How Much Does it Cost to Form a Delaware LLC?
Entrepreneurs interested in creating a Delaware LLC often want to know: How much does it cost to form a Delaware LLC? What are the fees associated with maintaining a Delaware LLC?
Delaware LLCs are inexpensive to form and maintain. Accordingly, the Delaware LLC is an attractive option for entrepreneurs. It is generally well understood that Delaware LLC law is the best in the world. Deciding against forming an LLC in your home state and seeking out Delaware is known as a “flight to quality.” It is encouraging to entrepreneurs that the barrier to entry for the Delaware LLC is low and costs to maintain are reasonable.
How Much Does It Cost to Form a Delaware LLC?
The Delaware LLC formation package prices vary depending on optional services selected and the speed at which you wish to have your LLC created. Here are the costs you can expect before and after forming a Delaware LLC:
LLC Cost #1: Certificate of Formation
- The company’s Certificate of Formation is required to be filed with Delaware to form a Delaware LLC.
- While the state filing fee is $90, there may be additional fees depending on how quickly you would like to receive your evidence of formation for your Delaware LLC.
- The basic package fees:
- $90 filing fee (the minimum required fee) plus registered agent and $9 processing fees charged by the formation service
- $99 to have the certificate filed within 24 hours
- IncNow can eliminate the hassle and delay of filing yourself and take care of this for you for as little as $9, plus registered agent fees and required state fees. Compare our Delaware LLC packages now!
- IncNow also offers a “Complete Package” which includes the LLC operating agreement for a total price of $298. Should you wish to form it faster, then select the “Now Package,” which includes email delivery within one business day of your order for $399.
LLC Cost #2: Certified Copy of Delaware LLC Filing
- Some banks will require a certified copy of your Delaware LLC filing in order to open a business account with them.
- Cost: $99 through IncNow. This can be ordered at the time of formation or subsequently ($50 state fee plus $49 processing fee).
LLC Cost #3: Certificate of Good Standing
- Banks may also require a Certificate of Good Standing (a document that states the LLC has paid all required fees to the secretary of state of Delaware and has “good standing” status).
- You can order this at the time of your initial filing or subsequently.
- $99 for a short form certificate that states the name and good standing status of your company ($50 state fee plus $49 processing fee)
- $224 for a long form certificate (required in Ohio; $175 state fee plus $49 processing fee)
What Does an LLC Cost After It’s Formed?
LLC Cost After Formation #1: Delaware Franchise Tax
- The state of Delaware requires that all Delaware LLCs pay an annual “franchise tax” to maintain good standing status. This is like “dues” to stay in “the Delaware LLC club.” This is not based on income and must be paid even if there is no business activity.
- This is due on or before June 1 of each year after the company is formed.
- Cost: $300
- The state charges a $200 penalty fee, plus interest for all late payments.
LLC Cost After Formation #2: Delaware Registered Agent Fee
- The state of Delaware requires that every Delaware LLC maintain a Delaware Registered Agent, such as IncNow.
- A registered agent must have a physical street address in Delaware and is responsible for receiving and forwarding legal notices and annual franchise tax notices from the state of Delaware on your company’s behalf. (Learn more about Delaware Registered Agents).
- This fee is included for the first calendar year in our Delaware LLC packages.
- Cost: $90 for the rest of the first calendar year when you select IncNow (officially known as Agents and Corporations, Inc.) as your registered agent and $99 for subsequent calendar years. If you form the company after July 1, then the IncNow registered agent service extends to a second calendar year (up to 18 months) as part of the order.
Overall, How Much Is an LLC?
When you form an LLC, you will have up front costs to form the entity, such as filing and state fees, and ongoing costs to keep the LLC in good standing, such as Delaware franchise tax and registered agent fees. IncNow’s LLC package prices can be viewed on our homepage.
The first year after you forme your LLC it will owe $300 franchise tax on June 1 and every June 1 the LLC wishes to remain in good standing. There will also be a registered agent fee due to your registered agent, which varies depending on the registered agent.
Please note that an LLC must pay franchise tax and have a Delaware registered agent to remain in good standing, so it is important to pay both fees on time to avoid the company being declared void.
What Do You Get for Free with an LLC?
Form an LLC gives your business a certain prestige and goodwill. It will give confidence to potential investors that you take the ownership and governance of the LLC seriously.
Save with IncNow.com
IncNow’s low-cost, inclusive Delaware LLC packages with professionally prepared and signature-ready operating agreements make the process of forming your LLC quick and easy!
- Packages start at just $9, plus required state fees and agent fees.
- Packages include the first calendar year of Delaware registered agent service.
- Filings are usually submitted to the state the same day we receive the order. The state of Delaware usually takes one to three business days to approve the filing. Then the documents are sent to you one business day after approval from the Delaware Secretary of State. With the “Now Package” we send you an email within one business day of your order including copies of your formation document and internal company documents to help you start your business faster.
- It takes just five minutes to complete the easy online order form for your Delaware LLC online with IncNow!