How marketing plays a role in growing your Nevada business?

A small business in Nevada or a start-up needs to target both short-term gains and long-term growth and the best way to do so is by implementing a sound marketing strategy. It is important to understand first what marketing really is and what roles it will play towards the growth of your business enterprise.

• Creates a brand: One of the most important roles of marketing is to create a brand! Your Nevada business and its product or services are an essential part of the process of branding. It creates high visibility for your company by telling customers what to expect from products and services offered by you. It also highlights how your products or services are different from that of your competitors.
• Clear decision making: A small business in Nevada has to start by setting goals and creating strategic marketing plans so that it can achieve growth in local, national or international markets. A strategic marketing plan enables businesses to make clear decisions by considering various opportunities and threats that a start-up may face from their external environment.
• Strengthens Growth Strategies: An important aspect of marketing is the formulation of Nevada business growth strategies. These strategies focus primarily on a product – market matrix that presents opportunities, threats, resource requirements, returns and risks.
• Customer Connect: Marketing is essential towards driving growth for start-ups and an integral part is creating a “strong bond or connection with the prospective customer”. Marketing provides a Nevada business with a path defining the different ways through which it can identify what the customer needs and how the company can fulfill it.
• Creates strong digital presence: In the age of the internet; marketing helps in strengthening the digital presence of a small business in Nevada.

Top 10 marketing strategies you can try for your Nevada Business

As an entrepreneur, you are probably wondering how to create a marketing strategy perfect for your start-up business in Nevada. It is never an easy path when it comes to starting a business and growing it. It all starts with an idea but how do you bring the idea to life? You will have to ensure there is enough visibility of your products or services. This can be quite a cumbersome process and hence, we have listed some of the top marketing strategies that will provide the much needed boost to your start-up business in Nevada.

1. Name Branding

A business is known by the name. A name defines the business logo and they should be such that higher retention value gets created, like it is at Apple, Nike, or Linux. The name and logo of these companies define the brand. A start-up business in Nevada needs to ensure their name and logo are in sync and provide an insight into the type of business it is. Some of the options for developing a name are:

• Use the founder’s name like HP (Hewlett-Packard)
• You can describe what the business does like Delta Airlines, FedEx
• You can describe an experience or image like Disney, Sprint
• You can describe the type of product like Jaguar, Land Rover
• You can use a non-traditional or innovative word like Nike, Amazon
• You can create your own word like Google

2. Official Website

This is a must have for every small business especially in the digital age. A website is the face of the company and at the same time it acts as the branding vehicle. If you are an e-commerce company like Amazon, a shopping cart and product listing within the website can lead to high sales. A website can be brief with the basic informative pages related to the start-up Nevada business or it can be an in-depth website with articles and blog posts linked to products and services. There are several tools that you can use to create your website and these includes:

• WordPress
• Constant Contact
• SiteBuilder
• BigCommerce
• Shopify
• Weebly
• Squarespace
• Wix

3. Run A/B Testing

A/B testing is a fairly new concept that you can try out for your start-up business in Nevada. It refers to two variations of a single website design or content or copy, which is tried with random customers. Here is an example to understand this well: you can design two different landing pages of the same website and upload them. The pages will be randomly served to different visitors to the site. The type, demography, age and other related information of the visitors to each of the landing page will be tracked to check which page performs better. This is how A/B testing will help you determine if changes or additions are required to bring about the necessary improvement in conversions.

4. Digital Marketing Strategy

An important part of the overall marketing strategy of any Nevada business is defining a digital marketing strategy and tools to be used. A sound digital marketing strategy can help start-ups to thrive in the competitive landscape. Some of the tactics that will definitely keep your business one step ahead include:

• Optimize your website or blogs for mobile platform
• Increase your organic engagement rate on social media platforms
• Create and share engaging webinars with strong marketing and informative content on start-up Nevada business
• Work out ways to connect and interact with your target audience in real-time
• Create a targeted email list for sharing products, services, and discounts

5. Create Visibility on social media

Social media is the most powerful platform for small businesses and start-ups. It may come across as highly intimidating at first but the first step will help a small business in Nevada to gain the required momentum. It is a platform appropriate for implementing both branding and marketing strategies. As start-ups can create visibility and target their prospective customers by making posts on future products or services as well as post existing product photographs. Some of the top social media platforms including Instagram, Snapchat, Twitter, Facebook, and SocialDrift among others.

6. Start Blogging

One of the most effective ways of engaging your audience is by starting a blog. It is considered to be a content marketing tool that a small business in Nevada can use to amplify their message directly to the customer. A blog will let you provide information pertaining to your company, history, ideas, introduction to and salient benefits of product or services, how the customer would benefit, business events, summer sales, pictorials, and much more. The more informative your blog is; the higher will be the customer engagement. You can choose to start with a free blog or you can book a domain name and start a blog with the business name. You can also use specific blog marketing tools to maximize impact like Buffer and Tweriod.

7. Content Marketing

One of the top marketing strategies for businesses in Nevada is content marketing. Content is and will always be the king and it is needed to build trust. When a prospective customer reads the content on social media sites or your blog, they should be able to make the decision of buying the product or service. Call to action is an integral part of content marketing for small businesses in Nevada. In order to make content marketing, a success you need to focus on 3 key areas and they are:

• Content production: This is the first and most creative aspect of content marketing. If you have identified your target base and the market then you need to create content that is search engine friendly (SEO), informative, and engaging.
• Content Syndication: Once content has been created, it needs to undergo syndication. It has significant SEO benefits for a small business in Nevada like generation of backlinks and enhancement of domain authority (DA). Some of the content syndication platforms include Inbound, Medium, and Slideshare.
• Content Sharing: The final step is to enable the content created by you to be shared by the customers. The shareability factor of any content depends on how engaging and useful it is to the prospective customer.

