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:

• LLC and INC Formation
• Registered Agent Services
• Annual Tax Payment
• EIN (Tax ID)
• Foreign Qualification
• Doing Business As
• Certificate of Good Standing
• Corporate Document Copies
• CTA Filing Service
• Amendments
• Kits, Seals & Corporate documents
• Dissolution
• Virtual Office Services
• Boat Registration
• UCC Services

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.

State of Delaware Offers a Unique Climate for Business Formation

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.

 

 

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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.

2. 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.

3. 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. 

4. 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.

5. 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.

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  Are you thinking of forming a business? 

Find the answers to all of your major incorporation questions in our new eBook