Starting your own business calls for a lot of thought and consideration. At the outset, one of the most significant decisions you will have to make is how you will structure your business. For example, if you are going into business with a colleague, you might opt for a general or limited partnership. If you are going it alone, a sole proprietorship may make the most sense. Many people select limited liability companies (LLCs) due to their tax and liability incentives. If, however, your needs are a bit more nuanced and advanced, you may decide to form a Delaware corporation.
The reasons to form a corporation are often many, and they can depend greatly on the industry in which you are. Most commonly, however, business owners will opt to create corporations because they allow them easy avenues for generating capital. Getting investors can be a bit tricky with LLCs, LLPs, and sole proprietorships. With a corporation, issuing stock or attracting investment is generally a bit easier. Whatever the draw may be for you, if you are seeking to form a corporation, we have all of the forms that you need on one convenient website.
Why Form a Delaware Corporation?
There are many valid reasons why you would consider incorporating into the state of Delaware. For one, it is one of the most business-friendly states in the nation. Over 50 percent of the publicly-traded companies in the United States are incorporated in Delaware, including 65 percent of the companies making up the Fortune 500.
Delaware has favorable tax and liability laws for companies, which are a large part of its appeal. The state also utilizes what is called the Court of Chancery, which is the oldest business court in the United States. The Court of Chancery relies on judges instead of juries which makes for a much more expedited legal process.
Filling Out a Certificate of Incorporation
If you have done the necessary preliminary work–deciding on a name, appointing a registered agent, etc.-–it will be time for you to complete some paperwork. Namely, you will need to file a “Certificate of Incorporation – Stock Corporation” document with the Delaware Secretary of State’s office. This form will ask for some relevant details about you and your business and can be sent via the United States Postal Service with a cover memo.
Once this document has been filed, you will want to take care of some additional matters. You will need to appoint a board of directors and draft corporate bylaws pertaining to how your business will be managed. If you are opting to issue stock, you can also do that once your enterprise has been incorporated.
Let the Corporation Center Assist You Today
If you would like to forgo the process of sending your documents in the mail, the Corporation Center can help. Simply click on the Delaware option on our side navigation, where you will be led to a host of business-related web forms. You can then select the forms you need, complete them, and submit them for processing in a prompt, efficient manner. To learn more, contact us by phone or email today, or visit our FAQs page.