Frequently Asked Questions
Get answers to the most common questions about Delaware business formation, registered agents, and ongoing compliance.
We are not a law firm and do not provide legal advice. Contacting us does not create an attorney–client relationship.
General Delaware Business Questions
Why should I form my business in Delaware?
Delaware offers several key advantages:
- Specialized Court of Chancery with business law expertise
- Business-friendly laws refined over decades
- Strong privacy protections and liability shields
- Preferred by investors and required for most IPOs
- Over 60% of Fortune 500 companies are incorporated in Delaware
Do I need to live in Delaware to form a business there?
No, you don't need to be a Delaware resident to form a Delaware business. However, you must have a Delaware registered agent with a physical Delaware address, which we provide as part of our service. You can live anywhere in the world and still take advantage of Delaware's business benefits.
How long does it take to form a Delaware business?
We guarantee 24-hour filing for all formation documents. In many cases, we can complete filings the same day you place your order. Delaware offers expedited processing for an additional state fee if you need same-day approval from the state.
Guarantee applies only to our submission timing; it does not guarantee government approval or legal outcomes. Refund limited to our service fee.
What's the difference between forming in Delaware vs. my home state?
While you can form a business in any state, Delaware offers unique advantages including sophisticated business laws, investor preference, privacy protections, and the specialized Court of Chancery. Many businesses choose Delaware even if they operate primarily in other states to take advantage of these benefits.
Can I change my business from another state to Delaware?
Yes, you can convert or domesticate your existing business to Delaware. This process varies depending on your current state and entity type. We can help you evaluate whether conversion makes sense for your business and handle the necessary paperwork.
Delaware LLC Questions
What are the main benefits of a Delaware LLC?
Delaware LLCs offer several advantages:
- Limited liability protection for owners
- Flexible management structure and operating agreements
- Pass-through taxation (no double taxation)
- Privacy protection - member names not required in public filings
- No residency requirements for members or managers
- Strong asset protection features
How much does it cost to form a Delaware LLC?
The Delaware state filing fee is $90. Our service packages start at $99 plus state fees, which includes preparation and filing of your Certificate of Formation, Operating Agreement, and first-year registered agent service.
What ongoing requirements does a Delaware LLC have?
Delaware LLCs have minimal ongoing requirements:
- Annual LLC tax of $300 due by June 1st each year
- Maintain a Delaware registered agent
- No annual report filing required (unlike many other states)
- Keep business records and maintain separate business bank account
Can a single person form a Delaware LLC?
Yes, Delaware allows single-member LLCs. You can be the sole owner, manager, and member of your LLC. This provides liability protection while maintaining simple tax treatment as a "disregarded entity" for federal tax purposes.
Do I need an Operating Agreement for my Delaware LLC?
While Delaware doesn't legally require an Operating Agreement, it's highly recommended. An Operating Agreement defines how your LLC is managed, member rights and responsibilities, profit distributions, and procedures for major decisions. We include a customized Operating Agreement with all our LLC formation packages.
Delaware Corporation Questions
Why do investors prefer Delaware corporations?
Investors prefer Delaware corporations because of the state's sophisticated corporate law, predictable legal environment, and the Court of Chancery's expertise in business disputes. Delaware's corporate structure is well-understood by investors, lawyers, and courts, making transactions smoother and more predictable.
What's the difference between a C Corporation and S Corporation?
The main differences are:
C Corporation:
- Unlimited shareholders
- Multiple stock classes allowed
- Double taxation (corporate + personal)
- Preferred for raising capital and IPOs
S Corporation:
- Limited to 100 shareholders
- One class of stock
- Pass-through taxation
- Good for smaller, closely-held businesses
What are Delaware corporation annual requirements?
Delaware corporations must:
- File an Annual Report by March 1st each year
- Pay franchise tax (calculated by authorized shares or assumed par value method)
- Hold annual shareholder and board meetings
- Maintain corporate records and minutes
- Keep a Delaware registered agent
How much is Delaware franchise tax for corporations?
Delaware franchise tax depends on your calculation method:
- Authorized Shares Method: $175 minimum for up to 5,000 shares, then $250 for 5,001-10,000 shares, plus $85 for each additional 10,000 shares
- Assumed Par Value Method: $400 minimum, calculated using a complex formula based on gross assets and issued shares
- You can choose the method that results in lower tax
Compliance & Registered Agent Questions
What is a registered agent and why do I need one?
A registered agent is a person or service that receives legal documents and official state notices on behalf of your business. Delaware law requires every corporation and LLC to have a registered agent with a physical Delaware address. This ensures you receive important legal documents and compliance notices.
Can I be my own registered agent?
Yes, if you have a Delaware address and can be available during business hours. However, using a professional registered agent service offers several advantages: privacy protection (keeps your personal address off public records), guaranteed availability, professional document handling, and compliance reminders.
What happens if I don't maintain compliance?
Non-compliance can result in:
- Late fees and penalties
- Loss of good standing status
- Administrative dissolution of your business
- Inability to conduct business or access courts
- Personal liability exposure for business debts
How do I get a Certificate of Good Standing?
A Certificate of Good Standing can be obtained from the Delaware Division of Corporations online or by mail. It costs $50 and shows that your business is current with all state requirements. We can obtain this certificate for you as part of our ongoing services.
Can you help with ongoing compliance after formation?
Yes! We offer comprehensive ongoing services including:
- Registered agent service with document delivery
- Annual report preparation and filing
- Franchise tax calculation and payment
- Compliance deadline reminders
- Certificate of Good Standing requests
- Amendment filings and other corporate changes
Pricing & Service Questions
Are there any hidden fees in your pricing?
No, we believe in complete transparency. Our pricing includes all service fees upfront, plus clearly disclosed Delaware state fees. Any optional services or expedited processing fees are clearly explained before you order.
Do you offer a money-back guarantee?
Yes, we guarantee that we'll file your formation documents within 24 business hours or we'll refund your service fee completely. We're confident in our ability to deliver fast, professional service.
What's included in your formation packages?
All our packages include:
- Business name availability check
- Preparation and filing of formation documents
- Operating Agreement or Corporate Bylaws
- First year of registered agent service
- 24-hour filing guarantee
Higher-tier packages include additional services like EIN acquisition, banking resolutions, and expedited processing.
Can I upgrade my package after ordering?
Yes, you can upgrade to a higher service level before we complete your filing. Contact us as soon as possible after placing your order to discuss upgrade options and any additional fees.
Still Have Questions?
Can't find the answer you're looking for? Our Delaware business formation experts are here to help with personalized guidance for your specific situation.
No legal advice; no attorney–client relationship is formed.