How to Incorporate in Delaware
Being a corporation in Delaware has its perks. There are tax protections, IRS protections and an array of other benefits that come with incorporating your business in Delaware. That does not mean, however, that the incorporation process will be simple and straightforward.
On the surface it looks like it isn't a big deal but it is important that you take the appropriate steps and correctly file the appropriate paperwork before you can take advantage of any of the benefits that being a corporation in Delaware has to offer.
The first thing you need to do if you want to incorporate in Delaware is decide what kind of corporation you want your business to be. There are LLCs, Limited Partnerships, S corporations, C corporations, General Partnerships,and each title means something completely different. Learn about each type of corporation before you pick one from the list.
Ask an incorporation expert to help you figure out which type of corporation is right for you if you have trouble deciding.
After you have decided what kind of corporation you want to be and have registered your business with the State of Delaware (hopefully you will have some experience running this business as a private business before you try to incorporate it), you need to obtain a registered agent. This registered agent is required to be either an individual resident of Delaware or a business that is authorized to do business within the state's boundaries. If your business is already located within the state borders, you can be your own registered agent.
Next you need to reserve your company name and complete the proper incorporation paperwork. The forms for both of these things can be downloaded via the Internet. You cannot, however, file them via the Internet. Your application for incorporation and your name reservation must be mailed or faxed in along with your registration fees. Make sure that all of the proper paperwork gets filed. Your incorporation expert can go over the paperwork with you to make sure that it is filled out and filed correctly.
Once you have been issued a certificate of incorporation you need to elect your board of directors and company officers and decide how your company's stock is going to be distributed. Incorporating does not necessarily make your stock public but shares of your company will be given/sold to your directors and officers to help seal them as owners of your company.
Do not forget to pay your taxes and fees each year. Your professional and accountant can help you keep track of which taxes you file and which fees you need to pay annually. They will also help you draft your corporation's bylaws and make sure that you follow business laws within the state of Delaware.
You should also obtain a Certificate of Good Standing to help you obtain financing from Delaware based financial institutions (some banks and lenders require it before you can get a line of credit or a business loan). Good luck!
About the Author Scott Letourneau,CEO of Nevada Corporate Planners, Inc. Since 1997, NCP has helped more than 5,000 clients get their businesses off to a fast start! Download our 78 pg report,TheInsidersGuide to Incorporating Your Business & Protecting Your Assets!"
http://www.nvinc.com/Incorporate_in_ Delaware.htm
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