Easy and Reliable

• Delaware law has been tested and provides predictability.
• Delaware regularly updates its laws to remain the leading state for incorporation.
• Delaware has a separate Court of Chancery that handles corporation law cases quickly and competently.

Lower Costs

• The Delaware Corporation minimum annual franchise tax is $175 and the filing fee is $50.
• The Delaware LLC annual fee is $300, regardless of capitalization.
• Delaware does not tax intangible property such as leases or royalties (the “Delaware loophole”).

Protection

• Piercing the corporate veil, or making individuals personally liable for claims against their business, is very unlikely in Delaware.
• Delaware explicitly makes the charging order the sole and exclusive remedy of creditors of LLC members, meaning that creditors of members can only receive distributions from the LLC, and not control foreclosure, or liquidation.

The post Why Should I Incorporate or Form an LLC in Delaware? appeared first on IncNow.

Agents and Corporations (IncNow®) offers this “foreign qualification” service to LLCs in every state and can help you register your Delaware LLC to do business outside Delaware.

The post Are Delaware LLCs Able to do Business in Other States? appeared first on IncNow.

The post What Tax Savings Will I Receive by Incorporating in Delaware? appeared first on IncNow.

No, you do not need to have a business address or office in Delaware. All businesses incorporated in Delaware require a Registered Agent with a physical street address in Delaware, such as Agents and Corporations (IncNow®). IncNow is available during regular business hours (9-5, Monday through Friday) to receive Service of Process and notices from the Delaware Secretary of State. Many businesses use a Delaware Commercial Registered Agent because they will generally be available during these hours. It is important to choose a reliable Registered Agent because that business should be available for the life of your company to help with services related to the Delaware Secretary of State’s Division of Corporations, to maintain your business and help keep your business in Good Standing.

Many corporations and LLCs that are incorporated in Delaware do not have a physical business address in the state and have only incorporated in Delaware to have the business internal affairs governed by Delaware laws exclusively.

The post Do I Need a Business Address in Delaware? appeared first on IncNow.

The staff at IncNow® ensures you receive your incorporation documents as soon as possible by sending copies via email as well as Priority Mail delivery.

How Long Does It Take to Form a Company?

After completing the Online Incorporation Form inside the United States, you will typically receive your formation documents via Priority Mail Delivery within 4-6 days. This is based on the typical shipping time and the processing time for the Delaware Division of Corporations.

What is The LLC Filing Time?

As a Delaware Commercial Registered Agent, IncNow has access to expedited filing statuses with the Division of Corporations. This means that IncNow can get and LLC formed faster than someone from the general public who is submitting their own filing.

IncNow‘s Now LLC Package includes “Same-Day” expedited filing status. The Delaware Division of Corporations returns evidence for Same-Day filings either the same day or the next business day.

IncNow‘s Complete LLC package includes “24-Hour” expedited filing status. The Delaware Division of Corporations returns evidence for 24-hour filings in 3-4 business days.

For someone to submit their own LLC formation paperwork, it could take weeks for the Delaware Division of Corporations to return a Certificate of Formation.

Do I Need to Expedite My LLC Filing?

We recommend requesting expedited services and email or Federal Express delivery (usually within 72 hours) if your formation is time-critical. The Division of Corporations gets backlogged and slow, particularly in the middle to end of December and during weather emergencies.

The post How Long Does it Take to Get Incorporated in Delaware? appeared first on IncNow.

The only “physical presence” requirement in Delaware is to have a Registered Agent. You do not need to visit Delaware to start or maintain a Delaware company. However, you must retain a Delaware Registered Agent at all times to receive lawsuits if your company is sued. The Registered Agent also forwards annual state maintenance fee notices and Delaware government correspondence to you.

An annual fee is paid to IncNow to serve as the statutory Registered Agent and to receive and forward copies of legal actions filed against the corporation or LLC. Annual meetings can be held at any place and minutes can be signed by consent without a meeting.

The post Do I Have to Maintain an Office or Bank Account in Delaware? appeared first on IncNow.

Can One Person Form a Delaware LLC? 

Yes, a Delaware LLC can have just one Member. An LLC with only one Member is called a Single-Member LLC. 

Most LLCs are actually Single-Member LLCs. This is because LLCs are easy for solo-entrepreneurs and small business owners to manage. 

How Does a Single-Member LLC Work? 

A Single-Member LLC has only one Member who is the owner and manager of the company. Single-Member LLCs are used for a variety of business purposes, from solo consultant businesses, side hustles, and real estate transactions. 

How are Single-Member LLCs Taxed? 

The IRS treats a Single-Member LLC as a “pass-through” for federal tax purposes. This means that the LLC does not actually pay tax directly on its business income. 

Business income is passed down to the LLC owners personal tax return and taxed at their individual tax rate. 

Single-Member LLC vs. Sole Proprietorship: Which is Better? 

The primary difference between Single-Member LLCs and Sole Proprietorships is that LLCs provide their owners with limited liability protection. This means that LLC members are legally protected from liabilities or obligations associated with the business. 

Sole proprietorships do not provide any liability protection. This means that business owners operating as sole proprietors are personally responsible for any debts and obligations incurred by the business. 

By setting up a Single-Member LLC, business owners can put up a layer of legal separation between their personal finances and their business. 

Does a Single-Member LLC Need an Operating Agreement? 

Yes, a Single-Member LLC should still have an Operating Agreement, even if the company has only one owner. 

The LLC Operating Agreement is the document that names the LLC Members and what their responsibilities are. Even though a Single-Member LLC only has one Member, the company should still have a written and signed Operating Agreement to protect the owner from legal liability. 

Can One Person Form a Corporation in Delaware? 

Yes, a Delaware Corporation can be owned and operated by just one person. You do not need multiple owners or business partners to start a corporation in Delaware. 

In a corporation, one person can serve as the sole shareholder, director and officer of the company. Even if a corporation is run by one person, it is still important that the company follows corporate formalities. This includes submitting an Annual Report, holding an Annual Meeting, and keeping minutes of the meeting. 

Failing to follow corporate formalities can result in the company’s shareholder losing their limited liability protection and being personally responsible for the company’s liabilities. 

The post Can One Person Form a Company in Delaware? appeared first on IncNow.