8. Search Engine Marketing (SEM)

Search engine marketing is considered as one of the most effective ways of attracting prospective customers and generating revenue, especially for a small business in Nevada. SEM as it is commonly known will help your business grow in a highly demanding and competitive marketplace. Some of the important elements that every small business should work with include:

• Paid search marketing
• Logical keyword grouping for higher click-through rates
• AdWords and Bing Ads accounts for start-up Nevada business
• Search Engine Marketing Ad Auction
• Maintaining high Google AdWords’ Quality Score
• Use high-end web analytic tools

9. Search Engine Optimization (SEO)

Search engine optimization (SEO) is a process by which a start-up business in Nevada can increase the quality as well as quantity of website traffic. This in-turn helps in increasing overall brand visibility leading to higher footfalls and revenue generation. If you implement SEO as a part of your marketing strategy, then it will work through several vehicles like image search, academic search, specific product related search, video search, and news search among others. It is a proven method that helps generate a good return on investment. Some of the tools you can use include:

• Google Search Console for a start-up Nevada business
• Keyword research tools like SEMrush
• Email marketing and project management tools like BuzzStream
• Link building tools like Linkody
• Tools for analyzing website performance like HubSpot’s Website Grader

10. Affiliate Marketing

The final element in your marketing strategy should definitely be affiliate marketing as it is still one of the most effective tools for generating sales. A small business in Nevada can incorporate an affiliate program through which business rewards can be given to one or more affiliates for each new customer they bring in using their own marketing or sales strategies.

Entrepreneur’s guide to form a business in Delaware

There are several aspects of a new business that every entrepreneur needs to take into account so that they can register a business in Delaware. When you start a business, it entails understanding as well as dealing with several issues connected with the operational aspect of the business like legal, financial and intellectual property protection, sales and marketing, employees, and liability protection among others. This is not all; an entrepreneur also needs to identify the different requirements for making their business operational like Delaware business name search for forming a Delaware entity.

This is an entrepreneur’s guide that entails the various aspects and requirements that will not only help you to start a business in Delaware but also make it operational. This guide will be helpful to all small business owners and first time entrepreneurs as it provides relevant information concerning a new business right from the advantages of starting a business in Delaware to preparing a business plan, choosing a business structure, hiring a Delaware registered agent, and obtaining a tax ID among others.

Why do startups prefer to register businesses in Delaware?

Delaware situated in the southern region of the US has a strong economy driven by Agriculture, Fisheries, Manufacturing, Tourism, Finance, and Mining among others. The Real Gross Domestic Product (GDP) of Delaware was $63.28 billion in 2019 and represents 0.36% of the nation’s GDP. The economy along with infrastructure, a positive business environment, and a wide variety of small business incentives has driven entrepreneurs to start a business in Delaware. There are several advantages of registering a new business in this state and some of them are:

• Delaware Court of Chancery: One of the factors for making the startup environment in Delaware good is the existence of the Delaware Court of Chancery. This is a special non-jury trial court that hears and helps resolve corporate disputes. The disputes are decided under the Delaware law, which is considered to be extremely business friendly.
• Flexibility: As an entrepreneur if you are planning to register a business in Delaware then there are several forms of entities to choose from. The important thing is that as a state, Delaware offers flexibility for structuring your business entity, especially a corporation. The corporate statutes of this state are considered to be extremely flexible, for example, directors, shareholders, and officers of a business corporation are not required to reside in Delaware to start a business or apply for a Delaware business license.
• Privacy: Whether you register a business in Delaware as an LLC or a business corporation, the state offers privacy. Although, depending on the type of business, you may be required to maintain the record of a contact person for your entity, which is normally a Delaware registered agent. At the same time, it is also true that certain businesses like corporations are not required to disclose the names of officers or directors in new business registration or incorporation documents thus providing a stronger layer of privacy.
• Tax Haven: The startup environment in Delaware is considered one of the best and this is more so because of the tax climate for businesses. Some of the salient aspects of this tax climate include:
  • Delaware doesn’t have any tax royalty payments Stock shares will not be taxed in Delaware if business owners reside outside the state
  • Favorable taxation is enjoyed by businesses that have issued large amounts of authorized stock shares or have a complex capitalization structure.
  • Non-residents or business owners who don’t reside in the state will not be required to pay any personal income tax

The potential business advantage the state of Delaware offers not only attracts entrepreneurs to start a business in Delaware but also American publicly traded companies. The fact is that almost two-thirds of Fortune 500 companies as well as technology startups have been formed in Delaware.

Steps to start a business in Delaware

Delaware nicknamed as “the Diamond State” is considered to have one of the most business-friendly corporate laws. This is one of the primary reasons why entrepreneurs prefer to start a business in Delaware. Today, the state is home to some of the largest companies in the nation including DuPont, AstraZeneca, Citicorp Banking Corporation, W. L. Gore & Associates, Inc., Swissport Holdings, Inc., Navient, Delphi Financial Group, Inc., and Barclays Bank Delaware among others. If you are planning to hire a Delaware registered agent and register your business in the state then the following steps would help you identify all your business requirements and ensure sustainability and success.

1. Prepare Delaware Business Plan

Whether you are a first time entrepreneur or an experienced business owner planning to register a business in Delaware; you will find a business plan to be the foremost tool towards helping you with good decision making. A strong business plan will take into account several aspects of the business thus providing increased clarity on various areas of the business operation including business formation costs and Delaware business license, marketing strategies, finance and funding options, product or service detail, identifying competition, hiring employees, and future expansion. Some of the areas that a strong business plan will focus on are:

• Committing resources towards capital improvements like investing in computers, software, logistics, buying or leasing of commercial space etc.
• Creating a sound marketing strategy that will take into account your existing competition, the product or services offered the existing market conditions, and the target audience.
• Seeking investments or securing funding using the marketing plan and future expansion plans
• Retaining professional services or hiring the right talent based on the specific requirements of your business, for example: if you register a business in Delaware as a retail store, you will need to hire a sales associate, cashier, customer service representative, visual merchandiser, store manager, and inventory control specialist.
• Providing cost estimates related to pre-opening and post-opening startup costs. This will take into account several areas like employee hiring, marketing and advertising, market research expenses, registration of a business, Delaware business license and annual maintenance costs, equity financing and debt financing, cost towards buying equipment, payroll, and insurance tax.
• Providing a proper structure and management objectives that will focus on operational milestones as well as sales targets. It will include both short-term and long-term milestones based on the revenue or business model.

