Forming A Limited Liability Company in Delaware
It’s very easy to form an LLC in Delaware. The first thing you have to do is decide on your company’s name. Whatever name you choose must contain the words “limited liability company” or the abbreviation “LLC.” You’re allowed to include in the name any of the following words: “Company," "Association," "Club," "Foundation," "Fund," "Institute," "Society," "Union," "Syndicate," "Limited" or "Trust,”or you can use an abbreviation for any of the words.
Once you’ve chosen your name, you have the right to reserve it so that nobody else takes the name before you can get your documents filed with the State. To reserve the name, you need to file an application with the Delaware Secretary of State’s office. Upon receipt of the application, the Secretary of State will check to see if the name is available, and assuming it is, will reserve the name for you for 120 days. You have the right to renew the name reservation for additional periods of 120 days.
When you’re ready, the next step is to file in the Secretary of State’s office a document called “certificate of formation.” The certificate of formation can be a very simple document, and at a minimum it has to state the name of the LLC, the name and address of your LLC’s registered agent and the address of your LLC’s registered office.
The date your LLC is created is the date the certificate of formation is filed in the Secretary of State’s office.
Although the formation of an LLC is rather simple, the next step is to create an operating agreement that governs the conduct of the business, and explains the rights of each of the partners. The operating agreement is extremely important, and should always be prepared by an experienced attorney.
