Suppose you’re starting a company and want to protect yourself from future liability. In that case, you may have heard that the best thing to do is to consider forming A Delaware LLC law. However, what does it entail? There is a plethora of legal jargon floating around, and it may be challenging to keep up. Words like “limited liability,” “corporation,” and “LLC” are bandied around in business reports and on your favorite program, but what do they mean? What differentiates them from one another? If I were to choose one, which would be best for my company? This comprehensive manual will walk you through the steps necessary to establish your own limited liability company in Delaware. Did you know that a Limited Liability Company (LLC) is the optimal legal framework for a new business? Here are steps to consider if you want to register a limited liability company in Delaware.
Choose a Name For Your Company
While coming up with a name for your company might be exciting, you’ll need to be sure it’s not already in use in your state. Using the internet is a simple solution to this problem. In the first instance, visit the website of your state’s Secretary of State. You may use these sites to find available names by entering part of the name you want to use or the full name. Check the website for your state to see if there are any restrictions on the name you want to use.
Some jurisdictions only allow the use of particular characters or words in the name, while others demand the inclusion of specific terms (like “law,” “associates,” etc.). Some states may have their lists of banned terms or mandate the use of additional words (like “corporation,” “limited,” etc.). It doesn’t have to be your name, and a pseudonym is perfectly OK, but it must be unique enough that no other business in the state would use it by mistake.
Decide On Your Company’s Purpose When Forming A Delaware LLC
Consider what you want to do as a firm while figuring out what that company should do. A real estate investor, for instance, may consider forming A Delaware LLC to buy properties while shielding themselves from personal responsibility in the event of a lawsuit. At the same time, a business owner may opt to incorporate to safeguard their assets. For this reason, if a company is sued or declares bankruptcy, its owners will not be held personally liable for any of the debts or damages incurred by the firm. This is also true of a limited liability corporation (LLC), but there are additional considerations when making your business structure decision. Getting in touch with an attorney who can advise you on the appropriate legal structure for your business is your first order of business.
Draft your Company’s Articles of Organization
The next step is to write up your company’s Articles of Organization and submit them to the Secretary of State. The Secretary of State’s website will often include free forms and a checklist of what has to be included. It might take many additional weeks to be up and running if any of your information is missing or wrong, so please double-check it using the templates they give on their website before sending it in. About ten days after you register your Articles with the state, you’ll get a notification that they have been approved and are ready to be used (or not, if there is a problem). Once they are in order, you can go on to setting up the rest of your business, such as tax IDs and bank accounts. However, before you can do that, you need to establish a few items inside your LLC, including an Operating Agreement and Capital Accounts (for which we provide free templates).
Appoint a Registered Agent
The next step in forming A Delaware LLC is appointing a registered agent. To put it simply, your company’s registered agent is the individual who will be contacted by law enforcement, government authorities, and anyone with questions or concerns about your firm in the event of a lawsuit or other legal situation. As a beginner, this may all seem rather daunting; however, be assured that it is not as difficult as it may appear. If someone were to file a lawsuit against your Delaware LLC, they would first contact the registered agent listed for the business. You may get a Delaware mailing address from several businesses; sometimes, you can even choose to have your regular mailing address forwarded there.
If you’re wondering how to form a Delaware LLC, then don’t worry! A Corporation Center representative who specializes in forming Delaware LLCs will be happy to guide you through the process and answer all of your questions. Call us toll-free at 800-580-4870 now for more information.
