Delaware company formation - estimated costs and process

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BrianTan

New member
I am planning to incorporate a company in Delaware (possibly an LLC). Does anyone know the cost to incorporate in Delaware? How long will it take? How much is it to do it yourself vs. hiring a company formation service? What are the yearly costs associated? (ie. filing fees, etc.). I want to have my budget fully prepared beforehand.
Thanks in advance!
 

RachelNg

New member
Incorporation in Delaware, as in most states, has several components that affect the cost, so the total cost can vary widely.
  • Registered agent fee: A Delaware corporation must have a registered agent within the State of Delaware. You can think of them as a bridge of connection between an LLC and the state government. Commercial registered agents range in cost from below $100 to several hundred dollars per year.
  • State filing fee to file the certificate of incorporation/formation with the Delaware Division of Corporation. Filing fee is $89 for a one-page certificate of incorporation, plus $9 for each additional page (typically 2 pages). So, $98 filing fee.
  • Sometimes Delaware is slow to process filings, so paying an extra $50 for 24-hour service may be worth it.
  • If you plan to register the Delaware company in another state or open a bank account, you may need to order a certified copy ($50) or certificate of good standing ($50).
  • Annual LLC tax: a flat annual tax of $300.
So, it can cost about $300 - $400 to do it yourself + annual fee and I think some formation service providers charge $500 - $1000 for a Delaware LLC registration.

An experienced provider who works with startups can do all of this for you, and believe me, that's way more cost-effective than trying to hack it, getting it wrong, and having to pay tons of money to fix it. Your budget for incorporation should run between $1000 and $2500, depending on whether your company will have only one shareholder or multiple cofounders. If you can't afford that kind of money -- meaning if you can't afford to do it right -- you probably aren't ready yet.
 

Risehigh

Active Member
Incorporation in Delaware, as in most states, has several components that affect the cost, so the total cost can vary widely.
  • Registered agent fee: A Delaware corporation must have a registered agent within the State of Delaware. You can think of them as a bridge of connection between an LLC and the state government. Commercial registered agents range in cost from below $100 to several hundred dollars per year.
  • State filing fee to file the certificate of incorporation/formation with the Delaware Division of Corporation. Filing fee is $89 for a one-page certificate of incorporation, plus $9 for each additional page (typically 2 pages). So, $98 filing fee.
  • Sometimes Delaware is slow to process filings, so paying an extra $50 for 24-hour service may be worth it.
  • If you plan to register the Delaware company in another state or open a bank account, you may need to order a certified copy ($50) or certificate of good standing ($50).
  • Annual LLC tax: a flat annual tax of $300.
So, it can cost about $300 - $400 to do it yourself + annual fee and I think some formation service providers charge $500 - $1000 for a Delaware LLC registration.

An experienced provider who works with startups can do all of this for you, and believe me, that's way more cost-effective than trying to hack it, getting it wrong, and having to pay tons of money to fix it. Your budget for incorporation should run between $1000 and $2500, depending on whether your company will have only one shareholder or multiple cofounders. If you can't afford that kind of money -- meaning if you can't afford to do it right -- you probably aren't ready yet.
Rachel are you from bbcincorp :)?
 

Fulton Abraham Sanchez

Fulton Abraham Sanchez, CPA
I am planning to incorporate a company in Delaware (possibly an LLC). Does anyone know the cost to incorporate in Delaware? How long will it take? How much is it to do it yourself vs. hiring a company formation service? What are the yearly costs associated? (ie. filing fees, etc.). I want to have my budget fully prepared beforehand.
Thanks in advance!
In addition to the formation, the LLC also needs to apply for a tax ID or Employer ID Number with the IRS, required to open a bank account. There is a bank in the US that is accepting LLCs with foreign owners and it is doing it remotely.
 

clemens

Corporate Services
Mentor Group Gold
Still it is very cheap to have a US LLC running. I had mine for 5 years by now. The running costs have costed me a fraction of the Cyprus corp.
 

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