Why founders choose Delaware
Delaware is the most famous state for forming a company. Its business law is detailed and long established, a specialized business court handles company disputes, and investors and their advisers know Delaware companies well. For a startup planning to raise venture money, a Delaware C corporation is often the expected structure.
That reputation leads many founders to pick Delaware by default, including those who will never raise money. Our Delaware LLC formation service starts with a short, honest conversation about whether Delaware fits you. If it does, we form the company and keep its Delaware and IRS filings on track every year. We are a bookkeeping and tax firm in New Jersey working with U.S. founders and with founders abroad, especially in Turkey, fully online. SolutionHub is a private firm, not a government agency, and Delaware state fees are paid to the state separately from our fee.
What our Delaware formation service includes
Delaware LLC or corporation filing
We check name availability and file a Certificate of Formation for an LLC, or a Certificate of Incorporation for a corporation, with the Delaware Division of Corporations. Under the Delaware Division of Corporations fee schedule, the state filing fee is currently $110 for an LLC and starts at currently $109 for a corporation, depending on the shares authorized. Delaware law (for LLCs, 6 Del. C. § 18-104) requires every LLC and corporation to keep a registered agent with an office in Delaware; we arrange the agent as part of the filing.
EIN from the IRS
A new Delaware company needs an EIN for banking, payroll and tax filings. If the owner lives outside the U.S., the IRS online application is not available, so the application goes by fax, mail or phone. We prepare it for you through our EIN application service.
Operating agreement or bylaws
Banks and investors often ask to see an operating agreement (for an LLC) or bylaws (for a corporation). Drafting them is legal work, so we can refer you to an attorney for your operating agreement or bylaws.
Delaware annual tax and franchise tax
Delaware has no annual report for LLCs, but every Delaware LLC pays a flat annual LLC tax, currently $400, by June 1 each year. Corporations file an annual franchise tax report and pay franchise tax by March 1. Under the authorized shares method the minimum tax is currently $175, and the assumed par value capital method has a minimum of currently $400, plus a $50 report fee. Missing a deadline costs a $200 penalty plus 1.5% interest per month. We put these dates on your compliance calendar from the start.
When Delaware makes sense, and when it doesn’t
Delaware usually makes sense when:
- You plan to raise money from venture investors or issue stock options (usually a Delaware C corporation; see C-corp formation).
- You run an online business from abroad with no office, staff or inventory in any one U.S. state.
- Partners, investors or a platform you work with specifically ask for a Delaware entity.
Delaware is usually not the best choice when your business operates in New Jersey or another state. An LLC formed in Delaware that has an office, employees or a shop in New Jersey generally has to register in New Jersey as a foreign LLC too, so you pay fees and file reports in two states. A local business is usually better off with a New Jersey LLC, and for a lean online LLC, Wyoming often costs less each year. Our business formation overview compares the states side by side, and our non-resident state comparison shows what each costs over three years.
After formation: Form 5472, taxes and bookkeeping
The state of formation does not change your federal filings. A single-member LLC owned by a foreign person must file Form 5472 attached to a pro forma Form 1120 each year, even with no income, and the IRS penalty for not filing starts at $25,000. Our Form 5472 filing service handles this every year. A Delaware corporation files a corporate tax return like any other C corporation.
These returns are only as good as the records behind them, so we recommend clean books from the first month with our monthly bookkeeping. Founders abroad can read more on our foreign-owned LLC page.
What we don’t do: we do not open U.S. bank accounts, provide U.S. addresses or mail forwarding, or set up Stripe, PayPal or Amazon accounts. We prepare the documents those providers usually ask for, such as formation papers and the EIN letter.
Your fee is fixed and agreed before work starts. Book a free consultation to discuss your Delaware company.
