If you are incorporating your business, there are good reasons to incorporate in Delaware. The fees are among the lowest fees for incorporation in the United States.
Why Incorporate in Delaware?
Delaware does not impose an income tax on corporations or LLCs, and does not impose a tax on small companies’ capital stock. This draws many businesses to Delaware. Along with these factors are the state’s pro-privacy and pro-business laws.
How to Incorporate a Business in Delaware
Selecting a name is step one to incorporating your business. It should be aligned with your company service or product and message. Check in the Delaware state records to make sure that another business is not already operating under the name you want.
Next, you need to appoint or recruit managers or members if your company will be forming an LLC, or directors, if you are forming a corporation.
Delaware Corporation Requirements
Delaware does require all corporations to have one director or more. There are no age requirements specified. Directors can live anywhere, and they do not need to be listed in your Certificate of Incorporation.
Delaware LLC requirements
To form a Delaware LLC, you must have one or more managers or members. As with corporations, there are no age requirements, and they can reside anywhere. Names and addresses of managers or members do not need to be included in your Certificate of Formation.
What Must You Do when You Incorporate in Delaware?
A Certificate of Formation for LLCs or a Certificate of Incorporation for corporations must be filed with the Delaware Department of State.
Delaware does require that corporations registered there must file an Annual Franchise Tax Report. There is a $50 fee for the filing of this report. LLCs must file their Annual Franchise Tax Statements. The fee for this statement filing is $250.
You must obtain any business permits or licenses that are required. These are needed for almost all business types, even sole proprietorships. In some cases, licensing may be required at the municipal level, as well as at federal and state levels.
The Next Steps
Next comes the determination of any other regulatory registrations and obligations. You will need to obtain a Federal tax ID number, called an EIN.
Opening a bank account for your business is a pivotal step of incorporating in Delaware. You are required to keep your funds and assets separate from that of your business. Use your incorporation paperwork or EIN to open your business account.
Depending on your business structure, and on decisions made by management or owners, you must obtain the following variables in order to incorporate in Delaware. These may include professional licensing, vendor contracts, capitalization and loan requirements and zoning and real estate requirements.
You can learn more about incorporation services here.
Why Incorporate in Delaware?
Delaware does not impose an income tax on corporations or LLCs, and does not impose a tax on small companies’ capital stock. This draws many businesses to Delaware. Along with these factors are the state’s pro-privacy and pro-business laws.
How to Incorporate a Business in Delaware
Selecting a name is step one to incorporating your business. It should be aligned with your company service or product and message. Check in the Delaware state records to make sure that another business is not already operating under the name you want.
Next, you need to appoint or recruit managers or members if your company will be forming an LLC, or directors, if you are forming a corporation.
Delaware Corporation Requirements
Delaware does require all corporations to have one director or more. There are no age requirements specified. Directors can live anywhere, and they do not need to be listed in your Certificate of Incorporation.
Delaware LLC requirements
To form a Delaware LLC, you must have one or more managers or members. As with corporations, there are no age requirements, and they can reside anywhere. Names and addresses of managers or members do not need to be included in your Certificate of Formation.
What Must You Do when You Incorporate in Delaware?
A Certificate of Formation for LLCs or a Certificate of Incorporation for corporations must be filed with the Delaware Department of State.
Delaware does require that corporations registered there must file an Annual Franchise Tax Report. There is a $50 fee for the filing of this report. LLCs must file their Annual Franchise Tax Statements. The fee for this statement filing is $250.
You must obtain any business permits or licenses that are required. These are needed for almost all business types, even sole proprietorships. In some cases, licensing may be required at the municipal level, as well as at federal and state levels.
The Next Steps
Next comes the determination of any other regulatory registrations and obligations. You will need to obtain a Federal tax ID number, called an EIN.
Opening a bank account for your business is a pivotal step of incorporating in Delaware. You are required to keep your funds and assets separate from that of your business. Use your incorporation paperwork or EIN to open your business account.
Depending on your business structure, and on decisions made by management or owners, you must obtain the following variables in order to incorporate in Delaware. These may include professional licensing, vendor contracts, capitalization and loan requirements and zoning and real estate requirements.
You can learn more about incorporation services here.