2. Attend Entrepreneurial Training or Development Programs in Delaware

You have an idea and wish to unveil it on a global platform thus turning it into a successful business venture but, you don’t know how to implement it. What are your options? In such a scenario, identifying and attending Entrepreneurial Training or Development Programs in Delaware can help provide meaningful guidance and open up different avenues for you to launch your new business idea. The importance of Entrepreneurial Development Programs (EDP) lies in the advantage it offers especially to individuals with no prior business experience. Some of the benefits you will derive from such programs include:

• Promoting development as well as polishing of your business skills
• Helping in acquiring knowledge and skills critical towards establishing a new business
• Engaging in Entrepreneurial Development Programs (EDP) that focus on structural training, which is essential for transforming an individual into a successful entrepreneur
• Attending EDP programs before you start a business in Delaware as it provides meaningful guidance in several areas of business operation like product marketing, information on identifying state funding opportunities, guidance towards accessing facility centers as well as services and other infrastructure
• This type of program also plays a key socio-economic role through proper identification of your entrepreneurial qualities and helps you to channel enterprise resources

Where can you attend or enroll for Entrepreneurial Training or Development Programs in Delaware? The Delaware Small Business Development Center (SBDC) offers a wide range of options including small business training programs, webinars and events for small businesses, and workshops to enable you to start a business in Delaware.

3. Choose Business Structure for Delaware Business

In order to start a business in Delaware, you will need to first choose a proper business structure. There are several different business structures that you can choose from in Delaware and they are:
Corporation

• Limited Liability Company
• Sole Proprietorship
• General Partnership
• Limited Partnership
• Limited Liability Partnership
• Joint Venture
• Delaware Statutory Trust

The decision related to the business structure is an important decision as it will have an impact on the amount of taxes you will have to pay. The structure you choose will also define the risk factor related to the personal assets and the personal liability you may face. Hence, it is important to choose a business structure that will offer a balance of tax benefits and legal protection. You can register a business in Delaware after choosing any of the above structures although the most commonly chosen structures according to the Delaware division of corporations are corporations and limited-liability companies because of the multiple benefits they offer.

4. Naming Your Delaware Business

One of the important areas to focus on before you register a business in Delaware is identifying a business name and then reserving it in the State. There are name specifications that you have to be aware of e.g., if you are planning to register an LLC then the name should contain words like “Limited Liability Company” or abbreviations like “L.L.C.”, pursuant to 2 DE Code § 18-103 (2014 through 146th Gen Ass). Once you have identified a name, you need to conduct a Delaware business name search forming a Delaware entity to ensure it is available. You can conduct a business name search using the Division of Corporations resources or website. Simultaneously, you will need to ensure that your chosen name is distinguishable from any other name on the database.

The Delaware division of corporations handles all name reservation applications and you can reserve, re-reserve, transfer a name or cancel an existing name reservation as well. You can reserve a name for a period of 120 days in order to start a business in Delaware.

5. Choose Your Location for Delaware Business

One of the key factors towards successfully operating a small business is choosing the right business location. When you start a business in Delaware, certain key elements of your business will be location dependent like availability of commercial space, business resources, transportation and logistics, business environment, foot traffic or targeted audience, cost, and accessibility. The startup environment in Delaware is positive and vibrant and there are three main counties where you can set up your new business. The counties are:

• Kent County
• New Castle County
• Sussex County

It is important to know that each of the above counties have their own County Laws & Codes, which will define the requirements of each and every business based out of that county including Delaware business license requirements.

6. Register Your Business with Delaware Division of Corporations

The most important aspect of starting a new business is its formation. If Delaware is your chosen state then you will have to go through the registration process. Different states have different laws, rules, and regulations pertaining to new business formation. So, how do you register a business in Delaware?

Once you have chosen your business structure, the next step is to download the form for incorporation or new business formation. This form has to be filled, signed, and submitted along with a cover memo and the applicable fee. The fee for Domestic Corporation is $109. The form has to be submitted to the Delaware division of corporations through mail or electronically using their Document Upload Service.

Alternatively, a top Delaware registered agent like IncParadise can help you with the process of registration or incorporation. We have the experience and expertise in Delaware new business formation and have knowledge of various processes and requirements that will help you to register a business in Delaware.

7. Get Your EIN

EIN is fully known as the Employer Identification Number and is a Federal Tax Identification Number that is assigned by the Internal Revenue Service (IRS). If you start a business in Delaware then you will be required by the IRS to apply for and obtain this unique nine-digit number as it is used for reporting employment taxes. It is also important to note that all businesses don’t require an EIN. If you want to know whether your business requires an EIN or not or if you want to apply for one then as one of the most reputable Delaware registered agents, we can provide the necessary information and guide you through the EIN application process.

8. Open a Business Bank Account for Delaware Business

Banking is an important aspect of any startup or entrepreneurship business. The fundamental benefit of banking is to secure your expenses and if you start a business in Delaware then you will need to keep your personal and business expenses separate. This is where opening a business bank account comes into play. Once you open a business bank account, you will not only get business credit cards but it will also help you to build a strong company credit profile. The paperwork for opening a business account will vary according to the type of bank and the form of business entity.

9. Obtain Delaware State Business Licenses and Permits

You can start a business in Delaware but to make it operational in the state, you will need to apply for and obtain state business licenses and permits. The type of Delaware business license or permit your business requires will be determined by the business activity. Your business may require a single or multiple license or permit. You can register with Delaware’s One Stop Business Registration and Licensing System and you can opt for a single-year or a three-year business license. It is important to note that Delaware counties as well as towns may also require you to apply for local licenses and permits and you can find licensing information from the local and county offices.

