- What else do I need to do?
- What are the next steps?
- What annual fees do I pay?
Delaware LLCs are easy to set-up and manage. However, there are some things you need to do to run your LLC the right way.
What are the Next Steps After Registering a Delaware LLC?
After successfully registering your Delaware LLC, there are several important steps to take in order to establish and operate your business effectively. Here is our complete checklist of what you should do after forming your Delaware LLC.
LLC Tip #1.) Prepare and Sign an LLC Operating Agreement.
Your Delaware LLC should have a written LLC Operating Agreement that is signed by all the LLC Members. The LLC Operating Agreement is the company document that sets up the ownership and management of the company.
The LLC Operating Agreement is the playbook for how the company should be run. A well-prepared Operating Agreement should cover:
- How to add or remove LLC Members,
- What responsibilities each Member has,
- How Members vote on big decisions, and
- Who ownership in the company can be given to.
The LLC Operating Agreement is important for protecting the LLC Members from personal liability and preventing disputes between business partners.
IncNow’s complete Delaware LLC packages include their 20 page, ready-to-sign LLC Operating Agreement prepared by Delaware business attorneys.
LLC Tip #2.) Get an Employer Identification Number (EIN).
One of the first things you should do after forming a Delaware LLC is obtain an EIN number for your business. An EIN number is the type of tax ID number that the IRS gives to business entities. Think of an EIN number like a Social Security number for your LLC.
- Pay federal taxes,
- Hire employees,
- Open a business bank account, and,
- Apply for business licenses.
If you are a U.S. citizen with a Social Security Number, you can apply for an EIN number online for free. IncNow can help U.S. and non-U.S. citizens obtain an EIN number from the IRS.
LLC Tip #3.) Open a Business Bank Account
Rule number one of running an LLC is to keep your personal finances separate from the business. After you obtain an EIN number from the IRS, you should open a business bank account for your company.
The point of forming an LLC for your business is to give yourself limited liability protection from the company’s debts or obligations. Opening a bank account for an LLC and keeping accurate financial records is an important part of protecting yourself personally as a business owner.
A bank may need you to present certain documents before opening a bank account for an LLC. These documents may include:
- A Certified Copy of the Delaware LLC Certificate of Formation: A bank may ask for this document as proof that the company actually assists.
IncNow can assist with getting a Certified Copy from the Delaware Secretary of State’s office.
- The LLC Operating Agreement: Most banks want to see a copy of the LLC’s Operating Agreement as proof of ownership in the company.
- A Delaware Certificate of Good Standing: A Certificate of Good Standing is an official document proving that an LLC has paid its Annual Franchise Tax and is compliant with Delaware state laws.
IncNow can assist with obtaining a Certificate of Good Standing from the Delaware Secretary of State’s office.
LLC Tip #4.) Register a Trade Name, or “DBA”
If you plan on doing business with your LLC under a different name, you will need to file a DBA first. A DBA, or “Doing Business As” is also known as a trade name. With a DBA, an LLC can use a different name for business purposes other than its full legal name.
For example, Sweet Treats LLC can do business as just “Sweet Treats”. However, the company will need to file a DBA for the name “Sweet Treats” first.
DBAs are public documents that are usually filed with a local government office. IncNow can assist with filing a Doing Business As (DBA) in New Castle County, Delaware.
LLC Tip #5.) Pay Delaware Annual Franchise Tax
The most important thing a Delaware LLC needs to do to be compliant is pay its Delaware Annual Franchise Tax. The Delaware Annual Franchise tax is a fee that Delaware LLCs need to pay each year after they are formed. If a Delaware LLC does not pay its Franchise Tax, the company will lose its Good Standing status and will be unable to do business.
The Annual Franchise Tax for a Delaware LLC is $300. The Delaware LLC Franchise Tax is a flat fee that does not change based on business income. If your Delaware LLC is active at any point each year, you will need to pay franchise tax.
LLC Tip #6.) Pay the Annual Registered Agent Fee
In addition to the Delaware Annual Franchise Tax, you also need to pay your Annual Registered Agent fee. If you do not renew your Delaware Registered Agent service, your agent may resign. The state of Delaware will cancel a Delaware LLC if the company does not have a Delaware registered agent listed for more than 30 days.