵµÀ. As previously mentioned, anyone, anywhere (except sanctioned countries by the U.S.) in the world can form an ²ÊºçƵµÀ in Delaware without visiting the state or becoming a U.S. citizen. The order can be done by phone (800-345-2677) or online. If you prefer to stop by our office, we would be glad to meet face-to-face and process the order right then and there.
Form a Delaware ²ÊºçƵµÀ Now!
Since 1981, Harvard Business Services, Inc. has helped form over 400,000 Delaware corporations and ²ÊºçƵµÀs for people all over the world.
Harvard Business Services, Inc. guarantees your annual Delaware Registered Agent Fee will remain fixed at $50 per company, per year, for the life of your company.
Harvard can provide assistance throughout the life of your company. These custom services are the most popular with our clients: