Delaware
DELAWARE Corporation & LLC
There are many reasons to incorporate in the state of Delaware. The fact that more than half of all Fortune 500 companies have chosen to form in Delaware is a testament to the outstanding legal and institutional support that the state provides. Several departments and statutes, such as the Delaware General Corporation Law (DGCL) and the Court of Chancery exist to facilitate the incorporation and operation of companies. Also, whereas some states require businesses to list the owners of a company, this is not a requirement in Delaware.
Incorporate in Delaware Online
At IncParadise, we do everything possible to make the incorporation process easy for you. We have designed the ordering process to be as simple as possible for our clients, so that the challenging work is left to us. Our goal is to always provide you with top notch service that will become the foundation stone to a long-standing business relationship between your Delaware company and us here at IncParadise!
Are you looking to start your business in Delaware or are still undecided about incorporating it in Delaware?? Let our incorporation specialists help you!
Time to set up a company
Regular filing time to form a Corporation in Delaware is approximately 3 weeks. Expedited filing is available. The expedited filing time is about 48 hours, and the fee is $115. This includes the state fee, our fee, and provides overnight service to and from the Delaware Secretary of State.
Advantages
Along with the security and support of the above-mentioned divisions, there are other advantages to incorporating in the state of Delaware. Some of these include:
- Companies that are formed in Delaware but do not conduct business within the state are not subject to state corporation income tax.
- There is no personal income tax for Delaware business owners.
- There are favorable tax requirements for companies that are formed in Delaware and have a considerable number of authorized shares.
- The directors, officers, and shareholders of Delaware companies do not need to reside within the state.
- Delaware allows single-member board of directors.
LLC, Corporation S or C
The three main types of entities formed in the state of Delaware are LLC, C Corporation and S Corporation. While the laws governing these entity types may differ, they all receive the same advantages and oversight provided by the Secretary of State Division of Corporations, DGCL, and Court of Chancery.
The main difference between LLCs and Corporations is their structure. A Corporation is governed by Shareholders, Directors, and Officers. Shareholders are the owners of the corporation; Directors are individuals appointed by the Shareholders who oversee the operation of the corporation and act on behalf of the Shareholders; Officers are appointed by the Directors and consist of a President, Vice President, Secretary, and Treasurer. In contrast, an LLC is governed by Members. Members of LLCs are owners, and may be an individual or a separate entity. LLCs may also include Managers. Managers are generally elected to oversee the operations of the company, similar to Directors for Corporations. The roles and responsibilities of Members and Managers must be clearly stated in the LLC’s Operating Agreement. For LLCs and Corporations, a single individual may hold all positions. Meaning, one person may be the Shareholder, Director, and Officers of a Corporation; and they me be the sole member of an LLC.
The second main difference between LLCs and Corporations are their tax status. By default, a Corporation is known as a C Corporation. C Corporations are obliged to pay taxes on business profits every year, and may choose to distribute dividends to the shareholders. If a shareholder does receive dividends, they are then responsible for paying taxes on the money received. To avoid being taxed twice, a C Corporation with less than 100 shareholders may choose to file for Subchapter S Tax Status, or S Corporation. As an S Corporation, the entity is not required to pay federal taxes; but the shareholders are then taxed based on the profits and losses of the company. LLCs are taxed like S Corporations, making the Members and Managers liable for taxes based on the entities profits and losses.
The third significant source of difference between Corporations and LLCs in Delaware is privacy. Each year Corporations in Delaware are required to file an Annual Report that lists the names and addresses of all Directors, the name and address of one Officer, and the address of the corporation’s principal place of business. In contrast, an LLC is not required to file this Annual Report. However, the Registered Agent of the LLC is required to possess the name of a Communications Contact. This may be a Member, Manager, the company’s attorney, or a mere a representative of the LLC.
Yearly requirements
Corporations formed in Delaware are required to file an Annual Report and to pay an annual Franchise Tax. The Annual Report filing fee for all domestic corporations is $50.00, while the minimum Franchise Tax is $175 for all non-exempt corporations, and our filing fee is $15, totaling $240. This is based on your corporation having issued between 1-5000 shares. If your corporation issues more than 5000 shares, the Franchise Tax amount will increase. The Annual Report and Franchise Tax are due no later than March 1st of each year.
