How to register a business name in Delaware as a Corporation?
What is a Delaware Corporation?
Delaware Corporation is a business entity where ownership is represented by shares of stock. The business is managed by a board of directors who are not personally liable for obligations and liabilities of corporation.
Here are some good reasons to open a corporation in Delaware
- Delaware is the best state to incorporate a startup
- Delaware state designed favorable laws for corporate governance
- Very clear and consistent legal system
- State tax laws that favor companies not doing business in the state
- For the non-resident company looking to expand into the US market, Delaware is a great base to start from.
Where to register a corporation in Delaware?
The Delaware Division of Corporations acts solely in registration and administrative capacity and does not provide legal advice. All type of business should be registered with Delaware Division of Corporations including corporations.
Steps to start a corporation in Delaware
- Appoint a registered agent for a corporation
- Choose and apply online to reserve the name for a corporation
- Decide the purpose of the corporation
- Decide the number of shares of stock
- Prepare and Submit articles of incorporation
- Certified copies and certificate of Status/Good Standing
- Prepare bye-laws of the corporation
- Open a Bank account (optional)
- Obtain a federal identification number or EIN
- Register with a Delaware department of labor and division of revenue.
- Satisfy zoning requirements and compliance with other local authorities
- Comply with corporate annual report and franchise tax payments
Who is the registered agent of a DE corporation?
In Delaware, every business entity is bound to have registered agent. The registered agent may be an individual resident or any business entity. The registered agent must have a physical street address in Delaware. If the business is physically located in Delaware, then the business may act as its own registered agent.
How to reserve corporation name online in Delaware?
You can reserve corporation name online for the period of 120 days in Delaware.
How to draft the purpose of the corporation?
You can draft the purpose of a corporation by answering these questions. Why are you forming a corporation? What is the logic behind your initiative? What corporation will do? What are the aims and objectives of the corporation etc?
How do decide shares of stock for a corporation?
There is no limit for authorized shares of stock. You may decide as many shares and its par value you want to register for incorporation. But this must not be nil or zero.
How to file articles of incorporation in Delaware?
The articles of incorporation must include the corporate name, address of registered office, the purpose of the corporation, authorized share stock, and the name address and signature of incorporator.
You may either mail or fax your completed request to Delaware division of the corporation.
How to obtain certified copies and certificate of good standing or good status?
Some Financial Institutions and banks will require a good standing certificate and/or a certified copy of your new entity filing. You may order a Certificate of Status or Certificate of Good Standing at the time of filing your new entity by indicating this request in the comment section of the Document Filing Sheet.
How to prepare by-laws of a corporation?
Bye-laws should be clear and precise. You may draft from a legal consultant or CPA. Simply bye-laws include all about the internal process of the corporation you can draft bye-laws by including all internal policies and procedures. Bylaws are an internal corporate document. Bye-laws are not filed with the state.
How to open a bank account for a corporation?
Any officer of the corporation may obtain a bank account for a corporation on behalf of the corporation after getting the permission from the directors.
How to obtain EIN for a DE corporation?
You may apply with the registered agent for employer identification number (EIN) from IRS. IRS is the issuing authority of EIN. EIN is mandatory for corporations. You may also apply online through the official website of IRS.
How to register a corporation with Delaware department of labor and division of revenue?
In Delaware, you can register your corporation with the division of revenue and the department of labor via One Stop Business registration and license. To ensure that your registration process goes smoothly, you should have the following information available before you start.
Business and trade names, location and mailing addresses, federal employer identification numbers, contact person, the taxable year ending date of the business, type of entity, state and date of incorporation, parent company name, and their federal employer identification number.
Further, you will need a credit card to purchase your business license, your Workers Compensation Insurance Policy etc.
What other compliance are needed in Delaware for starting a corporation?
In addition to registering at One Stop, you will need to ensure compliance with local zoning laws, the Division of Professional Regulations, the Departments of Agriculture, Health, Natural Resources & Environmental Control, State and Transportation as necessary.
What are the annually statutory requirements for corporation in Delaware?
- Registered Agent
- Pay franchise tax
- Corporate Annual report
What is Delaware Franchise Tax?
The Delaware Franchise Tax is the fee imposed by the state of Delaware for the right or privilege to own a Delaware company. The tax has no connection with income of the corporation or its activities it is simply required by the state of Delaware to maintain the good standing status of your company.
What is a Gross Receipt Tax in Delaware?
Gross receipt tax is payable on gross revenue regardless of the source.
What is a corporate annual report for the corporation in Delaware?
Every corporation in Delaware has to file an annual report of its activities and financials. Taxes and Annual Reports are to be received no later than March 1st of each year.
What is the scope of Sale tax in Delaware?
Delaware State has no sale tax.
Register a Corporation other than home State
Delaware resident can create a corporation other than Delaware to conduct business in the other state, but cannot bypass for the tax purposes.
Estimated Corporation Registration Time in Delaware
State of Delaware takes 24-48 hours to register a corporation in Delaware.
How to file a Delaware S Corporation?
Form 2553 is to be filed with the Internal Revenue Service to convert Delaware C Corporation to a Delaware S Corporation.
