As a company owner, you’ve undoubtedly been asked how to establish a limited liability company (LLC). When you’re creating a Delaware LLC, you’ll have many choices, which may make the process seem intimidating. A limited liability corporation (LLC) established following the legal requirements of the state of Delaware is referred to as a Delaware LLC.
It provides the advantages of restricted liability offered by corporations while at the same time preserving the adaptability that comes with operating a company on an individual level. In this article, we will take you step-by-step through incorporating a Delaware limited liability company (LLC) and explain why this particular business structure is the best option for many new businesses.
Choose an Appropriate Name
LLCs provide additional challenges when trying to choose a suitable name. The name of your business must be descriptive of the goods and services you provide. It’s essential to give some thought to your company’s mission before settling on a name. Suppose your limited liability company (LLC) will operate a restaurant.
In that case, you probably shouldn’t give it a name like “Slices & Dices” or “Slice ‘N Dice Pizzeria” because it will give customers the wrong impression about the type of food and atmosphere they can expect to find there. However, if your firm were called after what it does for a living, potential customers would better understand what to expect when they walk through the door.
File Your Articles of Organization When Creating A Delaware LLC
Articles of Organization must be submitted to the Corporation Center to form a limited liability company in Delaware. Our other online forms for creating a Delaware LLC may be in the same place as this one. Complete the form by providing information about your company’s name and address. After submitting your Articles of Organization, remember to pay the filing costs, which may vary based on whether or not your company will do business electronically.
Check to see whether the state you’re incorporating allows using the name you’ve chosen for your business; if your first choice is already in use, you can always come up with something different. Before you open your business, you’ll want to ensure everything is in order.
Appoint Officers and Directors
The first stage is appointing executives who will make decisions for the organization. Officers need not be human beings but may also be companies. A president and secretary are required by law in Delaware, and you may also choose to have a vice president and a treasurer.
Appointing directors is the next logical step. The members of the board of directors are known as directors, and they are responsible for managing the corporation. Directors, like officers, might be businesses or partnerships rather than human people. The minimum number of board members is three. A director’s rights include access to all corporate documents and participation in all shareholder conferences.
A trustee represents the investors for tax reasons and must be appointed when an S-company is formed.
Obtain a Tax Identification Number (TIN)
To operate legally as a small company in Delaware, one has to register for a Taxpayer Identification Number (TIN) and submit the necessary paperwork on time. Each company, corporation, or legal business organization has its unique TIN for tax and identification purposes. Neither an SSN nor an EIN may be used. Your SSN maybe your tax identification number when doing business as a single proprietor or partnership. A TIN is required for doing business in any jurisdiction. Submit an SS-4 to the Internal Revenue Service.
A Certificate of Incorporation and the appropriate filing fees must be submitted to the Secretary of State of Delaware after you have acquired your Taxpayer Identification Number. A certificate may only be submitted by an authorized signatory in the presence of a notary public.
Apply For a Trade Name Registration
Trade name registration is another mandatory step. This will ensure your LLC is legitimate and safeguard it from dishonest rivals. Getting your Federal Employer Identification Number (FEIN) is also required for many forms and applications.
With a formal operating agreement in place, your business can function. However, if there is just one owner, you can rely on the default requirements of your home state’s laws instead. However, in most cases, a group of owners or investors must formalize their company relationship with an operating agreement.
If you look forward to creating a Delaware LLC, we can help. We’ve helped thousands of corporations and LLCs through the process of incorporating. You can contact us here, and we’ll guide you through the documents you need and get your business going in no time.