A Delaware business license or permit is issued by various state agencies. For example, if you start a business in Delaware as a food establishment like a restaurant, bakery, food truck etc., then you will have to apply for a business license with the Division of Public Health. Similarly, if you offer Non-Professional Services like an advertising agency or IT services in the City of Wilmington then you will need to apply with the City of Wilmington, Delaware Department of Finance, Wage/Business License Division. Yes, the entire process of identifying the right business license or permit for your company may look complex and this is where the “Business License Research Report” service by IncParadise can benefit you immensely. This research report contains a list of filing instructions, supporting document requirements and fees for all business licenses and permits in Delaware.

10. Annual and Ongoing Requirements

Different states have different annual and ongoing requirements for new and existing businesses. If you register a business in Delaware then in order to be compliant with the state business laws, different forms of businesses have to fulfill different annual requirements like all active domestic corporations have to file annual reports and franchise taxes while a limited liability company or limited partnership will have to file only annual taxes. It is important to note that failure to comply with annual requirements can result in penalties for the business. IncParadise as one of the top Delaware registered agents can help you to be compliant with all your annual business requirements.

Delaware is one of the most business friendly states – Register Today!

Some Important Quick Resources for Delaware Business

Starting a new business in any state in the USA can be quite a demanding affair especially if you are a first time entrepreneur. If you are planning to start a business in Delaware then you can acquire knowledge and have access to information pertaining to different aspects of your business formation and operation. Some of the important resources for Delaware new businesses are:

Delaware Division of Corporations

The Delaware division of corporations is a state department that offers a range of business related services and information aimed at both new entities and existing companies. You will have access to information that will help you to register a business in Delaware. Information that you can access or even download include Delaware business name search forming a Delaware entity, reservation of business name, entity status, general information on how to form a new business entity, FAQs, filing of annual reports and business entity tax etc. The contact information for Delaware Division of Corporations is:

• Division of Corporations
  John G. Townsend Bldg.
  401 Federal Street, – Suite 4
  Dover, DE 19901 Phone: (302) 739-3073 option 2
  Email: DosDoc_Tech_Support@delaware.gov
  Website – https://corp.delaware.gov/

Delaware Department of Revenue Tax Division

The Division of Revenue of Delaware government is to provide excellence in tax and revenue service as well as administration. There are several services and resources offered by the department that your business can benefit from like one-on-one business tax assistance, free online filing systems for businesses and individuals, business tax forms, and other business taxpayer services. The contact information for Delaware Department of Revenue Tax Division is:

• Division of Revenue – Wilmington Office
  820 N. French Street
  Wilmington, DE
  19801 (302) 577-8200
  Phone: (302) 577-8778
  Email: DOR_BusinessTax@delaware.gov
  Website: https://revenue.delaware.gov/

Delaware Small Business Development Center

The Delaware Small Business Development Center (SBDC) is responsible for delivering training programs and also offers professional consulting services that are aimed at helping entrepreneurs, innovators, and existing businesses in formulating as well as executing strategies that will enable growth and success. When you start a business in Delaware, you can benefit from their on-location classes, online training options, and seminars. The contact information is:

• Delaware Technology Park
  1 Innovation Way, Suite 301
  Newark, DE
  19711
  Phone: 302-831-1555
  Email: delaware-sbdc@udel.edu
  Website: https://delawaresbdc.org/

Delaware Division of Small Business

The Delaware Division of Small Business is primarily a service-focused agency that is committed towards providing first-time business owners with important business resources.They provide information pertaining to a variety of business support programs and you can benefit from them after you register a business in Delaware. They provide information on Delaware small business incentive programs, tax credit programs, the EDGE Grant program, and preferential tax treatment in opportunity zones among others. The contact information for Delaware Division of Small Business is:

• Dover Office
  99 Kings Highway
  Dover, DE
  19901
  Phone: 302-739-4271
  Email: damien.destefano@delaware.gov
  Website: https://business.delaware.gov/

Doing Business with Delaware Company in Any Other States in the US

Once you start a business in Delaware, you may feel the need to expand your business across the state or even to any other state in the US. In such a scenario, you are bound to ask yourself – is it possible for a Delaware company to conduct its business in other states? Yes, it is definitely possible to conduct business. Even if you have formed in Delaware as an LLC or business corporation and have a Delaware business license you can operate your business in any other state in the USA through a foreign qualification process. Since most Startups prefer doing their business in California but need to derive the advantages of incorporating in Delaware; here is the process of how you could form in Delaware and still conduct business in California.

• Delaware Corporation doing business in California – If you register a business in Delaware as a corporation and want to conduct your business in California then it is both legal and mainstream. As an entrepreneur or business owner, there may be a host of reasons for this transition. The first important aspect is to ensure you are maintaining a registered agent in Delaware and the second aspect is to have a corporation resolved by the founders to do business in other states like California. You will then be required to undergo the foreign qualification process, which is registering your business as a foreign corporation with the office of the California Secretary of State. You can form a stock or professional corporation and the filing fee is $100. You will also need to submit a “Certificate of Good Standing”.
• Delaware LLC doing business in California – If you register a business in Delaware as a limited-liability company and want to conduct business in California then you will be required to register as a foreign entity. You will have to file an “Application to Register a Foreign Limited Liability Company” also known as Form LLC-5 with the office of the California Secretary of State along with a filing fee of $70 and a Certificate of Good Standing.

Do you need to prepare your startup in Delaware for business growth?

Ready to start business in Delaware?

It is never an easy path when you want to transform an idea into a successful business. There are several factors that have to be considered and processes to be completed to simply start a business in Delaware. A good business climate and strong tax shelter make Delaware a good choice for your enterprise but where do you start? IncParadise, one of the reputed Delaware registered agents can help you establish your business in the state by providing a wide range of business-related services including incorporation or new business registration.

We are not only one of the top incorporation or new business formation service providers in Delaware but have also helped thousands of businesses in Delaware to start their LLC or INC. We also specialize in providing additional services to help start a business in Delaware like EIN assistance, foreign qualification, and Certificate of Good Standing among others.

