As a business owner, you have to make sure that you manage the company well. At the same time, you also have to ensure that your business complies with state laws and stays on top of all the LLC fees.
Why Start An LLC
One of the most crucial decisions you have to make when forming a company is the structure of your business. For many startups, the best option is a limited liability company (LLC). It combines the benefits of liability protection offered by a corporation and the management flexibility of a partnership. An LLC can have an individual or multiple owners, which are also known as members. There is no limit.
Choosing this structure offers many advantages.
- The members of the LLC will not be liable for the actions of the company. It is what makes it attractive to emerging entrepreneurs. It protects the personal assets of the members. This protection will not change. The LLC protects your assets as long as your business is running. To avoid any complications, make sure you keep all business and personal finances separate.
- LLCs are pass-through entities. Thus, the profits of the business go to the members directly. The government does not tax the LLC at a company level like it does corporations. Instead, the members include it in their personal federal income tax returns. Because of this, filing taxes will be easier for the members. The members can also choose to be responsible for the returns which will lower the tax burden in case the company loses money.
- Another advantage of forming a Delaware LLC is that it offers flexibility when it comes to the management style. You can choose if your company will be member-managed or manager-managed. Member-managed means that the members share the decision-making for the affairs of the business. Meanwhile, the manager-managed option allows the LLC to appoint specific members or outsiders to serve as managers. They will be the ones in charge of making decisions for the day-to-day activities of the company.
Forming A Delaware LLC
If you have chosen to create an LLC in Delaware, you will have to undergo a formal process. Register your company with the state by filing paperwork. You can check the website of the Secretary of State of Delaware for the requirements. You can also hire a team of experts, such as DoMyLLC, to handle the documents for you.
What LLC Fees Should We Expect?
Another thing that you have to think about is the LLC fees that your company will have to pay. Generally, forming an LLC in Delaware is inexpensive. It is another advantage that attracts new business owners.
- The first payment that you have to prepare is for the filing of your company’s Certificate of Formation. It will cost your company $90. If you want expedited service, you will have to pay additional fees – $50 for the 24-hour service and $100 for same-day processing. Additionally, you can pay $50 more if you want to receive a certified copy of the filing documents.
- The name of the company has to be unique and distinguishable. To ensure this, you can reserve a name before filing your Certificate of Formation. Delaware does not require this step. But, if you choose to do it, you will have to pay $75. Doing this will reserve your company name for 120 days. Thus, no other business entity can use it.
- Forming an LLC in Delaware requires you to have a registered agent. You can appoint an individual or a company as long as they have a physical street address within the state. The registered agent will receive and forward the legal and tax notices on behalf of your company. Thus, you will also have to include their payment in your LLC fees. The fee may vary depending on the agent. If you want a team of experts to handle the documents of your company and ensure compliance, check out the services of DoMyLLC. We can give you a price quote upon request.
- If you open certain accounts, like a bank account, lender account or creditor account, under the name of your LLC, you may have to obtain a Certificate of Good Standing. You can request this from the Secretary of State along with your initial filing or ask for one subsequently. A certificate costs $50. It contains the name of your LLC and states that it has a good standing status.
- LLC fees in Delaware do not end once you finish the registration process. Your company will have to take care of ongoing costs that are involved in maintaining a business in the state.
- LLC has to file and pay franchise tax annually. You can do this online on or before June 1. It costs $300. If you fail to meet the deadline, Delaware will charge a $200 penalty plus 1.5% interest for every month that the company misses.
Why Hire a Third Party
Many people think that hiring the services of a third party to handle the registration process and the documents of their companies is an unnecessary expense. What they do not know is that a company can gain a lot of benefits from doing this. Filing paperwork on your own may seem like a good strategy to reduce the fees. However, the process may be stressful. This case happens especially to people who are doing it for the first time. Additionally, beginners may take more time to finish the multi-step process.
The team of experts at DoMyLLC can take care of the requirements and fees that your LLC needs to handle. Our experience with the Delaware process can also decrease the risks of making potential errors.
We can also provide personalized solutions to make sure that our systems fit the situation and needs of your company. Aside from helping with the registration process, DoMyLLC can also provide assistance in your internal documents and report filings. We also offer registered agent services. Contact us now, and we will make sure that your company complies with the law.
Business Filing Section