The State of Delaware is one of the leading constituents states of the USA that facilitates easy registration of national and international businesses. Whether it is getting an LLC in Delaware registered or a corporation, the step-by-step process has been defined by the Delaware Division of Corporations is as below:
Selecting the Business Type: you need first to choose the business type. There are different choices – corporation, limited liability company (LLC), limited partnership, general partnership, statutory trusts, and more. All these business types need to register with the Delaware Division of Corporations. However, if the business type is a sole proprietorship, there is no need to file with the Delaware Division of Corporations.
Appointing a Registered Agent: As per Delaware Law, all corporations must have a Registered Agent representing them. Important aspects of the Agent are:
• The Agent should be a resident of Delaware with a registered street address in the state and can be an individual or a business entity.
• It is essential that the Agent has the license to conduct business in Delaware.
• Newly-formed corporations and LLCs can access a list of registered Agents at the official website of the Delaware Division of Corporations.
• If the newly-formed corporation has a registered address in Delaware, it can be the Registered Agent for the business.
The Agent is responsible for receiving all official intimations and correspondence from legal and government departments.
1. Name Reservation: It is essential to reserve a name for the corporation. The entity name needs to be registered online or in writing and is valid for 120 days with a fee of $75.00.
2. The Certificate of Incorporation: the Certificate and the Formation Forms can be filled out online or submitted by mail. If the form is sent by mail, a covering letter with the entity’s name, address, and phone is required.
3. Submitting the certificate: the completed form can be uploaded online or sent by mail to the Delaware Division of Corporations office at Dover. The filing fees need to be also paid alongside submission. In certain cases of types of corporations, a good standing certificate is essential.
4. Appointing Directors: the initial directors need to be appointed by the incorporator and the same needs to be filled in an Incorporator Statement. It is not mandatory for filing with the state.
5. Filing Annual Tax Report: Incorporated corporations in Delaware must send the Corporate Annual Report and Franchise Tax Payment Report. The fee for filing the report is $25. The Reports should reach the Delaware Division of Corporations office by 1st March every year.
Since the entire process involves multiple steps, and it is crucial to follow the step-by-step process precisely, it is good to consult with trusted Delaware incorporation services.
1. Preparing the Company Bylaws: Bylaws are not mandatory to be filed with the state, but it is good to adopt this. Bylaws help establish the corporation’s operating rules and prove to bankers and creditors the legitimacy of the business.
2. Getting the Employer Identification Number: The EIN is an important aspect as it is required for filing taxes, appointing employees, and for IRS correspondence.
Things to remember:
1. When deciding the name
• The use of words like university, college, banks, etc., should not be used by corporations unless necessary. The word ‘trust’ is also not allowed until relevant.
• Use of the above-mentioned words may involve additional scrutiny by government officials.
Taking help from a company offering Delaware incorporation services is recommended as it helps you name your corporation adhering to the required guidelines.
2. Documents required for the registration of a Corporation in Delaware
• Details of the company directors and shareholders. The share ratio needs to be mentioned.
• Bank account details. Bank accounts from across the world can be used except UAE, Hong Kong, and Switzerland.
• Nominee details.