Delaware Registered Agent

A registered agent in Delaware acts as the liaison between a business entity and the secretary of state or Delaware Division of Corporation to handle service of process. A registered agent in Delaware also provides an array of services that may vary from new business formation to assisting with filing of the annual report, helping obtain federal tax ID and Delaware certificate of good standing among others. If you hire a registered agent in Delaware then they will also be responsible towards receiving all types of legal documents and correspondence from the Division of Corporations on your behalf. There are several steps to change a Delaware registered agent if you already have one but require someone to handle your requirements in Delaware.

What does being a registered agent in Delaware mean?

Whether you are planning to start a new business in Delaware or thinking of expanding or moving your existing business to Delaware from another state; the State Code states that it is mandatory to hire and maintain a registered agent in Delaware. Different states may have different requirements and processes to hire or change a registered agent but the purpose remains almost the same. The purpose of a resident agent in Delaware is:

• A legal or physical address also means that there will be staff available for facilitating the legal service of process if one is served to the business entity in an event of lawsuit or a legal action. The staff is available during normal business hours as specified by the Delaware Code.
• A registered agent in Delaware is a firm or an individual to whom the office of the Secretary of State or Delaware Division of Corporations will send all official documents pertaining to various annual business requirements like the Delaware annual report form and franchise tax notice.
• An important role of a registered agent in Delaware is to notify an entity regarding their business status in the state like if they are in “good standing” with the state or not.

In order to ensure effective and efficient delivery of registered or resident agent services, company’s often hire a new agent or change their existing agent. There are specific steps to change a Delaware registered agent, which you can follow to ensure all your business requirements are met by the chosen agent.

Who can be a Delaware registered agent?

A registered agent in Delaware can be a company or a person who accepts business, state, and legal mail on behalf of a business entity. Sometimes business owners are confronted with the thought of whether it is possible to be a resident agent as an individual and how to become a registered agent in Delaware and represent themselves. As to who can be a Delaware registered agent, there are two options, which is an individual as a registered agent and a commercial registered agent.

• Individual as a Registered Agent – If you want to represent yourself or your company then you need to know how to become a registered agent in Delaware. Delaware allows individuals to be a registered agent. According to the Delaware Code, Title 6 for domestic and foreign LLC and Title 8 for domestic or foreign corporation permit an individual to be their own registered agent in Delaware. So, how do you become a registered agent in Delaware? To become a registered agent or resident agent for your own business; you will have to fulfill certain state requirements like maintaining a physical office in Delaware that should be open, and he/she has to be present at the designated location to accept the service of process or perform the duties of a resident agent.
• A Commercial Registered Agent – A commercial registered agent on the other hand can be an individual or a firm that offers professional registered agent services in Delaware. A professional registered agent in Delaware is a firm that is compliant with the statutory requirements as specified in the Delaware Code 8 Del. C. §132, 6 Del. C. §15-111(a)(e), 6 Del.C. §17-104(a)(e), and 6 Del. C. §18-104(a)(e). Such an agent should also have represented at least 50 or more domestic or foreign business entities and have been handling service of process for at least 1 year. IncParadise has represented more than 10,000 business entities across the US and are fully compliant with the Delaware commercial agent requirements. If you are looking for professional agents with experience and expertise then you can hire IncParadise by following the steps to change a Delaware registered agent.

Do you need Delaware Registered Agent Services?

Changing Delaware Registered Agent

Different businesses have different reasons to change a Delaware registered agent for example, when you are starting an LLC, you may designate yourself or another member of the limited liability company to be the registered agent. However, since the address of the chosen registered agent goes on public record, hence most agents resign from their current position. Sometimes, a company owner opts to be an individual resident agent and due to additional workload and expansion of the business, it becomes necessary to hire a professional registered agent service. These are some of one of the most common reasons for wanting a change of agent.

Steps to change Delaware registered agent

There are a few steps to change a Delaware registered agent that you will be required to follow for smooth transition of the entire process of changing your Delaware RA. Let’s take a look at how this process actually works.

1. Choose a new registered agent in Delaware

One of the important steps to change a Delaware registered agent is to choose a new agent. Have you identified a registered agent who will provide service of process and represent you in Delaware?

In order to search and choose a new registered agent, there are two questions you need to ask:

• Why do you want to change a registered agent in Delaware?
• What are you looking for in the new resident agent?

Let’s look at an example to understand this. You have been acting as an individual agent for your company for a few years but since its inception, your business has grown. In such a scenario, adhering to the norms and compliances of Delaware State consumes time and you are unable to maintain regular business hours. At the same time, you need all your energy and focus on business expansion and growth. What is the next best option? You opt for the process to change a Delaware registered agent (RA) but how do you choose a new registered agent in Delaware? There are a few factors to consider while choosing an RA and they are:

• Choose an RA service that is professional – A professional registered agent will have staff maintaining regular office hours e.g., if you take a vacation and are unable to receive a notice then a professional registered agent like IncParadise can receive on your behalf.
• Choose an RA service that has a nationwide presence – Nationwide presence is important from the perspective that if you were to expand to another state apart from Delaware in the future, you would have to hire another agent in the new state. Instead, if you hire a registered agent service like IncParadise, which has presence in all the 50 states then you will not be required to change Delaware registered agent or hire a new one irrespective of your location.
• Evaluate the different service levels – The services provided by a professional RA are crucial. Different registered agents provide different services depending on the type of business and the state where you are planning to conduct your operations. A reliable and professional registered agent like IncParadise provides a myriad of business services that vary from new business formation to managing paperwork associated with renewing, appointing, or changing your registered agent.
• Are they providing any software? – One of the salient highlights of a reliable registered agent service is providing clients with access to Entity Manager Software. Our software is state-of-the-art and can be used to meet business related requirements like receiving important notifications and alerts pertaining to deadlines or annual submissions.

Once you have identified your requirements and taken all factors into consideration, it will be easy to move on to the next step of choosing a new agent or change a Delaware registered agent.

2. Notify your previous registered agent about the change

Once you have taken the decision to change a Delaware registered agent and have chosen your new agent, it is important to notify your previous registered agent about the change. Although it is not mandatory, if you don’t notify then there is a high possibility of your business getting billed for services that you are no longer in use.

