How to do business registration Delaware?

Incorporating a business or forming a Limited Liability Company in Delaware is a popular choice among many foreign nationals. Entrepreneurs interested to launch their existing or new business in the USA prefer this state when compared to others for various reasons. Getting to know how to do business registration the correct way is important to ensure deriving the advantages and avoiding unwanted hassles.

Reasons for Delaware to be a popular place for business incorporation

Cost of LLC business registration Delaware in this state is considered to be among the lowest. Also, no income tax is imposed by the state on corporations or LLCs. Also, no tax is imposed on small companies’ capital stock. Moreover, the state’s pro-privacy and pro-business laws are what tempt business owners from across the globe to set up their company here.

Steps to consider to incorporate business in Delaware

● Select relevant business name: It should be something that goes well with your brand of services, products and message. Also, your customers should be able to locate easily your business. Do include an identifier like LLC or Inc. to help the world determine whether your business is an LLC or a corporation. Consult the experts concerning naming requirements.

● Appoint/recruit directors (Corporations) or managers/members (LLCs): o LLC requirements:

• Manager/member residence not specified by state.
• Manager/member age requirements not specified by state.
• Only one managers/members required and may be the same person.
• Manager/member addresses and names not required to be listed within Certificate of Formation.
• o Corporation requirements:
• Director addresses and names to be listed within incorporation Delaware Certificate not required.
• Directors’ place of residence not specified.
• Age requirements not specified.
• Corporation is to have 1+ director and officer, and all may be the same person.
• Franchise Tax and Annual Report: Corporations are required to file both by 1st March every year accompanied by a small fee. Generally, franchise tax calculation is determined by authorized share numbers and par value. In case, share numbers exceeds 5,000, then there can be increase in annual fee. Franchise Tax Statement should be filed by 1st June with a small fee.
• File Incorporation paperwork: When registering company in Delaware, the Certificate of Incorporation or Certificate of Formation for the LLC should be filed with the State Department.
• Determine other registrations and regulatory obligations: Be it an LLC or corporation, you need to consider various regulatory and tax obligations. It also includes applying for EIN (Federal Tax Id. No.). Create a business account in your choice of bank.
• Obtain essential business permits/licenses: Not required for businesses not providing services in the State.

Taking help of the professionals

If you don’t know the involved procedure or feel confused or simply not have the time, then you should consult the industry experts. They will help you with the formation process.