You’ve undoubtedly heard of the “Delaware corporate register” if you consider incorporating a company in that state. It’s a registry of all the businesses registered in a particular area. In this instance, Delaware is a popular choice since setting up a business there takes such little time and effort.
Since there is neither a franchise nor an income tax in Delaware, filing your business there will save you money. Both taxes must be paid if you must register in a different state.
So, incorporate in Delaware to save money on the Delaware corporate register. You may be surprised at how simple it is. Here are some suggestions:
Choose A Business Structure That Best Fits Your Needs And Goals, Such As An LLC Or C Corporation.
You may be wondering whether company structure is best if you are starting as a business owner or if you are starting over. New and established firms in Delaware may take advantage of one of the country’s most welcoming and adaptable business climates.
The first step is to decide what legal form your company will take. The extent to which one’s assets are protected while doing business varies depending on the business structure chosen. Both C and S corporations formed in Delaware enjoy preferential federal corporate income tax treatment. Ultimately, how you want your firm to be regarded under state and federal law is the deciding factor in which business organization to choose. It would help if you also thought about whether you want to create a life estate plan for your company assets to guarantee their survival after your passing. When you’ve made up your mind, it’s time to act!
Consider Going with an Online Incorporation Service like Us, the Corporation Center
Forming an LLC using an online formation service, such as the one we provide here at the Corporation Center, is the quickest and easiest method to get started with a limited liability company. We can assist you in answering any questions you may have about the formation of an LLC, and we can also handle all of the necessary paperwork for you.
You must provide us with some basic information about your company and pay any applicable costs. After establishing your limited liability company (LLC), you will be given a certificate of formation that verifies the legal registration of your business in the state of Delaware.
File Early During the Delaware Corporate Register
The Articles of Incorporation of your company must be filed with the state within a specific period, which varies from state to state. If your firm fails to register with the state in time, you may be subject to fines, and the state will not recognize your company as a separate legal entity. Make sure you apply for an EIN and open a company bank account simultaneously with your articles of incorporation.
Another crucial step is having your company submit its yearly report(s). The deadline for submitting the first articles and the annual information might vary from state to state. In New York, for instance, you must file your first annual report within one year of incorporation, but you only have to file articles ten years later.
Start With a Simple Name
Your company’s name represents your brand, so it’s essential to get it just right. There is a lot to think about; a company’s name is often one of its most crucial aspects. You don’t want to select anything so intricate that no one can say it or remember it, but you also want to pick something that will be easy to spell or is too familiar.
Choosing a name with two or three syllables is an excellent first step; you want the name to be shorter and easy to remember, but you also want it to be brief enough to say. If you can help it, try to avoid using hyphens and digits instead of their equivalent words; although they may appear to save space, they add complexity. Choose a term that is short and easy to pronounce.
Use an EIN Instead Of Using Your SSN or EIN
You have the option of either using your own Social Security number (SSN) or getting an Employer Identification Number (EIN), which is the number that the Internal Revenue Service (IRS) gives to firms when they register for tax purposes. The EIN is often suggested since it is more long-lasting than your Social Security number (SSN), although both of these numbers have their pros and cons lists.
When you use your Social Security number for your business, it is simple to remember and might give the impression that your company is on the smaller side.
Contact the Corporation Center for help with your Delaware filing requirements. We can document the corporation forms with incorporation filings and have all the conditions you need to start your own business. Call us if you have any questions about incorporating in Delaware and the Delaware corporate register.