Forming new business entities involve complex procedures accompanied by expenses you’ll need to track to keep your company in good standing. While the process may seem simple, late payments cost hefty penalties even for big corporations. In light of this, let our trade experts share helpful tips on settling all Delaware LLC fees to help you save time and money.

Formation Costs for a Delaware LLC

Business Name Reservation

One of the first steps you must take when forming an LLC is choosing a distinct company trade name not similar to other businesses operating in the state. If you’re still in the middle of business planning, our team suggests you pay for business name reservation to the Delaware Secretary of State for a minimal filing fee of $75. 

Although it’s not mandatory, going through this process will lessen the chances of your business entity going through trademark lawsuits that could cost hundreds of dollars for hiring. 

Certificate of Formation

Before your LLC could officially conduct business, you’ll need to submit a certificate of formation to the office of the Department of State to establish your company name and registered agent address. Delaware charges a $90 filing fee for the processing and recording of this formation document. The same-day expedited services cost another $100.

person with document

Certified Copies of Delaware LLC Filing

To run transactions within the business faster, you’ll need a company bank account, and that will require you to get a certified copy of your LLC filing. Delaware LLCs could easily request a certified copy of their certificate of formation with a $50 fee. 

Certificate of Good Standing

Another bank requirement you may need when you form a Delaware LLC is the Certificate of Good Standing. This business document determines if companies already paid all annual and filing fees to the secretary of state.  Obtaining these documents cost a $99 fee for a short-form certificate and a $224 fee for a long-form certification.

Operating Agreement

Although a Delaware Limited Liability Company isn’t legally obliged to draft operating agreements, it’s crucial for a business to have this document to outline provisions and regulations an LLC must follow in terms of management decisions [1]

men shaking hands

Creating this agreement on your own incurs no fee, but we highly suggest seeking assistance from professionals. Some LLC formation companies who also provide legal consultations and registered agent services offer to curate this document along with their incorporation packages.

EIN Registration

For tax purposes and bank requirements, acquiring EIN (Employer Identification Number) from the IRS is a must. There’s a corresponding fee if you choose to get this number through a formation service, but you can opt to process it personally free of charge.

Registered Agent Service

As you may already know, electing an excellent registered agent is a legal policy applied in most states, including Delaware. To qualify as a Delaware registered agent, an individual or a company must meet standard requirements set by the state. 

woman with a laptop

If you decide to hire registered agents through a service provider, it could cost you from $0-$300 per year.

Foreign LLC Registration

Like a domestic LLC, foreign entities operating in other states must also file formation documents like Certificate of Registration to the Delaware Division of Corporations. Failure to submit this filing will cost your business $200 every year.

Other Taxes

Among the most crucial Delaware LLC fees is the tax that any new LLC must settle annually to form good standing with the state. Besides franchise tax, LLCs are taxed through personal tax returns from business profits on top of the yearly $300 LLC tax.

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Delaware LLC Annual Fees

Delaware Franchise Tax

Unlike corporations, an LLC operating in Delaware isn’t required to file annual reports. However, you’ll be obliged to settle franchise tax obligations amounting to $300 every June 1st on top of your business income tax. 

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Late settlement of Delaware franchise tax will cost you another $200. Our trade experts highly recommend seeking professional assistance for legal or tax advice to avoid penalties. 

Importance of Paying LLC Formation and Annual Fees

When you form a Delaware LLC, you’re automatically obliged to comply with state obligations and regulations. Failure to pay your LLC formation costs and fees including annual franchise tax, settle your state filing fee, or maintain your Delaware registered agent could result in penalties and administrative dissolution that revokes your right to operate. 

FAQ

Is there an annual fee for an LLC in Delaware?

Yes, there’s an annual fee for an LLC in Delaware. Aside from the $300 franchise tax fee that you need to settle every June 1st to maintain good standing with the state, you’ll also need to settle yearly fees for registered agent services and other business income profits.

Conclusion

While it’s wise to estimate the total cost of all the general information about Delaware LLC fees through this post, don’t forget that you can seek legal or financial advice from professional providers anytime. In addition, as trade experts, we highly suggest signing for business support and formation services to manage your compliance requirements efficiently.

For other states’ fees and LLC formation costs, you can also visit the following pages: 

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