With the end of the year approaching, you may consider incorporating in Delaware. Decide to form a Delaware corporation to get your firm off to a good start. For a good reason, the Delaware Corporation is the most common company structure in the United States. The owners of small businesses may benefit from forming a Delaware corporation because of the limited responsibility it provides them from business debts, the ease with which they can sell their shares in the firm, and the latitude it provides them in allocating company profits among shareholders.
Fewer individuals understand that the actual procedure for forming a Delaware company may be completed in about 10 minutes using just a computer and access to the necessary information. Since December is just around the corner, you’ll have plenty of time to complete it before the year’s end celebrations begin. Some suggestions to make it happen more easily follow.
Come Up With a Good Name for Your Company
It is critical to the success of your business that you choose an appropriate name for your firm. A company name is what customers, clients, and potential investors will see when interacting with your storefront, business cards, website, and print advertisements. It is how potential clients will see you and how they will locate you in the marketplace.
Suppose you want to undertake any marketing or promotion. In that case, it is of the utmost importance that you choose a name that can be spelled easily and is short enough that it will not be abbreviated in printed publications such as newspapers. You want your consumers to be able to locate you without much difficulty and in a short amount of time so that they can take advantage of what you have to offer them.
Draft Your Articles of Incorporation to Form a Delaware Corporation
This may be accomplished by using one of the numerous free online forms available, such as the Delaware Corporation Wizard or Business Filings. These online services will guide you through the form step by step, making it easy for you to download. Before downloading anything, you should verify every piece of information. Before submitting the paperwork to the state for filing, it is recommended that you have your attorney go through it to catch any errors. Your articles are, for all intents and purposes, the business plan for your firm; they explain to everyone who reads them what sort of organization you want to create and how it will function.
Appoint Directors and Officers
You’ll need at least one director, often the CEO of the company, and a secretary (or assistant secretary). The management of your corporation or Limited Liability Company will fall within the purview of your board of directors. Any significant business decisions, such as staffing levels or capital expenditures, might be delegated to the board of directors.
A single director may be sufficient for a small group of individuals, while many leaders may be necessary for a larger group working on a complex project. The names you give your corporation will appear on all official paperwork, so choosing ones that reflect your goals is vital. Corporation names are specific to the state in which they are registered, so it’s a good idea to talk to an attorney with experience in this area before settling on a name.
Fund Your Corporation
To form a Delaware corporation, you will need a minimum of one thousand dollars. This is referred to as the minimum quantity of capital stock. While it is not required to run the corporation (the corporation may function without it), it is strongly advised that you have access to this money when you first launch your company. There are two methods through which you may provide financial support for your Delaware Corporation: You have the option of paying for it out of your funds.
Another option is to use a specialized loan known as an “accredited investor loan.” The “Accredited Investor Network” is the organization behind establishing this loan (AIN). AIN loans feature fixed interest rates ranging from 10% to 17% APR, and there are no fees other than the taxes and filing charges involved with incorporating, which will be between $150 and $400. The APR is the annual percentage rate.
File Your Initial Certificate
Get a Certificate of Good Standing by meeting the deadline for filing your first certificate and other company paperwork. If you don’t, anybody dealing with your firm might run into issues, including not being able to legally enforce corporate decisions or even finding out how long it’s been in operation. Creating a company is simple, but it may take several weeks before your business is formally established. Certificates of Incorporation (Form CS) must include the necessary information and requirements to be filed.
If you want to start your own business, you might ask yourself, “How do I form a Delaware corporation?” It’s a good question, and we’re happy to help. The answer involves contacting the Corporation Center at (800) 580-4870 for more information.