Can Husband and Wife Have a Single-Member LLC in Delaware?
Yes, but only one spouse can be the sole member. Delaware law permits single-member LLCs under 6 Del. C. § 18-201. One spouse may own the LLC as the sole member while the other spouse holds no legal membership interest unless the operating agreement grants them an economic interest. If both spouses want equal ownership, you must form a multi-member LLC instead.
Single-Member Structure
A Delaware single-member LLC requires a minimum of one member (6 Del. C. § 18-201). One spouse can be designated as that sole member. The other spouse has no ownership rights unless explicitly granted in the operating agreement—and even then, they remain a non-member with limited legal standing.
Key benefit: Delaware's charging order protection (6 Del. C. § 18-703) shields the member's LLC interest from personal creditors, limiting remedies to a charging order rather than forced asset sale.
Important caveat: The IRS treats single-member LLCs as disregarded entities for federal tax purposes. The sole member reports all business income on their personal return. This may create unintended tax consequences for married couples filing jointly.
If Both Spouses Want Equal Ownership
Form a multi-member LLC with both spouses as members. Delaware does not require member names in public filings—use the anonymous LLC option under 6 Del. C. § 18-201. The Certificate of Formation lists only the entity name, Delaware registered office address, and registered agent name. Member identities remain private.
Both spouses receive equal (or specified) ownership percentages. Charging order protection applies equally to multi-member structures.
Formation Requirements
File a Certificate of Formation with the Delaware Division of Corporations:
- LLC name (must include "LLC," "Limited Liability Company," or "L.L.C.")
- Delaware registered office street address
- Registered agent name
Filing fee: $110.00
Processing: 2–3 business days (standard); expedited options available ($50–$1,000)
File online or by mail through the Delaware Division of Corporations website.
Next Steps
- Secure a Delaware registered agent and office address (required by statute)
- Draft an Operating Agreement specifying ownership percentages, management rights, and profit distribution
- File the Certificate of Formation online
- Receive Certificate of Good Standing upon approval
Consult a tax professional before formation. Single-member treatment may complicate joint tax filing or estate planning for married couples.
This is general information, not legal advice. Consult a Delaware business attorney for your specific situation.