Cost To Incorporate In Delaware
The initial cost to form a Corporation in Delaware is $198. This fee is comprised of the Delaware State fee of $109, and our fee of $89. The fee of $198 includes:
- Checking Name Availability
- Preparing and reviewing Articles of Incorporation
- Filing the Articles with the State
- Sending Articles or Certificate of Incorporation to you
- Electronic forms such as bylaws, minutes, and notifications
These forms are necessary for running your company and are not provided by the state. We do offer additional services for additional fees, but these services are provided “a la carte,” so you only pay for the services you need. We pride ourselves on keeping the costs down for our clients, and do not charge any hidden or unnecessary fees.
Delaware additional services
Incorporate in Delaware Online
At IncParadise, we do everything possible to make the incorporation process easy for you. We have designed the ordering process to be as simple as possible for our clients, so that the challenging work is left to us. Our goal is to always provide you with top notch service that will become the foundation stone to a long-standing business relationship between your Delaware company and us here at IncParadise!
Are you looking to start your business in Delaware or are still undecided about incorporating it in Delaware?? Let our incorporation specialists help you!
Time to set up a company
Regular filing time to form an LLC in Delaware is approximately 3 weeks. Expedited filing is available. The expedited filing time is about 4-5 days, and the fee is $115. This includes the state fee, our fee, and provides overnight service to and from the Delaware Secretary of State.
Advantages
Some of the advantages to forming an LLC in Delaware include:
- Business Structure: You may state the rules in which your LLC must follow directly into the Operating Agreement, allowing you to control why and how your business does business.
- Asset Protection: Owners and Members of LLCs are better protected from creditors; no assets under the LLC will be acquired if an owner/member is involved in any personal judgments.
- Personal Liability: Members are not held liable for repayment of debts if the LLC fails.
- Tax Benefits: LLCs are not directly responsible for taxes on company profits. Instead, any taxes on profits are passed onto the owners/members.
LLC (S Corporation or C Corporation)
The three main types of entities formed in the state of Delaware are LLC, C Corporation and S Corporation. While the laws governing these entity types may differ, they all receive the same advantages and oversight provided by the Secretary of State Division of Corporations, DGCL, and Court of Chancery.
The main difference between LLCs and Corporations is their structure. LLCs are governed by Members, who are also owners. An owner/member may be a sole individual or a separate entity. LLCs may also include Managers. Managers are generally elected to oversee the operations of the company. The roles and responsibilities of Members and Managers must be clearly stated in the LLC’s Operating Agreement. For LLCs and Corporations, a single individual may hold all positions. Meaning, one person may be the sole owner of an LLC. LLCs are not responsible for taxes, but the members and managers are. This means that taxes on the profits and losses of an LLC are paid by the members and managers.
Each year Corporations in Delaware are required to file an Annual Report that lists the names and addresses of all Directors, the name and address of one Officer, and the address of the corporation’s principal place of business. In contrast, an LLC is not required to file this Annual Report. However, the Registered Agent of the LLC is required to possess the name of a Communications Contact. This may be a Member, Manager, the company’s attorney, or a mere a representative of the LLC.
Yearly requirements
LLC’s formed in Delaware are not required to file an Annual Report, but they are required to pay an Annual Tax. The total fee is $315. The Annual Tax is $300, and our fee is $15. This tax is due by June 1st each year. If you do not file your Annual Tax with the state of Delaware by June 1st, there is a $200 penalty, plus 1.5% interest per month on tax and penalty.
Cost To Incorporate In Delaware
The initial cost to form an LLC in Delaware is $199. This fee is comprised of the Delaware State fee of $110, and our fee of $89. The fee of $199 includes:
- Checking Name Availability
- Preparing your state approved Articles of Formation form
- Filing the Articles with the state
- Sending LLC Certificate of Formation to you
- Electronic forms such as bylaws, minutes, and notifications
These forms are necessary for running your company and are not provided by the state. We do offer additional services for additional fees, but these services are provided “à la cart,” so you only pay for the services you need. We pride ourselves on keeping the costs down for our clients, and do not charge any hidden or unnecessary fees.