How to Incorporate a Business in Delaware

Posted by American Ltd on Apr 29, 2024 8:00:00 AM

When it comes to incorporating your business, choosing the right state can make a significant difference.

Delaware stands out as a preferred destination for business incorporation, offering a range of advantages that attract entrepreneurs from across the globe.

Let's explore why Delaware is a top choice and the steps involved in incorporating your business in the First State.

Top Reasons for Incorporating in Delaware:

General Corporation Law: Delaware's General Corporation Law is considered the gold standard for corporate law. Its clarity, flexibility, and business-friendly provisions make it the preferred choice for corporations.

Business-Oriented Legislature: Delaware's legislature is renowned for its expertise in corporate law. The state regularly updates its statutes to meet the evolving needs of modern businesses, ensuring a favorable regulatory environment.

Court System: Delaware boasts a specialized Chancery Court dedicated to handling corporate matters. With expert judges and a streamlined process, the court provides efficient resolution of corporate disputes, enhancing business confidence.

Case Law: Delaware's extensive body of corporate case law provides valuable precedents for corporate officials and legal counsel. The state's rich legal history offers clarity and guidance on a wide range of corporate issues.

Division of Corporations: Delaware's Division of Corporations is known for its efficiency and responsiveness. With expedited filing options and a commitment to customer service, the division facilitates smooth incorporation processes.


Steps to Take When Incorporating Your Business in Delaware:

Choose a Name: Select a unique and memorable name for your business that complies with Delaware's naming requirements.

Appoint Directors/Managers: Determine the individuals who will serve as directors or managers of your corporation or LLC.

Obtain a Registered Agent: Designate a registered agent with a physical address in Delaware to receive legal notifications on behalf of your business.

File Incorporation Paperwork: Prepare and file the necessary documents, such as the Certificate of Incorporation or Certificate of Formation, with the Delaware Department of State.

Review Annual Report and Franchise Tax Requirements: Understand the ongoing reporting and tax obligations for corporations and LLCs in Delaware.

Obtain Required Licenses and Permits: Ensure compliance with state and local licensing requirements for your business activities.

Complete Other Regulatory Obligations: Address additional regulatory requirements, such as obtaining an Employer Identification Number (EIN) and opening a business bank account.

Consider Additional Start-Up Considerations: Depending on your business's structure and operations, address additional considerations such as real estate requirements, vendor contracts, and professional licensing.

Incorporate with American Incorporators:

Let American Incorporators help your business get up and running as a viable corporation or limited liability company (LLC). All of our services are available in all 50 states + DC. We are here to help your business from its inception and as it continues to grow and change over time.

American Incorporators Offers:

What else do we offer?

Our time, our commitment, and most of all, a level of personal concern for your incorporation order – or any other service you buy from us. We'll make sure everything is delivered in a professional and timely fashion. (If it isn't, we want to hear about it so we can rectify the situation.)

Call us at 800.441.5940 or chat online if you have any questions. We're here to help.

Topics: Tips & Tricks, Delaware, Entrepreneur