Delaware is known for many things, from being the first state to ratify the U.S. Constitution to its numerous chemical production facilities. It is also a tax-free state, making it highly attractive to new business owners. If you’re ready to launch a business in Delaware, you’ll need to pick a business name.
Picking a business name isn’t as easy as it sounds. Delaware has rules about business names. You must conduct a business name search to find one that isn’t already in use. That’s why we’ve created a great guide to help you search for business names and show you some tricks and tools to picking a name that helps you start your business in Delaware.
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How to check business name availability in Delaware
Delaware, like every other state, has one certain rule for picking a business name. It must be distinguishable from other business names. It must be unique and the name you pick must be available in the state. How do you check to see if the name you want is available? Here is what you should do.
1. Go to the state business search website
Delaware has a search tool on its corporate website where you can look up business names. Searches will pull up both active and inactive businesses and searching is free.
2. Type in the business name
This can be the name you want or keywords.
3. Hit search
The page will pull up all businesses that have a name either exactly like your pick or those similar to yours. It will also show whether they are in compliance, dissolved, and other basic information.
4. Consider reserving a name
After running a Delaware business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
Delaware allows business owners to reserve a name for 120 days for $75.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Delaware but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your Delaware business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Delaware company?
As you research available business names in Delaware, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Delaware business
Ready to set up your business in DE? Here’s what you do:
1. File your Articles of Organization
Visit the Delaware Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Delaware, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Delaware, the cost is $90.
4. Wait for approval
Delaware will review your application and typically provides approvals within five business days. In some cases, paperwork is approved the same day. Once approved, your business is officially set up.
Our picks of the best registered agent services
Delaware small business facts
Before you head to the First State to establish a business, you should know something about the state’s economy and small business environment. Here is a look at some of Delaware’s small business facts from the U.S. Business Administration:
- The state has 84,675 small businesses that make up 98.4 percent of all of Delaware’s business economy.
- There are 187,221 workers in Delaware who are employed by small businesses, which make up 46.7 percent of all of the state’s workers.
- The unemployment rate was 14.3 percent in 2020, up from 3.6 percent in 2019. Even so, it was less than the national average of 14.7 in 2020.
- Self-employed people who had incorporated businesses earned a median income of $49,881 in 2018. Self-employed people who had unincorporated businesses earned $21,908 as a median income.
- The top industries in Delaware are healthcare and social services, accommodations and food service, construction and retail.Those four industries employ 95,645 people in small businesses.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Delaware:
Why is it so important to check on business name availability?
Delaware will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
Can the business be its own registered agent?
Businesses that are physically located in Delaware can legally act as their own registered agent. If the registered agent is someone outside the entity, you will need to contact them to tell them they are your choice.
There is also a list of registered agents in Delaware on the state corporations website and you may choose from the list to meet state standards. Those on the list may have their own fees.
Is Delaware business-friendly?
The state has a court and law system that is friendly to businesses. It has a variety of businesses that can be good for business-to-business contracts. The median incomes are high enough to have strong sales, depending on the business.
Why would it be good to incorporate a business in Delaware?
There are several advantages of incorporating in Delaware, which is why many businesses outside the state do file their registrations there. Residency isn’t required and the filings are quick to get approved. There are enormous privacy protections in that you don’t have to list all your officer’s and directors’ names on state forms. The state has numerous tax benefits for businesses.
There is a corporation court that deals only with corporation cases. Judges in this court have corporate law expertise and their rulings are fairly predictable.
Also, you can have a basic corporate structure where one person is the shareholder, officer, and director of the business.
When is a business license required in Delaware?
Anyone who does business or provides a trade in Delaware must have a business license from the Delaware Division of Revenue. This includes those businesses who are physically in Delaware but do business outside the state. You must have a business license at the time you start doing business in the state.
Where else do I need to register to start a business in Delaware?
Besides registering Articles of Organization and registering with the Department of Revenue, you must also register with local entities to ensure you have their permitting and licensing.
You must obtain a federal employment identification number from the IRS. Additionally, you must also register with the Delaware Division of Unemployment Insurance as well as the Delaware Offices of Worker’s Compensation if you have employees.
How long does it take the State of Delaware to approve my LLC formation?
Most states take up to 10 days but Delaware can approve it the same day in some cases. The state’s speed in its approval process makes it advantageous to start a business there.
Can I check the corporate status online?
Yes, the initial search will give you whether they are active or inactive but you can check their actual status for a $10 fee for the status or a $20 fee for more detailed information such as franchise tax assessment and current filing history.
Do I have to live in Delaware to register a corporation there?
No, you don’t have to live in the state to register a business in Delaware. However, you must have a resident agent who does live in the state. That can be an individual, a foreign corporation, or a domestic corporation who can do business and who has a business office that matches the corporation’s registered office.
What do I do if my business is registered in another state or jurisdiction?
Those corporations formed in another state or jurisdiction must first file a “foreign qualification form” with the state corporation division. You must also submit a certificate of existence from the state where your corporation is registered.
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