Have you considered forming a corporation in Delaware but don’t know if it will best serve your interests? Does it feel like all of the entrepreneurs you read about or talk to have formed a corporation in the state? Delaware is one of (if not the most) popular states from which to start a corporation or other type of business entity. There are many reasons for that. Here at The Corporation Center, we’ve assisted many in starting a business entity in Delaware.
Embarking on the journey of establishing a corporation in Delaware is a significant decision that requires careful consideration of various factors. When launching a new company, one of the critical choices you’ll face is selecting the appropriate organizational form from a legal perspective.
Why Delaware?
Delaware stands out as a preferred state for incorporation due to its streamlined processes, cost-effectiveness, and tax framework conducive to commercial enterprises. Moreover, over half of all publicly listed corporations in the United States call Delaware home, a testament to its business-friendly legal environment.
What’s the Right Business Structure to Form in Delaware?
In Delaware, the process of incorporating your company is straightforward, offering two primary options: Limited Liability Company (LLC) or C Corporation. Opting for an LLC shields your assets from potential liabilities but may lack certain advantages like tax deductions or stock sales.
On the other hand, forming a corporation in Delaware provides the benefits of standard corporate structures, including stock ownership, tax incentives, and liability protection.
Does the Name of My Company Matter?
Yes. The chosen name should be distinctive and not already in use or too similar to existing businesses registered with state authorities. Researching existing Delaware-registered firms can help you craft a unique and credible business identity.
Once you’ve settled on a name, notify the Corporation Center, providing essential details such as your firm’s address and the contact information for your registered agent.
What’s the Actual Process for Incorporating in Delaware?
You can find all of the forms you’ll need right here at our site. Simply click on “Delaware” on the left of our page and work your way down to “Corporations.” There, you’ll find four separate options. Choose the one that’s most right for you. If you have any further questions about this, don’t hesitate to reach out to us.
Do I Have to Draft Bylaws?
Having a set of bylaws is imperative for the state to accept your articles of incorporation. Bylaws outline the operational framework of your business, addressing essential aspects such as the number of required board members, frequency of meetings, and procedures for removing officials.
Clear guidelines and consequences for non-compliance ensure transparency and prevent ambiguity regarding the necessary actions or repercussions for violations.
Can I Only Use The Corporation Center for Forming a Corporation in Delaware?
Absolutely not. There are many, many other business entities that can be formed here at The Corporation Center. For example, while our Delaware forms are some of our most popular, we can help with forming a business entity all throughout the country. To see how we can help, click here.
