5 Things You Need to Know Before You Start an LLC in Delaware
f you are interested in starting a Limited Liability Company (LLC) in Delaware, you have made the right decision. Doing so can be a great way to protect your personal assets and give your business the legal structure it needs to succeed.
However, before you can get started, there are a few important things you need to know. In this blog post, we’ll provide you with the essential information you need to know to get your LLC set up in Delaware. Keep reading to find out more.
Table of Contents
1. Determine if an LLC is the right business structure for you
If you’re considering to get LLC in Delaware, one of the first steps you need to take is determining the right business structure for your venture. While the Limited Liability Company (LLC) is one of the most popular business structures today, it might not be the right fit for your company.
Before making the decision to form an LLC in Delaware, you should be sure that this type of business structure will best serve your company’s needs. For example, LLC provides valuable asset protection, tax flexibility, and the ability to raise capital.
These kinds of benefits may not be available with other types of businesses
2. Obtain the necessary licenses and permits for your business
One of the first steps is to obtain the necessary licenses and permits for your business. Depending on the type of LLC you’re forming, there may be certain regulations and requirements that you’ll need to follow.
The first step is to determine which type of business entity you’ll be registering as. You can register as a limited liability company (LLC) or a professional limited liability company (PLLC). Each of these entities has different regulations and requirements that you’ll need to follow. It’s important to review the requirements for each entity before making your decision.
Once you’ve determined the type of business entity you’ll be registering as you can begin the process of obtaining the necessary licenses and permits. Depending on the type of LLC you’re forming, you may need to apply for a business license, sales tax permit, or other permits specific to your industry.
3. Comply with ongoing requirements for LLCs in Delaware
From understanding the legal requirements to navigating the necessary paperwork, there are certain things you need to know before you start an LLC in Delaware.
One of the most important things is to familiarize yourself with Delaware law. Delaware is a popular state for forming LLCs because of its corporate-friendly laws and regulations. Before forming your LLC, it’s essential that you take the time to understand the state’s legal requirements.
This includes researching what forms and filings you need to complete to form your LLC and familiarizing yourself with the ongoing requirements once your business is established.
Also, all LLCs in Delaware must have a registered agent. This person or company is responsible for receiving important legal documents on behalf of the LLC. To make sure you’re compliant with the law, choose a registered agent who is authorized to receive service of process in Delaware.
4. Understand Your Tax Obligations
It’s also important to understand your LLC’s tax obligations. You may need to file an annual tax return or pay estimated taxes throughout the year, depending on the type of income your LLC earns. Make sure you understand what your LLC needs to do when it comes to taxes, so you don’t run into any issues down the line.
Understanding these tax obligations before forming an LLC in Delaware will ensure that everything goes smoothly and your business complies with all applicable laws and regulations. With a bit of research and preparation, you can get your LLC up and running in no time.
5. How Much Will It Cost
Registering your LLC doesn’t cost a hefty amount of money, and there is a one-time fee for filing your LLC with the state. This cost can vary from $50 to $200. You pay this fee when you file an LLC’s certificate of formation with the Delaware Department of State.
However, if you want to speed up the processing time of the documents, you will have to pay an additional $50. Registering and developing is not as costly as you think it is, but it is always recommended to also have alternative income streams to maximize your ROI.