Did you know more than 68.2% of all Fortune 500 companies are incorporated in Delaware?
The state's business-friendly law and tax climate are part of why it's the most popular option for LLCs. There is no state sales tax on intangible personal property and no state income tax for corporations conducting activities outside the state.
Before you can take advantage of this business hub, there are some important address requirements for Delaware LLC formation to keep in mind. This comprehensive guide will help you understand the nuances of Delaware LLC address requirements and how to navigate them.
Although this business address does not need to be in the State of Delaware itself, you need a physical address that will be known as your principal place of business. This principal state of business entity is often referred to as the headquarters from where business decisions are made or where the company is operating from.
So if you're asking yourself, "Do I need a physical address to incorporate?" the answer is yes. However, you don’t necessarily need to have a physical office space.
Creating an LLC in Delaware involves three simple steps:
Delaware Division of Corporations
John G. Townsend Bldg
401 Federal Street, Suite 4
Dover, DE 19901
Alternatively, you can file online at the Delaware Division of Corporations website. For an out-of-state business entity, you will instead complete a Certificate of Registration, which will cost you $200. You must also submit a Certificate of Existence from the home state where your foreign LLC was formed.
79% of all U.S. initial public offerings in 2022 happened in Delaware. So, why is Delaware such a popular option for entrepreneurs and business owners?
These benefits are also easy to access outside of Delaware, as long as you comply with Delaware address requirements for LLC formation.
Despite the many benefits of Delaware incorporation, there are some drawbacks to having an address here:
If you don’t run your business from a physical space in Delaware, your business address can be anywhere else in the United States or even another part of the world. For instance, if you’re operating out of California, you can use a California address while forming an LLC in Delaware.
Similarly, if you’re not operating within the U.S., you can also use your address in Australia while incorporating a company in Delaware. However, some actions (like opening up a U.S. bank account) will require a U.S. address.
If you’re having trouble deciding where your business address should be, here are several popular options to think through:
A virtual mailing address is one with an assigned physical space, such as an office building or commercial suite, that receives mail on your behalf. It eliminates the need for renting out a physical office space, as it also provides mail forwarding services.
You also maintain anonymity which is great for companies prioritizing privacy. Stable is a leading provider of virtual mailing services. You receive a virtual address that you can access remotely when you link it with a virtual mailbox.
A registered agent is a person or company designated to receive official legal documents (like service of process and tax notices) on behalf of the LLC. They are a point of contact between you and the Delaware Secretary of State, and they must have a physical address in the state where the LLC is registered.
You can appoint yourself as the registered agent if you have an address inside Delaware or hire a registered agent service provider with a physical address there, like Stable.
For a small fee of $25, Stable will streamline the entire process while keeping your LLC registered and in good standing.
Alternatively, you could use your residential address as your LLC’s business address — if it’s in Delaware. This is a great option if you’re operating a home-based business, as you won’t have to worry about renting out a physical space.
However, you must keep in mind that your name and address will be public knowledge, which could have privacy implications. Additionally, the legal and compliance requirements for setting up a residential address could be tricky, so it’s wise to seek legal advice if you decide to go this route.
You may end up paying a lot more in legal fees compared to just getting a virtual address.
Co-working spaces are shared working environments and provide all the amenities of a traditional office, like desks, chairs, conference rooms, and internet access. It’s an economical option if you need to rent out a physical space for your LLC. They are also often located in prime areas, which is great for meeting clients and partners.
A Delaware LLC can use a rented co-working space as its official business address, but this comes with the same drawbacks as using a residence, such as:
Even if your physical business address is not in Delaware, you’ll automatically opt into Delaware laws once you file to incorporate or form your LLC. One of these requirements is that you must have a Delaware registered agent.
Other laws Delaware LLCs deal with include:
Navigating address requirements for Delaware LLC formation doesn’t have to be tricky. With the right knowledge and resources, you can decide which type of address works best for your business.
Whether you choose to use a registered agent, residential address, or co-working space, ensure you understand the legal and compliance requirements of each. With Stable, you can simplify this process with a professionally registered address and experienced registered agents.
Stable provides permanent virtual addresses and mailboxes, so you never have to worry about mail or changing addresses again. We’ll digitize all mail you receive, and you can scan, forward, shred (and even deposit checks!) from anywhere in the world.
Get started with Stable here and get a virtual business address + mailbox in less than three minutes!
Disclaimer: Stable is not a legal or accounting firm; therefore, we cannot provide legal or tax advice. You should consult legal and tax professionals for specific advice on how to meet ongoing obligations that apply to you and your company.
