It is simple to incorporate an LLC in Delaware. Here are the steps:
- Naming the LLC
You need to pick a unique and sound name for your LLC. Ensure that it meets all the required guidelines like –
- ‘Limited Liability Company’ must be a part of the name.
- Words like FBI, State Department or Treasury, etc., should not be included.
- Words like banks, universities, etc., need to be supported by documents. In such cases, a technically skilled and licensed individual should be a part of the LLC.
- The name should be exclusive and distinguishable.
Also, check if the web domain has been taken or is still available.
- Appointing a Registered Agent in Delaware.
You need to have a Registered Agent representing you in Delaware. It is a crucial step while forming a corporation in Delaware. The Agent should be registered and have a correspondence address in Delaware. This is because all legal and official documents like tax forms, papers, lawsuits, etc., will be sent to the Agent.
- File the Certificate of Formation
Now is the time to file the Certificate of Formation with the Delaware Division of Corporation. You need to be sure if the LLC will be manager-managed or member-managed.
- Prepare the Delaware LLC Operating Agreement
Even though the Agreement is not mandatory, it is good to have one. It defines every last detail of how the LLC will be governed, operated, and managed. It is a legal document. The ownership and the SOPs of the LLC will all be a part of it.
- Obtaining the EIN
The Employer Identification Number is the last step. It is a nine-digit number from the IRS and is a must for taxation purposes. It is like the Social Security number for your business. The EIN will be required to open a bank account for your business and hire employees, besides being required while filing for federal and state taxes.
