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Business & Entrepreneurship: Form a Delaware Business

Here you will find resources for starting and growing a new business. Browse the resources below or check your Delaware public library shelves in the following areas: 338; 658

Steps to Forming a Sole Proprietorship

1.  SELECT TYPE OF BUSINESS: There are many types of businesses with variations that will impact your company’s exposure to liability and taxes.  Use this chart to compare the possibilities: http://revenue.delaware.gov/services/Business_Tax/business_structures_table.pdf

For more information on business structures:  https://www.sba.gov/starting-business/choose-your-business-structure

If you decide to form a sole proprietorship or partnership, please see below for the steps.

 

2.  NAME THE BUSINESS: LLCs and Corporations must have a unique business name.  Find out if the business name is available at: https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx

 

3.  APPLY FOR AN EIN FROM THE IRS: A Federal Tax Identification Number, frequently called an EIN, is needed to open a business bank account, obtain a business loan and conduct other business transactions. If you are going to use your personal bank accounts, you may use your Social Security number for the business and no EIN is needed. If you need an EIN, apply at:

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

 

4. OBTAIN A DELAWARE BUSINESS LICENSE: Before conducting any business, the business must have a valid Delaware license. Apply for Delaware business license at:  https://onestop.delaware.gov/osbrlpublic/

 

5.  UNEMPLOYMENT INSURANCE AND WORKERS COMPENSATION INSURANCE:  If you will have employees, check on the insurance requirements at: https://onestop.delaware.gov/osbrlpublic/

 

6.  CHECK FOR ANY ADDITIONAL LICENSE REQUIREMENTS: Most cities and towns require a business license to conduct business: http://firststeps.delaware.gov/local.shtml

Some lines of work require a professional license, for example restaurants, barber shops and building contractor.  Check the list required professional licenses: http://firststeps.delaware.gov/topics.shtml

Steps to Forming a Limited Liability Corporation (LLC) or Incorporating in Delaware

1.  SELECT TYPE OF BUSINESS: There are many types of businesses with variations that will impact your company’s exposure to liability and taxes.  Use this chart to compare the possibilities: http://revenue.delaware.gov/services/Business_Tax/business_structures_table.pdf

For more information on business structures: https://www.sba.gov/starting-business/choose-your-business-structure

If you decide to form an LLC, please see below for the steps.

 

2.  NAME THE BUSINESS: LLCs and Corporations must have a unique business name.  Find out if the business name is available at: https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx

 

3.  FORM THE BUSINESS: Delaware residents can form a LLC or incorporate online at either of these web sites:

https://ct.wolterskluwer.com/startde

incnow.com/Delaware

 

4.  APPLY FOR AN EIN FROM THE IRS: A Federal Tax Identification Number, frequently called an EIN, is needed to open a business bank account, obtain a business loan and conduct other business transactions. The EIN is essentially a Social Security number for the business. Apply for an EIN at:

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

 

5. OBTAIN A DELAWARE BUSINESS LICENSE: Before conducting any business, the business must have a valid Delaware license. Apply for Delaware business license at: https://onestop.delaware.gov/osbrlpublic/

 

6. UNEMPLOYMENT INSURANCE AND WORKERS COMPENSATION INSURANCE:  If you will have employees, check on the insurance requirements at: https://onestop.delaware.gov/osbrlpublic/

 

7. CHECK FOR ANY ADDITIONAL LICENSE REQUIREMENTS: Most cities and towns require a business license to conduct business: http://firststeps.delaware.gov/local.shtml

Some lines of work require a professional license, for example restaurants, barber shops and building contractor.  Check the list required professional licenses: http://firststeps.delaware.gov/topics.shtml