If you already have an LLC in another state and want a Delaware LLC, then how to start an LLC would be somewhat different. You must register as a foreign LLC. We have here a guide on how you can qualify and register for a foreign LLC in Delaware.
On this page, you’ll learn about the following:
- Forming an Delaware Foreign LLC
- Steps to Filing Delaware Foreign LLC Online
- After Forming Delaware Foreign LLC
Forming an Delaware Foreign LLC
A foreign LLC does not need to be a company from another country but a business formed under the laws of another state. To start a foreign LLC in Delaware, you need to register it with the Delaware Secretary of State.
Step 1: Choose Delaware Foreign LLC Name
Obtain a name reservation certificate and submit it with your foreign qualification requirements at the Delaware Secretary of State. Your LLC’s legal name outside of Delaware will be listed on the application, along with the name it will use in Delaware. Take note of the requirements for naming your LLC.
Step 2: Select Delaware Foreign LLC Registered Agent
You’ll need a registered agent to form a foreign LLC in Delaware and take note that a Delaware registered agent must have a local address. Here are three of the best LLC services on our list that can provide you with registered agents to ease your worries:
Step 3: File Registration of Delaware Foreign LLC
- Regular Mail: Division of Corporations PO Box 898 Dover, DE 19903 or
- Express Mail: Division of Corporations John G. Townsend Bldg. 401 Federal Street, – Suite 4 Dover, DE 19901
Include the following:
- LLC’s full legal name.
- A fictitious name or a DBA (only if your LLC’s legal name is not available); Attach a statement of adoption of the fictitious name signed by all LLC members.
- LLC’s principal office and mailing addresses.
- LLC formation state and date.
- Registered agent’s name and address in Delaware
- Date when your LLC will start operations in Delaware.
- Credit card information on the last page of the form for the $200 application fee.
The LLC cost in Delaware, even for foreign LLCs will differ between online filing and by mail.
Step 4: Determine How Your Delaware Foreign LLC is taxed
Foreign LLCs are also subjected to the Delaware Business Privilege Tax, and they must file LLC annual reports each year.
Note that forming a foreign LLC would be good for your business as you can legally operate in a different state thus reaching a larger market and opening more opportunities for higher profit.
Steps to Filing Delaware Foreign LLC Online
Time needed: 5 minutes.
Delaware Secretary of State does not have any provision for online registration of foreign or domestic LLCs. The LLCs have to download the form, fill it up and send it to the official address via mail. However, businesses can upload the form or any documents online to the ‘Document Upload Service’ page. Here’s what you have to do to register Delaware foreign LLC online,
- Download and Fill Out Registration Form
To start with one has to download the registration form available on the Delaware Secretary of State portal. Download the form on your computer. Fill it up with the required information. Before start filling up the form, make sure to read all the terms and conditions.
- Upload Completed Form
Once the form is done filing, visit the online Document Upload Service portal to submit the form. Select the ‘Document Upload’ section.
Along with the documents, one has to mention some important information regarding the LLC. The steps are similar to the Delaware Certificate of Formation.
Points to mention in the Document Upload Page:
1. Priority Type
2. Submitter Infor (name, address, city, state, email)
3. Document request type
4. Corporation name, type of document/type of certification
5. Return method
You can upload the document in the document request type section. By clicking the Continue button you will be on the next page.
Points to note about Document Upload:
1. This is a new service by the Delaware Division of Corporations for eFiling
2. For the existing and frequent users, a My eCorp Account will be created. This account should be linked with their existing Division of Corporation account.
3. The service is not available on weekends or on any holidays. The timing of the service is Mon-Thurs from 7.45 am to 11.59 pm (EST) and Fri from 7.45 am to 10.30 pm (EST)
4. Technical Support contact: call at (302) 857-4626 or email at Dosdoc_Tech_Support@delaware.gov.
Once you have done uploading documents, you have to make the payment. The Franchise Tax and other payments can be made online. Payment should be made by using VISA, MasterCard, and American Express cards.
It is convenient plus easy to file for the foreign LLC if you are doing it online. The steps are very easy and that’s why it’s possible to go along with the steps and form the foreign LLC in Delaware.
After Forming Delaware Foreign LLC
Here are added things you need to accomplish after forming your Delaware Foreign LLC
- Obtain Business Licenses. Find the business licenses you’ll need using the Business License Search.
- File LLC annual reports and Business Privilege Tax.
- Pay State Taxes like sales tax; you’ll need an EIN for your LLC.
How Much Does It Cost to Register a Foreign LLC in Delaware
To register as a foreign LLC in Delaware, you can file through mail by paying $200 or online by paying a filing amount of $200 payable to the Delaware Secretary of State.
When forming a Delaware LLC, you must file a Certificate of Formation and pay a filing fee. If you are a foreign company, you will also need a Certificate of Existence from the state in which you originally formed your company. There is a $200 fee for this service. Before you begin your business in Delaware, you must obtain all necessary business licenses and permits. You can obtain a list of these requirements at the Department of State’s website.
In addition to the certificate of good standing, a foreign LLC in Delaware must obtain an EIN. These documents must be provided to the state’s division of corporations. Once you’ve completed the application and paid the fee, you will need to wait for two to four weeks for the state to process your application. Alternatively, you can pay a $75 fee for an expedited service. The fees vary, so you should contact the Division of Corporations for more information.
The fee to register a foreign LLC in Delaware is $200. There’s also a fee to get a certificate of good standing, which is called a “certificate of good standing”. These documents are required for some financial institutions, and cost $50. To obtain your certificate, you can fill out an application online, or mail it to the Delaware Division of Corporations. During the filing process, you’ll be required to send in your credit card information.
When you have your company set up in Delaware, you’ll have to pay the required taxes. You’ll have to pay a $300 franchise tax and gross receipts tax every year. However, if you’re planning on hiring employees, you’ll also need to purchase workers’ compensation insurance. To learn more, contact your business attorney or the Division of Corporations. They’ll help you get everything you need to open your company in Delaware.
In addition to these costs, foreign LLCs must apply for a Certificate of Good Standing in their home state. This document is used by the Division of Corporations to determine if the foreign LLC has an existence in the state. Moreover, foreign LLCs are required to pay taxes even if they don’t have a physical presence in the state. This certificate of good standing will serve as the primary document to be filed in the state of Delaware.
The process of forming a Delaware LLC is relatively simple. You’ll need to fill out the necessary forms, pay a $200 filing fee, and meet the naming and formation requirements. The first registration form is the Certificate of Formation, which asks for the name of the business, the name of the registered agent, and the date of effective formation. After completing this form, you can submit the completed forms to the Division of Corporations via fax or mail. If you’re using the mail, you’ll need to submit a copy of your certificate with a check or credit card.
If your LLC is formed under the laws of another state, it is referred to as a foreign LLC in Delaware.
Businesses incorporated outside of the state where they operate must have “foreign qualifications” issued in the other states.
A domestic LLC is a company registered in Delaware as an LLC. The entity type that has a physical presence in another state is a foreign LLC.
Starting a foreign LLC in Delaware does not require a lot of documentation or tasks. However, it is always good to seek help from a professional when it comes to running your business. Get a professional registered agent and form your foreign LLC anywhere without a hassle.