Are you interested in launching a new company but feel you have no idea how to start things? Forming a legal company is the first stage, and one of the most advantageous alternatives available to small enterprises is to incorporate it in the state of Delaware. In this article, we will walk you through the process of Delaware business corporation and give some resources to help you get started. Getting your company off the ground in Delaware by establishing it as a corporation is one of the most effective ways. Continue reading to learn all you need to know to get your company off the ground in Delaware! The following are some steps that will assist you in getting started.
Choose A Corporate Name And Reserve It With The State Of Delaware
Pick a name for the corporation and file a reservation with the state of Delaware. It’s simple to incorporate a company in Delaware since the state is a pioneer in developing adaptable corporate legislation. If you do not mislead yourself or your company in any way, shape, or form, you are free to use whatever name you want (including one already trademarked!).
It’s crucial to remember that reserving your company name via registration doesn’t give you any legal claim to using it; it only prevents anybody else from using it. It’s a good idea to reserve the name you like before submitting your application in case it has already been taken. Changing your company’s name later may be quite costly and complicated. Therefore it’s best to change it now rather than later despite the upfront costs.
Draft Your Company’s Articles of Incorporation
Articles of incorporation are the second stage in setting up a Delaware business corporation. By-laws, or internal regulations, define the framework under which a business functions. Articles of Incorporation are required before forming a company and should be drafted properly. Your company’s name will be derived from these guiding principles, which will also serve as the basis for all management decisions. Additionally, they provide you with paperwork to submit to the state to formally establish your business. Articles may be as straightforward or complicated as you choose.
Information such as the company’s name, address, the reason for establishment (what sort of business it will be), and the names and addresses of the original board members are often included. You’ll also need to submit an “Incorporator’s Affidavit,” which is essentially a statement confirming that you have the permission of the company’s stockholders to use their name in this capacity and that you won’t be using the name fraudulently or illegally.
Appointing Initial Directors and Officers for A Delaware Business Corporation
Directors are the highest executives of an organization and are in charge of running the Delaware business corporation. While the president and vice presidents handle day-to-day operations, the board of directors is responsible for the company’s long-term direction. The board of directors appoints the top executives, known as “officers,” of a company. While Delaware does not require its directors to be locals, it restricts who may serve on a company’s board of directors.
To avoid legal complications, businesses should establish a board of directors consisting entirely of Delaware residents before incorporating it into the state. Generally, a board’s directors must be impartial to one another; however, non-profit organizations in Delaware may have boards made up solely of independent directors because of this provision in Delaware law. Consult a lawyer to ensure your non-profit organization’s board of directors legally complies with tax regulations if it includes outsiders.
File Articles of Incorporation With The State Of Delaware
The next thing you need to do to establish your very own company in Delaware is to submit what are called articles of incorporation to the state. Articles of incorporation must be signed by a person authorized to act on behalf of the company and must contain information about the firm’s directors and officers. Additionally, the articles need to be notarized. And besides thar, they are required to disclose any particular preferences or limits placed on shares.
After the articles of incorporation have been submitted, the next step is registering shareholders and issuing shares. In addition, you need to make sure that you call an initial board meeting as quickly as possible after you have filed your articles. You will want to name several corporate executives at this meeting that you are holding. You could also consider establishing objectives for your new firm and providing an overview of the operational structure that it will follow.
The holidays may be a time of joy, but they can also be difficult to operate a company, especially with clients. A viable option is to register your company in the State of Delaware. At the Corporation Center, one of the many services we provide is the creation of a Delaware business corporation. To learn more about our Delaware business entity creation packages, please call us at (800) 580-4870.