3. File a Delaware Certificate for Change of Agent to the Delaware Department of State, Division of Corporations

This is one of the most important steps to change a Delaware registered agent as it will require you to file change of agent paperwork with the Delaware Department of State, Division of Corporations.

If your business is a corporation then you will be required to file the “Certificate of Change of Registered Agent/Office for Corporation” in accordance with Section 133 of the Delaware General Corporation Law. If your business is a limited liability company then you will have to file a “Certificate of Amendment Changing Only the Registered Office/Agent of Limited Liability Company” in accordance with Section 18-202 and 18-1105 (a) (11) of the Delaware Limited Liability Company Act. The certificate has to be filed along with a Cover Memo.

How much does it cost to change your registered agent in Delaware?

If you are planning to change a Delaware registered agent then the fee for filing a registered agent change certificate is $50 for both corporations and LLCs. If you hire IncParadise as your registered agent in Delaware then you can avail of a special package for “Registered Agent Change” – $89 for one year. There will also be an additional state filing fee of $50 charged separately by the Delaware Secretary of State when you change your registered agent to IncParadise. Once you order our Registered Agent services, we will take care of all your business communication with the state including Delaware Secretary of State about change of your registered agent.

Choose IncParadise as Your Delaware Registered Agent

Whether you are forming a new business or expanding your existing business in Delaware; it is mandatory to hire a registered agent in the state to handle ‘service of process’. If you are thinking of changing your registered agent in Delaware then it is also important to note that the new or chosen agent has a physical address in the state and not just a P.O. Box number. IncParadise, one of the most reputable agents in Delaware adheres to the regulations established by the Division of Corporations and Secretary of State.

We are one of the leading registered agent service providers in Delaware, and we can help you with the process of changing your registered agent in Delaware. As your registered agent in the state, we will accept the service of process and other communications including receiving legal, official, and business documents as we have experienced staff who maintain normal working hours. We also provide a secure online account to all our clients for enabling access to email notifications or for renewal of registered agent services in Delaware.

Pros of Incorporating in Delaware

You can form a variety of businesses in Delaware including Limited Liability Company (LLC), General Corporation (INC), Public Benefit Corporation (PBC), Limited Partnership (LP), S Corporation, Sole Proprietorship, Limited Liability Partnership (LLP), and Delaware Statutory Trust among others. There are several salient benefits of Delaware incorporation and hence a large number of small businesses are registered as corporations. Due to the business friendly laws almost 63% of the Fortune 500 companies have been incorporated in Delaware.

Favorable taxation for businesses

Delaware is one of the few states that are synonymous with favorable taxation for startups and new businesses. If you incorporate in Delaware then one of the top advantages you will enjoy is the absence of state taxes. The favorable business taxation climate is driven by the following facts:

• When you incorporate in Delaware; your company will not be subjected to any tax for in-state purchases
• As a business corporation operating outside Delaware, you will not be subjected to any state corporate income tax on goods as well as services
• A holding company is not subjected to any corporate tax on interest or any other investment income earned in the state.
• There are more benefits of forming a corporation as compared to Delaware llc advantages disadvantages
• If your company owns equity investments or fixed-income investments then there will not be any state level taxation on its gains
• There is no personal property tax although on a county-level, you may be subjected to real estate property tax
• One of the top benefits of Delaware incorporation is that business transactions are not taxed. There are also no value-added taxes (VATs), inventory or unitary tax, and inheritance tax
• Corporations can also benefit from the fact that there are no stock or capital shares transfer taxes

Taxes play a crucial role in the overall growth of a business and also help a business to save money thus reducing the overall cost of formation. Favorable taxation is actually one of the strong points when it comes to Delaware incorporation advantages.

Flexibility

One of the top benefits of Delaware incorporation is the flexibility of structuring your company. The corporate statutes in Delaware are considered as one of the most flexible when it comes to the ways in which you can structure your business and even the directors or board members. Flexibility is also one of the primary Delaware llc advantages and disadvantages as a limited liability company can be managed by its members, managers or board of directors without a manager or board of directors. An LLC enjoys contractual flexibility meaning the Delaware LLC Act allows certain restrictions and elimination of fiduciary duties in accordance with an LLC agreement.

A Delaware corporation enjoys flexibility when it comes to arranging management structures as well as economic rights along with other matters within the organization. When you incorporate in Delaware; the shareholders, directors, and officers of the said corporation can reside outside Delaware. In fact, the directors or shareholders can start a new business in Delaware or apply for a business license without the need to reside in the state and this is one of the top Delaware incorporation advantages. This is one of the biggest Delaware incorporation advantages and hence half of the publicly traded companies in the U.S. are based out of this state.

Privacy

Delaware is popularly known as the “go to” state for startups and entrepreneurial businesses due to its long standing favorable business laws. There are several other benefits of Delaware incorporation and one of them is the privacy certain businesses enjoy. The Delaware law makes it possible for members to form an LLC without the need to put their names on any form of public documents thus successfully eliminating any paper trail. The same is true for corporations and this provides a lot of privacy to the members or directors of the limited liability company and business corporations.

Well established Delaware court system

One of the benefits of Delaware incorporation is the highly reliable Delaware judicial system. The Delaware Statute is an integral part of the friendly business laws and so is the Delaware courts, which interpret it. The Delaware court system also known as the Delaware Court of Chancery is a specialized court that handles corporate or business issues thus making it one of the top Delaware incorporation advantages for new businesses. The Delaware Court of Chancery was established in 1792 and is famous for its impartial and expert judges. In fact, the court uses judges instead of juries to resolve business issues or corporate disputes. Some of the renowned and top experts in business law are serving as the judges at the Court of Chancery, and cases from this court can be appealed directly to the Delaware Supreme Court.

