If you are looking to form your business in the state of Delaware, you are potentially in an elite company. The majority of the companies that make up the Fortune 500 are based in Delaware, and for good reason. The First State, beyond being a quiet enclave of the mid-Atlantic, is a major hub of global commerce, and this is largely due to the business-friendly conditions that the state offers. From the benefits of the Chancery Court to relatively low taxes, there are a number of valid reasons to consider setting up a shop in Delaware. At Corporation Center, we can help you form your Delaware corporation online using our simplified web forms and SSL-encrypted web portal.
Why You Should Consider Forming a Delaware Corporation Online
The needs of every business are different. In determining how you want to legally structure your business, you are going to want to thoroughly assess your own goals and concerns. While the aim of every business is to experience continued growth, some businesses place a special emphasis on this factor. While such growth is exciting, it can also be expensive. You need to make sure that your company has the resources necessary to hire more top-level talent, open a new location, or develop a comprehensive, multi-channel marketing plan. By incorporating your business, you can better position your organization to raise outside investment, as a corporation affords you the ability to issue stock. Offering fractional shares of ownership in your company allows potential investors to benefit from your continued success, while also giving your business a needed cash infusion.
In order to create your Delaware corporation online, there is a set process that you will need to adhere to. Your first order of business will be to select a name for your corporation. In the state of Delaware, it is a requirement that your corporate name includes one of the following terms: “Fund,” “Club,” “Foundation,” “Company,” “Association,” “Corporation”,” Limited,” “Union,” “Institute,” or “Syndicate.” A suitable abbreviation of one of those words is also acceptable. Your business’s name must also be unique from other businesses incorporated with the Delaware secretary of state.
Next, you will need to file a document called a “Certificate of Incorporation – Stock Corporation” with the Secretary of State’s office. This form should include a filing cover memo, also. This document should include some information about your business, such as its name and address. You will also need to provide the contact information for your incorporators, as well as your registered agent. Your registered agent is the individual who will accept all services of the legal process on behalf of your business. Lastly, make sure to include the number of shares you plan to issue.
You can complete your certificate of incorporation in just minutes using our streamlined, easy-to-fill forms. Simply click on the corporation option above and follow our clear prompts.
The Benefit of a Delaware LLC
A limited liability company (LLC) is its own legal entity. LLCs are especially popular among entrepreneurs because they do not take much work to create, they require very little maintenance, and they come with a number of valuable incentives. If you are launching a new business, you may want to enjoy the benefit of a Delaware LLC.
With an LLC, you and the other members (owners) can enjoy the protection of limited liability. This means that should your Delaware LLC go bankrupt or face costly lawsuits, you will be able to protect your personal assets from any legal judgments. As this takes a great amount of risk off the table, it is no wonder that many business owners seek the benefit of a Delaware LLC.
In an LLC, you will also receive “pass-through” status with the Internal Revenue Service (IRS). This means that unlike in some corporate structures, profits generated by your business will flow through to the members of the LLC before being taxed.
To create an LLC in Delaware, you will need to select a unique name for your business and appoint a registered agent. With those items in place, you can move ahead with filing what is called a “Certificate of Formation of Limited Liability Company” with the Delaware Division of Corporations. This document should include some basic information about your company, its members, and your registered agent. You can use our web forms to complete and process this document online.
Partnerships and More
If you are entering into a partnership, you may want to add a layer of legal protection. You can do this by creating a limited partnership (LP), a limited liability partnership (LLP), or a limited liability limited partnership (LLLP). Each structure has its own merits, and the one that is right for you will depend on the needs of your business as well as your industry. No matter the type of business structure you would like to create in Delaware, we have online forms to help you. To learn more, contact us by phone or email today.