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Forming an LLC in Delaware — guide for Hispanic entrepreneurs

How to form an LLC (Limited Liability Company) in Delaware: formation fee ($110), annual fee ($300 franchise tax (flat)), registered agent requirements, and step-by-step process.

Forming an LLC in Delaware

An LLC (Limited Liability Company) is the most common business structure for immigrant entrepreneurs in the US. Personal asset protection, tax flexibility, and low administrative cost.

Why Delaware

#1 state for large corporations — 65% of Fortune 500 incorporated here Court of Chancery — specialized business dispute court (judge-only, fast decisions) Owner privacy — does not require member names in public registry Anonymity for foreign owners — popular among international entrepreneurs Flat $300/year — easy to budget

Key facts about Delaware

ItemInformation
Formation fee (initial)$110
Annual fee$300 franchise tax (flat)
Annual report deadlineFranchise Tax due June 1 each year ($300 flat)
Accepts foreign owners✅ Yes (includes ITIN holders)
Requires Registered Agent✅ Yes (must have physical address in Delaware)
Operating Agreement required⚠️ Not by law but highly recommended
Approval time1-3 weeks (online faster)

Steps to form an LLC in Delaware

1. Choose a name

  • Must end in “LLC”, “L.L.C.”, or “Limited Liability Company”
  • Unique in Delaware
  • Cannot include restricted words (Bank, Insurance, Attorney, etc.) without authorization

2. Designate a Registered Agent

  • Resident individual in Delaware or authorized service with physical address in Delaware
  • If you don’t have an address in Delaware, hire a service: $50-$300/year (Northwest, ZenBusiness, Incfile, etc.)

3. File Articles of Organization

4. Create Operating Agreement

  • INTERNAL document (not filed with state)
  • Defines how the LLC operates: members, profit distribution, decision-making, exits

5. Get EIN (Employer Identification Number)

  • LLC’s federal tax identification number
  • FREE at irs.gov
  • With SSN: instant online
  • With ITIN: by mail (4-6 weeks) or fax (4 days)
  • No SSN/ITIN: fax or mail (Form SS-4)

6. Open bank account

  • Need: EIN, Operating Agreement, Articles of Organization, personal ID
  • Foreign-owner friendly: Bluevine, Mercury, Relay, Wise Business, Capital One Spark

State comparison

StateFormation FeeAnnual FeePrivacyBest for
California$70$820+LowConsumer market
Texas$300$0 (depends)MediumNo income tax + market
Florida$125$138.75LowLatin market + no tax
Delaware$110$300HighLarge corporations
Wyoming$100$60HighCost + privacy
Nevada$425$550HighAsset protection

Last verified: 2026-05-24. General information — always verify with Delaware Division of Corporations before filing.

State services and resources in Delaware

Where to register your LLC in Delaware

The Secretary of State office (or equivalent) of Delaware handles LLC registrations. Generally accepts filings:

  • Online (fastest, 1-3 days)
  • By mail (4-8 weeks)
  • In person (varies by state capital)

Post-formation requirements

  1. EIN from IRS (free, online, ~15 minutes)
  2. Business bank account — most require LLC docs + EIN
  3. State/local licenses depending on business type
  4. Annual Report yearly (keeps LLC active)
  5. Quarterly tax estimates if income > $1,000/quarter

LLC for immigrants with ITIN

  • Permitted: ITIN holders can be LLC members
  • Banking: business accounts with ITIN available (BlueVine, Mercury, Lili — verify policies)
  • Tax filing: Schedule C on your 1040 with ITIN; Form 1065 for multi-member LLC

Common errors

  • Forgetting annual report (can dissolve LLC)
  • Mixing personal and LLC finances (loses limited liability protection)
  • No Operating Agreement (even single-member)
  • Operating in another state without registering as foreign LLC

Delaware-specific resources

  • Delaware Secretary of State — LLC search + filings
  • Delaware Department of Revenue — state business taxes
  • SCORE (Service Corps of Retired Executives) — free small business mentoring
  • SBA (Small Business Administration) — resources and financing

Last verified: 2026-05-25.

General procedural information for educational purposes. Not legal, tax, or immigration advice. Laws and fees change — verify with the issuing agency before taking action. For case-specific guidance, consult a licensed immigration attorney or other appropriate professional.

Frequently asked questions

Do I need SSN to form an LLC in Delaware?
NO. You can form an LLC in Delaware using ITIN or just passport number. After, to open a bank account for the LLC, you’ll need EIN (free Federal Tax ID from IRS, NO SSN required) and possibly the holder’s ITIN.
How much does it cost to form an LLC in Delaware?
Costs vary: state filing fee $50-$500, registered agent $0-$300/year (self-RA if you have Delaware address), LLC operating agreement $0-$200, EIN FREE via IRS, annual report fees $20-$300/year depending on state.
Better to form LLC in Delaware or in Wyoming/Delaware?
If your business operates in Delaware, cheapest is forming LLC in Delaware. If you operate in another state but register the LLC in Wyoming/Delaware, you must register as ‘foreign LLC’ in your operating state — paying both fees. Wyoming/Delaware only makes sense for passive LLCs (rentals, investments, holding companies).
Does my Delaware LLC pay taxes?
By default, single-member LLC is ‘disregarded entity’ (taxes flow through to owner via Schedule C). Multi-member LLC treated as ‘partnership’ (Form 1065). You can elect S-Corp or C-Corp taxation via Form 2553/8832. Consult CPA with ITIN experience.