Delaware LLC Cost: What You Need to Know
Forming a Delaware LLC is a popular choice for entrepreneurs and business owners due to the state's favorable business laws and tax structure. However, there are certain costs associated with forming and maintaining a Delaware LLC that must be taken into consideration.
This article will provide an overview of the costs associated with forming a Delaware LLC and keeping it compliant, as well as the advantages of forming a Delaware LLC.
Table of Contents
- Filing Fees for Forming a Delaware LLC
- Registered Agent Fees
- Annual Franchise Tax
- Annual Report Fees
- Other Costs to Consider
- Advantages of Forming a Delaware LLC
- Conclusion / TLDR
Filing Fees for Forming a Delaware LLC
The filing fee for forming a Delaware LLC is $90. This fee is paid to the Delaware Division of Corporations when filing the Articles of Organization. The filing fee is non-refundable and must be paid in full at the time of filing. We will form your Delaware LLC for free.
If you don't want any bells and whistles we'll create the Certificate of Formation and file it for you and you just pay the $90 filing fee as the Delaware LLC cost to get setup.
Registered Agent Fees
In order to form a Delaware LLC, you must appoint a registered agent in the state of Delaware. A registered agent is responsible for receiving legal documents on behalf of the LLC. The cost of a registered agent varies depending on the service provider, but typically ranges from $50 to $300 per year.
VALIS Group Inc. will be your Registered Agent and provide you with compliance reminders for the State and the IRS by email and snail mail for $10/month, discounted to $5/month if you get our US Office package as well. Or you can pay annually at $100/year, or discounted to $50/year if combined with our US Office service.
Annual Franchise Tax
Delaware requires all LLCs to pay an annual Business Entity LLC tax. The flat tax is $300 and must be paid by June 1st of each year. We will send several email and 1 snail mail reminders to you so you don't miss this deadline. Late fines are $200 + interest.
Annual Report Fees
LLCs in Delaware do not have to file an annual report like corporations do so there is no Delaware LLC cost for annual reports.
Other Costs to Consider
In addition to the filing fees and taxes mentioned above, there are other costs associated with forming and maintaining a Delaware LLC that must be taken into consideration. These costs include legal fees for drafting the Articles of Organization (we include a sample set for free), accounting fees for filing taxes ($500 and up), and other miscellaneous expenses such as office supplies and postage.
There are several filing options that can increase the cost. Although we work to create your company the same or next day (depending what time you get your completed order to us) the State requires a payment to expedite the forming of your company to next day. We can also get Certified copies, and Apostilled copies, and more.
Advantages of Forming a Delaware LLC
Despite the costs associated with forming and maintaining a Delaware LLC, there are many advantages to doing so. For example, Delaware has one of the most business-friendly tax structures in the country, making it an attractive option for entrepreneurs and business owners.
Importantly, Delaware has a well-developed body of corporate law that provides strong protection for LLCs and their owners. The Court of Chancery is a business court without a jury that makes business conflicts very easy to remedy.
Finally, Delaware is home to many large corporations, making it an ideal location for businesses looking to expand their reach. Most of the Fortune 500 companies are formed in Delaware, you can get yours here too. There is no better State to form your company in if you are a non-us resident.
Conclusion / TLDR
Forming a Delaware LLC can be a great way to start or grow a business, but it is important to understand the Delaware LLC cost associated with doing so. The filing fee for forming a Delaware LLC is $90, and there are also $300 annual entity taxes that must be taken into consideration.
Additionally, there are other costs such as Registered Agent ($50), legal fees (possibly) and accounting fees (having an accountant is a great idea!) that must be taken into account. Despite these costs, there are many advantages to forming a Delaware LLC, including favorable tax laws and strong corporate law protections. Delaware is easily the best state for a non-US person to form a company in.