Hey there! In this video, Blake from Northwest Registered Agent is joined by Lily to discuss how to move your LLC to Delaware. They cover various options, with a focus on domestication. They provide helpful information on the forms you need to fill out, where to send them, the fees involved, and how to know when your paperwork has been processed. They also emphasize the importance of consulting with a business attorney to determine the best option for your unique needs. So if you’re considering moving your LLC to Delaware, this video is a great resource to guide you through the process and help you spend less time on paperwork, and more time with your customers.
Options for moving your LLC to Delaware
Moving your LLC to Delaware can offer numerous benefits, including tax advantages and a favorable legal environment for businesses. There are three main options to consider when moving your LLC to Delaware: dissolution formation, foreign registration, and domestication.
Dissolution formation process
Under this option, you would completely dissolve your existing business and start a brand new one in Delaware. This can be a time-consuming process, as it involves winding up your current LLC and filing the necessary paperwork to form a new LLC in Delaware. However, it offers a fresh start and the ability to take advantage of Delaware’s business-friendly laws.
Foreign registration process
If you want to maintain your existing LLC and also do business in Delaware, you can go through the foreign registration process. This involves qualifying your current business to operate in Delaware by filing the necessary paperwork and paying the required fees. This option allows you to expand your business into Delaware while maintaining its status in your current state.
Domestication
Domestication is another option for moving your LLC to Delaware. This process involves picking up your business and all its history and transferring it to the state of Delaware. Unlike dissolution formation, domestication allows you to preserve your current business structure and history while benefiting from Delaware’s business-friendly environment.
Consulting with a business attorney
Before making a decision on how to move your LLC to Delaware, it is important to consult with a business attorney. They can provide valuable guidance and help you determine the best option for your specific business needs. Each option has its own advantages and disadvantages, and a business attorney can help you make an informed decision based on your unique circumstances.
Importance of seeking professional advice
Seeking professional advice is crucial when considering a major business decision like moving your LLC to another state. An attorney will have the expertise and knowledge to navigate the legal requirements and ensure compliance with all necessary regulations. They can also provide insights into the potential implications and benefits of each option.
Determining the best option for your business
A business attorney will work closely with you to understand your business goals and objectives. They will assess factors such as your current business structure, tax implications, and growth plans to determine the best option for moving your LLC to Delaware. Their expertise and experience will help you make an informed decision that aligns with your business strategy.
Forms required for domestication
If you choose the option of domestication, there are three forms that you need to fill out and submit to the Delaware Division of Corporations.
Filing cover memo
A filing cover memo is a document that includes essential details such as your name, address, and phone number. The state of Delaware provides a standardized form for this purpose, but you can also create your own as long as it includes all the necessary information.
Certificate of conversion
The certificate of conversion is a crucial form that indicates your intention to transfer your LLC’s registration from one state to Delaware. It serves as official documentation of the domestication process.
Certificate of formation
The certificate of formation is the final form required for domestication. It establishes your LLC as a legally recognized entity in Delaware and outlines important information such as the name of your business, its purpose, and the names of its members.
These forms can be found on the Delaware Division of Corporations website, and it is important to ensure that you are using the correct forms for your specific business.
Where to send the forms
Once you have filled out the necessary forms, it is important to send them to the appropriate authority for processing.
Using Delaware’s document upload service
Delaware offers a convenient online document upload service, which allows you to submit your forms electronically. Simply visit the Delaware Division of Corporations website, follow the instructions, and upload your completed forms.
Mailing them to the Delaware Division of Corporations
Alternatively, you can mail your forms directly to the Delaware Division of Corporations. Make sure to send them in the correct order: the filing cover memo, followed by the certificate of conversion, and finally the certificate of formation. The mailing address can be found on the Delaware Division of Corporations website.
Fees for domestication
There are fees associated with the domestication process in Delaware. These fees cover the costs of processing your paperwork and vary depending on the type and number of forms you are submitting.
Submission fee for certificate of conversion
The submission fee for the certificate of conversion is approximately $200. This fee covers the administrative costs of processing your conversion request.
Submission fee for certificate of formation
The submission fee for the certificate of formation is around $90. This fee is necessary to establish your LLC as a legally recognized entity in Delaware.
Additional optional fees
In addition to the submission fees, there may be additional optional fees depending on your specific needs. For example, you may choose to pay for certified copies of your documents or expedited processing. These optional fees can vary, so it is important to check the Delaware Division of Corporations website for the most up-to-date information.
Processing of documents
Once you have submitted your forms and paid the necessary fees, the Delaware Division of Corporations will process your paperwork.
How Delaware processes the paperwork
Delaware has established efficient processes for handling LLC domestication requests. They will review your forms, verify the information provided, and ensure compliance with all relevant regulations. The processing time can vary depending on the volume of requests, but Delaware is known for its business-friendly environment, and the process is typically completed in a timely manner.
Receiving approved copies
Once your paperwork has been processed and approved, the Delaware Division of Corporations will send you approved copies of your documents. These copies will serve as official proof of your LLC’s registration in Delaware. Make sure to provide accurate contact information on the filing cover memo to ensure that the approved copies are sent to the correct address.
Summary of moving your LLC to Delaware
In summary, there are three main options for moving your LLC to Delaware: dissolution formation, foreign registration, and domestication. Each option has its own advantages and considerations, so it is important to consult with a business attorney to determine the best course of action for your specific business needs.
The domestication process requires the submission of three forms: a filing cover memo, a certificate of conversion, and a certificate of formation. These forms can be submitted online using Delaware’s document upload service or sent by mail to the Delaware Division of Corporations.
There are fees associated with the domestication process, including submission fees for the certificate of conversion and the certificate of formation. Additional optional fees may also apply depending on your specific requirements.
Once your paperwork has been processed, the Delaware Division of Corporations will send you approved copies of your documents. These copies serve as official proof of your LLC’s registration in Delaware.
Conclusion
Moving your LLC to Delaware can offer numerous benefits, including a favorable legal environment and tax advantages. It is important to thoroughly consider your options and consult with a business attorney to determine the best approach for your specific needs.
Professional advice is crucial when making complex business decisions, and a business attorney can provide the expertise and guidance necessary to navigate the process of moving your LLC to Delaware. With their assistance, you can ensure that the paperwork is completed accurately and in compliance with all relevant regulations.
Take the time to review the options available and make an informed decision that aligns with your business goals. Moving your LLC to Delaware can be a strategic move that sets your business up for success. Seek professional assistance if needed and make the most of the opportunities that Delaware has to offer.