When you decide to start your own business, you are suddenly faced with a multitude of important decisions. At the very beginning, you will of course need to decide what service or products you are providing to the market. As a part of your comprehensive business plan, you will also want to identify who your typical consumer is–what do they do? Where do they live? Understanding your market is key. You will also need to determine where you will locate your business. Whether you are opening a retail storefront or signing a lease on office space, the state in which you decide to locate your business matters, as there are tax and legal considerations to think about. For many, when starting a limited liability company (LLC), Delaware has a strong appeal. If you are pondering starting a Delaware LLC, you can use our forms to process your certificate of formation online.
If you have been in the business world for any period of time, you may have at least a vague knowledge that Delaware is uniquely hospitable to businesses. Known as the First State, this relatively unassuming Mid-Atlantic enclave is home to the majority of the companies making up the Fortune 500 list. The reasons for this are generally two-fold. For one, Delaware offers low corporate taxes, which many businesses find appealing for obvious reasons. For another, Delaware is home to what is known as the Chancery Court, which is one of the oldest legal systems in America. In Delaware’s Chancery Court, matters of business law are not determined by juries, but rather by judges with a unique grasp of this area of the law. This creates a favorable legal climate for LLCs, partnerships, corporations, and other businesses.
Starting a Delaware LLC Online: The Basics
There are a couple of reasons to consider forming an LLC in Delaware. An LLC grants its members the protection of limited liability. This means that should your business face bankruptcy or lawsuits, you can protect your personal assets from any possible legal judgments. LLCs are also afforded “pass-through” status with the Internal Revenue Service (IRS). This means that profits earned by your business will not be subject to taxation until they pass down to the members of the LLC, who will then pay taxes on their personal income.
If you have weighed the pros and cons and decided that a Delaware LLC is right for you, there will be some paperwork to complete. First, you will need to select a name for your LLC that is not already registered with the Delaware Secretary of State’s office. Next, you will need to complete what is called a “Certificate of Formation of Limited Liability Company.” This document should include the name and address of your business, as well as some details about the LLC’s members and registered agent.
Process Your Certificate of Formation Online
You can use our online forms to draft your certificate of formation in just minutes. At Corporation Center, we have streamlined web forms for creating LLCs in all 50 states. To learn more about what our service can do for your business, take a moment to browse our website, or if you have any doubts, contact us by email today.