Investor preference

It is a known fact that new businesses and startups prefer to incorporate in Delaware but did you know investors also prefer Delaware companies? There are numerous reasons for this favoritism and one of the primary reasons is the Delaware law, which is considered to be quite practical. An example of this is any amendment made to the certificate of incorporation for facilitating creation of “Preferred Stock” for a venture capital investor which will be effective when you file in Delaware as compared to some other states like California where the amendment will be reviewed by the Secretary of State thus making the process time consuming. Secondly, one of the Delaware incorporation advantages is that it is quite easy to trade shares in a C Corporation and investors normally like preferred stock vis-à-vis common stock.

Easy filing

The Delaware Division of Corporations is responsible for the issuance of the certificate of incorporation (Stock Corporation) and Certificate of Formation (LLC). One of the advantages you will enjoy if you incorporate in Delaware is a quick and easy filing process. You can download the required forms and submit them with the Delaware Division of Corporations after choosing the type of expedited service 1-hour, 2-hour, same day, and next day service. This will ensure the processing takes place quickly and the Delaware incorporation advantage is that you can receive the formation documents within 24 hours.

Zero sales tax

The sales tax laws are not subjected to the federal regulations and hence each state in the U.S., can control its own sales tax or sales tax rates. The sales tax is normally imposed on specific services and retail transactions. The state of Delaware along with Montana, Alaska, Oregon, and New Hampshire does not impose a state or local sales tax and this is irrespective of the physical location of the business entity and this is one of the benefits of Delaware incorporation.

Let your new business benefit from the Delaware Advantage!

Cons of Incorporating in Delaware

There are several Delaware llc advantages and disadvantages but there are also some disadvantages of incorporating in the state.

Extra foreign qualification costs

If you are already operating a business outside Delaware and want to incorporate in Delaware then the foreign qualification laws would be applicable. As a part of foreign qualification, you will have to submit a fee of $245 for the Qualification Certificate and $125 for the Annual Report. Hence the foreign qualification costs and ongoing fees can be higher as compared to forming a domestic corporation.

Franchise tax

If you incorporate in Delaware then one of the main disadvantages is the franchise tax. It is important to note that foreign as well as domestic corporations have to pay a franchise tax by March 1st of each year. There are two methods for calculating the tax and they are the Authorized Shares method and the Assumed Par Value Capital Method. The minimum franchise tax is $175 while the maximum is $200,000 and for a Large Corporate Filer, the tax would be $250,000. The franchise tax is one of the Delaware LLC advantages and disadvantages as they are required to pay a flat tax of $300.

Filing cost are high compared to other states

Whether you incorporate in Delaware or form a limited liability company, the filing costs can be higher than some of the other states. Apart from the initial incorporation or formation documents, you may be required to file an annual report and franchise tax thus increasing the overall filing costs, which is more of a disadvantage than Delaware incorporation advantages. The initial filing fee in Delaware for a domestic corporation is $109 and that of a foreign corporation is $245 while the filing fee for both domestic and foreign corporations in Florida is $35. There are additional filing fees that you may have to pay for Name Reservation, Registered Agent Designation, Certified Copy of the incorporation or formation documents, and Annual Report among others.

Looking to Incorporate a Delaware Business?

Delaware is considered one of the top states when it comes to providing a business friendly environment and tax benefits. It is favored by entrepreneurs as well as investors and is home to some of the top Fortune 500 companies. If you want to start a new business in this state then there are several benefits of a Delaware incorporation that you can leverage. You may feel overwhelmed by the incorporation process but that is why IncParadise is there to provide guidance and assistance. We are one of the expert incorporation service providers in Delaware and we can help you with the entire process of Delaware incorporation.

The state of Delaware requires businesses to fulfill certain annual requirements like franchise taxes, annual reports etc. In order to help maintain compliance with the Delaware laws and to ensure smooth operation of your business, IncParadise offers a wide variety of business related additional services. The services include foreign qualification, EIN assistance, S Corporation status election, and Delaware Certificate of Good Standing among others.

Small Business and Startups in Delaware

There are more than 30.7 million small businesses in the US with Delaware being home to 84,675 small businesses including 1,909 small business exporters. There are several thriving industries in the state that present opportunities for startups including the finance sector (a backbone sector), fishing industry (contributes approx. $34 million), agriculture industry (worth $8 billion), manufacturing sector (2nd largest traded sector), Tourism (generates $500 million in taxes), construction industry (fastest growing), and retail trade among others. If you are thinking of starting a new Delaware business or relocating an existing business then small business grants in Delaware can play a key role in helping you achieve certain business objectives. The state offers several types of grants including EDGE grant in Delaware and other business incentives that make the state an attractive place for entrepreneurs.

Why do small businesses or startups prefer Delaware?

The state of Delaware is considered as one of the best destinations for incorporating a new business. In 2019, the economy of Delaware grew at an annual rate of 2.3 percent, which was faster than the overall US growth rate of 2.1 percent. The state offers several business incentive programs including small business grants in Delaware and provides startups with a competitive business climate, robust infrastructure, a diverse workforce, and a good location. The state is considered as a favorite by first time entrepreneurs, family-based businesses, and even Fortune 500 companies. You can also start a business in this state and take advantage of several incentive programs the state offers including Delaware small business relief grants that will minimize your overall startup costs. Some of the top advantages are:

