Did you know more than 50% of companies traded on the NY Stock Exchange and NASDAQ are incorporated in Delaware? Delaware is a very popular state to incorporate businesses, even those not physically located in the state due to its’ very liberal corporate and tax laws. There is no sales tax in Delaware, which makes it popular with many companies that do business online. If you are considering incorporating your business in Delaware, here’s how to get started:
- Learn all the “ins and outs” of becoming incorporated in Delaware. I highly recommend visiting the State’s official website page for corporations at http://corp.delaware.gov.
- Obtain a Registered Agent if you do not live in Delaware. A list of available agents is available also on the State’s website or do a Google search for “Delaware Registered Agent”.
- Doing an entity name search first and possibly reserving the name you choose (it guarantees no one else can use that name for a period of 120 days), just in case you’re not quite ready to proceed. Again, you can do an entity search and reserve a name through the State’s website.
- Download the appropriate forms for forming a Delaware Corporation (or hire a company to do it for you). You will need a Certificate of Incorporation to proceed.
- Once you’ve completed the necessary forms, you will need to submit the entire package as well as the filing fees to the State. Their address is listed on their website.
There are many companies who are in business solely to assist you in the incorporating process. In addition, it’s always a good idea to consult with your own attorney and CPA prior to forming a new corporation.