Top 5 Reasons to Incorporate in Delaware

Posted by American Ltd on Aug 18, 2015 8:30:00 AM

State of Delaware Offers a Unique Climate for Business Formation

reasons to incorporate in Delaware questions about incorporating answers

More than a million business entities have been formed in Delaware, and over 50% of publicly traded companies make their legal home in Delaware (including nearly 65% of the current Fortune 500 companies). But why is Delaware so popular? Most business experts point to Delaware’s long-standing pro-business climate.



Why  Delaware?

  1. The state formation fees are reasonable ($89 for corporations and $90 for LLCs) and companies are formed within 24 hrs (in most cases) without paying additional expediting fees when you use American Incorporators Ltd to prepare and file your document.
  1. Delaware corporate law is well established (enacted in 1899) and reviewed annually so that the most current, advanced ideas in corporate law can be added.
  1. The Delaware Court of Chancery, a special business-only court of expert judges, hears and decides cases quickly and fairly, referencing a case law history over 100 years old. 
  1. The Delaware formation documents require only a general purpose (specific business activity description is not needed); one person can hold all offices (corporation) or can be the sole member (LLC) and does not need to be named on the document.
  1. Financial benefits - no state income tax and no business license required if not located in Delaware; no inheritance tax on stock held by non-residents. Many venture capitalists and angel investors prefer investing in Delaware-based corporations.

  Are you thinking of forming a business? 

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Topics: Delaware, c corp, Reasons to Incorporate in Delaware

What is an LLC

Posted by Cory Josephs on Aug 26, 2014 10:49:00 AM

What is an LLC?IMG 1241

The Limited Liability Company is a relatively new entity type that was developed towards the end of the 20th century as an alternative to a corporation. Modeled after a German entity type (GmBH), the US LLC originated in Wyoming in the late 1970s, emerged in Florida a decade later and by the early 1990s existed in all US jurisdictions. Since that time limited liability companies have steadily gained in popularity largely because they combine liability protection previously reserved for corporations with single taxation of partnerships. LLCs also have fewer requirements than corporations making them easier to maintain. LLC's are separate and distinct from its owners who are called "members."  LLC's do not issue shares of stock like C Corporations and S Corporations. If you would like to read about S Corps and C Corps check out our blog here.

Ownership/ Member details about LLC's

There are 2 ways to reflect ownership of an LLC.  It can be reflected as a percentage or by membership units which are similar to shares of stock in a corporation. The number of members of an LLC is unlimited and members can be individuals, partnerships, corporations, trust, nonresident aliens, etc.

Things to know about LLC's

  • Limited Liability- Absent any specific personal guarantees, the amount at risk for members is limited to their investment in the LLC. The personal assets of the members are generally beyond the reach of creditors. This protection is for all members of the LLC unlike an LLP where one general partner must remain liable for partnership debts. 
  • Tax Benefits- LLC members may also enjoy the same flow-through tax benefits which are applicable to partners of a partnership.
  • Easier to maintain- LLC's are not required to hold annual meeting and to record meeting minutes. LLC's are known for their operational ease.
  • Heightened Credibility- Forming your company into an LLC can increase the credibility associated with your business.



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Topics: LLC Creation, Limited Liability Companies, incorporate now, incorporate today, Asset Protection, s corp, fast incorporation, c corp

What is a C Corporation

Posted by Cory Josephs on Aug 14, 2014 11:43:00 AM

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What is a C Corporation?

A C Corp is legal structure that businesses establish that is a separate entity from the owners and the people that manage it. Corporations are owned by their shareholders, and provide owners limited liability. C Corporations are the most widely type of entity for businesses large and small that have shareholders. 

What's the difference between a C Corp and an S Corp?

All corporations both S and C are started as a C Corp. Once the C corp is formed the business has 75 days to to elect to become an S Corporation.  This election is done with the IRS. More information abour S Corporations can be found Here.

Some things to know if you're thinking about starting a C Corporation

  1. C Corporations may have an unlimited amount of shareholders
  2. Owners do not need to be citizens or residents of the United States
  3. C Corporations shares may be owned by another business
  4. C Corporations are required to have bylaws, hold annual meetings and keep accurate record of the meeting minutes. 
  5. Corporations can raise capital by through the sale of their stock.
If you want to incorporate your company don't worry, American Incorporators Ltd. provides fast and easy incorporation services for you so just give us a call at 800.421.2661 or Click Here for more details.
Form Your LLC Now 

Topics: Corporation Creation, Corporations, incorporation, easy incorporation, s corp, s corporation, starting a business, c corp, create a corporation, what is a c corporation, C Corporation