All businesses go through a process before they can get off the ground. Find out how to establish an LLC in the state of Delaware.
Incorporating in Delaware gives you a bunch of benefits that you cannot obtain as compared to other states. First, you enjoy corporate-friendly state laws that allow you to negotiate a tax payment scheme that is most suitable to your company’s capabilities. Also, by incorporating in Delaware, you enjoy cheaper filing fees and annual franchise tax versus other states which can range from $100 to $300 on top of the $350 annual franchise tax fee. If you wish to pursue your company’s incorporation in Delaware, you must be well-informed of the process you need to undergo.
- When you form a Delaware Limited Liability Company (LLC), the first thing that you need to do is clearly state the nature of your business. If you have an existing company and you just intend to incorporate it, describing the nature of your business should not be a problem. Prepare a portfolio detailing the type of business you are operating, specific cluster of clients, and your visions within your company.
- Consult this with your attorney who is well-versed with Delaware General Corporation Law. After which, contact a Delaware agent who is authorized to conduct business within the state. Since most business owners who incorporate in Delaware do not necessarily have a physicall address in the state, it is a must to hire an agent to receive and send your legal documents when the state government requests for it. As long as you do not own a business that is physically located in Delaware, you should continually contract a Delaware agent. Before you proceed with the filing, you must secure and complete all forms of Certificate of Incorporation.
- Once done, formulate your corporation’s name and pay a one-time nominal fee of $75 to reserve your entity’s name. You can do this by reserving online and paying via credit card. The government can hold your business name up to 120 days until you have finalized everything and have submitted all the required documents. Delaware state government does not require publishing of your petition for incorporation.
- When you apply for incorporation, you must also file an annual tax certification on or before June 1. You must also secure your Employers Identification Number (EIN) as one of the major requirements for incorporation. The EIN is also needed when you remit taxes to the government as your employer’s share.
- It is not required by law to disclose confidential information such as the names of the members of your Board of Directors since Delaware corporation laws value anonymity of your company’s profile. However, take note that although Delaware welcomes every business opportunity, the government employs professionals to conduct background checks on each application to ensure that it is not fraudulent.
Most Fortune 500 companies are incorporated in Delaware. With these, they are benefitted with a diverse array of opportunities because Delaware is open to all possibilities as long as companies abide by its General Corporation Law.