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 business days to a week if you file online. Filing by mail is generally slower than online filing and often takes one to two weeks. The exact time can depend on the volume of filings 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 business days, but expedited services are available for faster processing.

Once your LLC formation documents are processed, Delaware will either approve or deny your paperwork. After approval, the state will send you the certificate of formation or incorporation, either electronically (for online filings) or via mail. 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 are processed.

Expedited LLC filing options in Delaware

If you’re in a hurry and willing to spend more, you can purchase Delaware’s expedited processing services, which come with an additional fee of up to $1,000 and an expedited process 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 correctly filled out, as any errors or omissions can lead to delays and negate the benefit of expedited processing.

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

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

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

• 1-hour expedited service: For a $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 you have the most up-to-date information.

17. Consider business loans

Using business loans as a part of your financial strategy can be a powerful step to expedite your business growth. Here’s how to approach this step:

• Determine your need for a loan: Before jumping into the loan application process, assess whether you have a genuine need for a loan. Maybe you need funds for expanding your operations, buying equipment, increasing inventory, hiring staff, or smoothing out cash flow. Getting clear about your business’s financial needs can help you make a more informed decision about applying for a loan.

• Research different types of loans: There are different types of loans available for businesses, from traditional bank loans and Small Business Administration (SBA) loans to alternative online loans and lines of credit. Each type comes with its own terms, interest rates, and requirements. The right choice for you will depend on your specific needs, financial situation, and the stage of your business.

• Consider eligibility requirements: Lenders have varying criteria for approving loans. These can include factors such as your credit score, business revenue, the profitability of your business, and how long you’ve been in operation. Before applying for a loan, carefully check these criteria to see if you qualify.

• Prepare your loan application: Once you’ve chosen a type of loan and confirmed that you meet the lender’s criteria, the next step is to prepare your loan application. This involves compiling financial documents such as your business plan, financial statements, tax returns, and details of your collateral. You may also need to present a plan outlining how you intend to use the loan and how you will repay it.

• Compare loan offers: If your loan application is approved, you may receive offers from different lenders. Consider each offer’s terms carefully, including the interest rate, loan amount, loan term, and any additional fees. Be sure you understand the total cost of the loan and how the repayment terms align with your business’s financial projections.

Taking on debt is a serious commitment that demands careful planning and consideration. For additional guidance throughout the process, consult with a financial advisor or mentor.

There’s no easy shortcut to starting a business. Cutting corners or skipping steps in the early days can create unnecessary friction, confusion, or even legal liability down the road. But while much of the work that goes into starting a new business might seem tedious, it’s not overly complicated. If you take a thoughtful and methodical approach to this process, and address each step in the correct order, you’ll build a foundation that can support all the goals and dreams you have for your business—exactly what motivated you to begin this journey in the first place.