The state of Delaware, known for its business-friendly environment, offers entrepreneurs several options for incorporation – each with its own set of timelines. In 2022, more than 313,000 business entities were formed in Delaware, bringing the total number of legal entities incorporated in the state to more than 1.9 million. Whether you're forming a limited liability company (LLC), a C corporation or an S corporation, Delaware has processes to assist you. The speed at which your incorporation is processed varies based on the method of filing you choose, whether you opt for expedited services, and the current workload of the Delaware Division of Corporations.

In this article, we'll discuss the standard processing times for different incorporation methods, expedited processing options and how external factors can influence the overall timeline.

What's in this article?

• How long does it take to incorporate in Delaware?
  
• Expedited LLC filing options in Delaware
  

How long does it take to incorporate in Delaware?

The time it takes to incorporate a company in Delaware varies based on several factors, including the type of business entity being formed and the method of filing. Processing times can also be influenced by external factors, such as state office workload, holidays and unforeseen circumstances. Additionally, the beginning and end of year are typically busier periods. It's a good idea to allow some buffer time beyond the estimated processing times.

• LLC formation time: The standard processing time for forming an LLC is generally a few working days to a week if you file online. Filing by post is generally slower than filing online and often takes one to two weeks. The exact time can depend on the volume of filings that the state is processing.

• Corporation formation time: If you're incorporating a corporation, the timeline is similar to that of an LLC. The standard processing time when filing online is a few working days, but expedited services are available for faster processing.

Once your LLC formation documents have been processed, Delaware will either approve or reject your paperwork. After approval, the state will send you the certificate of formation or incorporation, either electronically (for online filings) or by post. This certificate is your proof of a legally formed LLC in the state and typically takes a few additional days to arrive after your documents have been processed.

Expedited LLC filing options in Delaware

If you're in a hurry and are willing to spend more, you can purchase Delaware's expedited processing services, which come with an additional fee of up to US$1,000 and an expedited processing time ranging from 1 to 24 hours, depending on the level of service you choose.

Delaware offers several expedited processing options for LLC filings. To request these services, you'll need to indicate your choice of expedited service when you file your LLC formation documents. If you're working with a registered agent or a service company to form your LLC, they can handle this for you. Ensure that your documents are in order and filled in correctly, as any errors or omissions can lead to delays and negate the benefit of expedited processing.

• 24-hour processing: For an additional US$50 fee, your LLC formation documents will be processed within 24 hours of submission. This service applies to both online and postal filings, although online submissions reach the state faster.

• Same-day processing: For a fee of US$100, your LLC will be formed on the same day if you submit your filing by the designated cut-off time (typically before noon). This service is available for both online and postal filings, but online is faster due to immediate receipt.

• Two-hour expedited service: For a US$500 fee, your filing is processed within two hours of receipt. Online filing or in-person submission are the best options for timely processing.

• One-hour expedited service: For a US$1,000 fee, your filing is processed within one hour of receipt. Submit documents online or directly in person for the shortest possible processing time.

The fees for expedited processing are in addition to the standard filing fees and are subject to change. Check directly with the Delaware Division of Corporations or through your registered agent before purchasing expedited services to ensure that you have the most up-to-date information.

How Stripe Atlas can help

Stripe Atlas sets up your company's legal foundations so you can fundraise, open a bank account and accept payments within two business days from anywhere in the world.

Join 75K+ companies incorporated using Atlas, including startups backed by top investors such as Y Combinator, a16z and General Catalyst.

Applying to Atlas

Applying to form a company with Atlas takes less than 10 minutes. You'll choose your company structure, instantly confirm whether your company name is available and add up to four co-founders. You'll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers and then e-sign all your documents. Any co-founders will receive emails inviting them to e-sign their documents, too.

Accepting payments and banking before your EIN arrives

After forming your company, Atlas files for your EIN. Founders with a US Social Security number, address and mobile phone number are eligible for IRS expedited processing, while others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.

Cashless founder stock purchase

Founders can purchase initial shares using their intellectual property (e.g. copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.

Automatic 83(b) tax election filing

Founders can file an 83(b) tax election to reduce personal Income taxes. Atlas will file it for you – whether you are a US or non-US founder – with USPS Certified Mail and tracking. You'll receive a signed 83(b) election and proof of filing directly in your Stripe Dashboard.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world's leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects such as ownership structure, equity distribution and tax compliance.

A free year of Stripe Payments, plus $50K in partner credits and discounts

Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on essential tools for engineering, tax, finance, compliance and operations from industry leaders like AWS, Carta and Perplexity. We also provide you with your required Delaware registered agent for free in your first year. Plus, as an Atlas user, you'll access additional Stripe benefits, including up to a year of free payment processing for up to $100K in payments volume.

Learn more about how Atlas can help you set up your new business quickly and easily and get started today.