Are you toying with the idea of starting a business of your own? If so, it is a commendable pursuit–entrepreneurship is a rich American tradition, and in many ways, it is the backbone of our economy. Of course, it is not unusual for someone to tire of working for others, using all of their expertise and experience only to pad someone else’s bottom line. By creating your own endeavor, you can be your own boss, set your own hours, and earn as much as you are willing to work for. That is, though, a bit of an oversimplification. Starting your own business and succeeding at doing so take a lot of long hours and hard work. Just to get your business up and running, you may need to say “Goodbye” to your free time for the foreseeable future. In exchange for those nights and weekends spent toiling away, however, you can achieve the professional satisfaction that can only come from launching your own business. As your organization continues to grow and take shape, the onus is on you as the founder to position it for success. This can mean creating a legal structure such as a corporation. By learning a bit about how to form a Delaware corporation online, as well as the perks that come with it, you can make a more informed decision on what is right for your business.
You may be wondering yourself, why Delaware? If you are like many, you may not put much thought into this small, unassuming state nestled against the mid-Atlantic. In truth, however, the First State is known for much more than its role in America’s founding–it is also a major hub of commerce. There are a number of reasons why the majority of the companies in the Fortune 500 are headquartered in Delaware, and if you are forming a corporation, you would be wise to consider this state as well. One major benefit to creating a business in Delaware is that the state employs what is called the Chancery Court. As one of the oldest legal systems in the country, the Chancery Court utilizes judges who are uniquely versed in business law, as opposed to juries of citizens. As you may be able to imagine, this can create a very friendly legal climate for business. Delaware also has relatively low corporate tax rates and is in close proximity to New York City. With these benefits in mind, creating a Delaware corporation online can be a bit of a no-brainer for savvy entrepreneurs.
How to Form a Delaware Corporation Online
If you are no stranger to the business, you may have at least a vague understanding of what it means to legally structure a business. There are, of course, various ways that you can go about this, and the structure that you ultimately land on should carefully consider the aims of your business. For some, it makes sense to form a limited liability company (LLC). LLCs are fairly easy to set up, come with valuable tax incentives, and do not call for much in terms of maintenance. Other businesses may opt for a general partnership (GP)–this technically occurs any time two or more parties go into business together. If your business has lofty aims and may require quick access to capital, however, it may be worth considering forming a Delaware corporation online.
When you form a corporation, you are separating your business as a distinct legal entity from its incorporators. A corporation enjoys many of the same rights and privileges as an individual, in that it can own real estate, lend or borrow money, and pay taxes. Depending on the corporate structure you select, you may also receive “flow-through” status with the Internal Revenue Service (IRS). This allows you to let gains and losses flow down to your business’s incorporators before they are subject to taxes. This can also be done with deductions and credits.
How to Start Your Corporation Today
To get your Delaware corporation off the ground, you will first need to select a name that is clearly distinguishable from other businesses incorporated in the state. Next, you will want to appoint a registered agent, which is the individual responsible for receiving all legal correspondence on behalf of your business. With those measures taken, you can then move ahead with drafting your certificate of incorporation. This document, which must be filed with the state, should include some fundamental details about your business, including its name and address. You will also need to provide some background on your incorporators, and your registered agent, as well as how many shares you plan to issue.
At Corporation Center, we can help you file your certificate of incorporation online. Simply click on the “Delaware” option from our navigation menu, and you will be brought to a landing page containing all of our online form options. If you have any questions, please feel free to contact one of our customer service representatives by phone or email.