• Tax Benefits for small businesses: One of the top benefits apart from a Delaware startup grant is the tax benefits that companies can derive. The state doesn’t tax business entities that operate outside of its borders, which means that if there is no physical office in the state if you are not doing business directly within Delaware then state taxes will not be applicable. Additionally, businesses can also benefit from the following:
  • There is no state sales tax
  • There is a very low gross receipts tax applicable only in certain situations. This tax will be applicable if you are doing business in the state.
  • There is no corporate tax applicable on interest or any other investment income in a Delaware holding company.
  • There are no state level taxes on equity investment or fixed-income gains
  • There is no business or personal property tax.
  • You may have to file estate tax at the county level and it is fairly low
  • There is no inventory tax, use tax, or value-added tax in the state
  • There is no tax on capital shares or stock transfer and is considered to be beneficial for startups trying to obtain Delaware startup grant or venture funding
  • There are no state based taxes on intangible assets like patents, trademarks, and naming rights.
• Business Friendly Judicial System: One of the salient aspects of new business formation in Delaware is the highly respected and well-established judicial system also known as Delaware’s Court of Chancery. The court specializes in handling and resolving a variety of corporate issues by using judges instead of a jury. It also examines issues related to commercial litigation and real property. It is also a known fact that the Delaware business laws are more favorable to business entities as compared to most other states. If you plan to register in Delaware then you can be rest assured that there is a robust legal system that will provide the protection your business requires.
• Privacy and Flexibility: One of the top advantages for companies in Delaware is the privacy and flexibility that they can enjoy. Business corporations can take advantage of the terms of Delaware’s corporate statutes, which imply that there is flexibility regarding the structure of your corporation as well as board members like shareholders or directors of the company are not required to be residents of the state. Since, corporations are not required to disclose the name of the director or officer in the registration documents, such businesses enjoy a lot of privacy as well.
• Small Business Development and Incentive Programs: Whatever the type of business you form in Delaware, there are several state-based business incentive programs you can benefit from. These programs can vary from tax credit programs like angel investor tax credit programs to small business grants Delaware programs including the EDGE grant in Delaware. There are several other programs like the Brownfield Assistance Program, Workforce Training Grant, Delaware Capital Access Program, Delaware Technical Innovation Program, New Business Facility Corporate Income Credit Program, Research and Development Tax Credit, and Delaware New Jobs Infrastructure Fund among others.

Delaware Division of Small Business Grants

A Delaware startup grant also known as a small business grant usually refers to a small amount of seed money that is provided to an individual or entrepreneur, or business entity by the federal, state, county or local governments, and even private companies. The grants are quite popular amongst new businesses as they present an attractive financial consideration, which can help promote growth or expansion. Unlike a loan, a grant is not required to be repaid. The Delaware small business relief grants can be obtained by different types of businesses including women owned businesses, online entities, veteran owned startups etc. The key lies in searching for, and identifying the grants that your business will qualify for and then applying for the same. Let us take a look at some of the top grant programs in the state.

EDGE Grants

As a business, you may qualify for a variety of small business grants and one of them is the EDGE grant in Delaware. The EDGE grants are awarded by the Division of Small Business using a competitive selection process. The eligibility for this grant depends on the following:

• The said business has been operational for less than 5 years
• The business has employed less than 10 people
• It is located in Delaware
• It has never received a Strat Fund grant

The EDGE Delaware startup grant application takes into consideration several criteria including location of the business (Opportunity Zones), MWVBE (Minority, Women, Veteran-Owned Business Enterprises) status, Business viability, Business need, and Competitive advantage among others. A STEM-based company can receive a maximum of $100,000 for eligible expenses through the EDGE grant in Delaware while an Entrepreneur Class (non-STEM) business can be awarded a maximum of $50,000.

It is important to note that a non-Delaware company may also be able to apply for the EDGE small business grants in Delaware if it relocates a minimum of 51 percent of its business. A sole proprietorship business can also apply for this grant.

DE Relief Grants

The Delaware small business relief grants (DE Relief Grants) is a joint effort between the State of Delaware and New Castle County to assist small businesses as well as nonprofits that have borne the impact of the COVID-19 pandemic. The funds of this small business grants in Delaware program are made available from the federal CARES Act. The eligibility rules imply that a business must meet the U.S. Small Business Administration’s definition while a nonprofit is eligible if it is a registered 501(c)(6) or 501(c)(3) organization.

It is important to note that you can apply for the small business grants in Delaware, if 51 percent of your business is based in Delaware. You can also apply even if you have received grants like EDGE grant in Delaware, HELP, or DTIP grants previously. You will be required to apply for this grant online when the funding period opens.

Incentive and Credits Programs

Although a Delaware startup grant is one of the top beneficial programs for any small business in the state, there are several other types of incentive and credits programs that businesses can benefit from. There is a long list of programs but the most popular and beneficial programs for new and existing small businesses are:

Tax Credit Programs

Depending on the type of business you form, the location, the product or service offered and the business requirement; there are several different tax credit programs, you may qualify for. The tax credits are primarily administered by the Delaware Division of Revenue against the personal or corporate income tax, public utility tax, and gross receipts tax, among others. Some of the top tax credit programs include:

• New Economy Jobs Tax Credit
• New Business Facility Tax Credits
• Public Utility Tax Credit
• Gross Receipts Tax Credit
• Brownfields Credit
• Clean Energy Technology Device Manufacturers’ Credit
• Angel Investor Job Creation and Innovation Tax Credit
• Business Finder’s Fee Tax Credit
• Research and Development Tax Credits
• Neighborhood Assistance Tax Credit
• Individuals with Disabilities Tax Credit

Funds and Grant Programs

The funds and grants programs are an essential component of the business incentive program in Delaware and the objective is to ensure the startups or small businesses costs of business formation and operation is minimized. There are several different types of Delaware startup grant and funding programs that you can choose from including the Delaware division of small business relief grants. The programs are:

• Transportation Infrastructure Investment Fund(TIIF)
• Delaware New Jobs Infrastructure Fund
• Workforce Training Grant Application

Do you want to start your new company in Delaware?

Other Recent Funding Opportunities Published in the Local State

Small business grants in Delaware are not just offered by government bodies and state agencies but also by private institutions and county or local agencies. The state of Delaware has created funding opportunities for small businesses as well as existing businesses based on business need and the impact of the covid pandemic on businesses. The Delaware small business relief grants published in the local state focuses on women entrepreneurs, individual business owners, construction projects, education, social and economic empowerment projects, and much more. Some of the statewide and local county based funding opportunities are:

• Fund for Women
• Youth Success Grants
• Leadership in Community focus grant
• Highmark BCBSD BluePrints for the Community Small Grants
• Highmark BCBSD BluePrints for the Community Standard Grants
• Capital Project Grants
• COVID-19 Strategic Response Fund: Community Needs Grants
• African American Empowerment Fund of Delaware
• The Next Generation – Northern Delaware
• Caesar Rodney Rotary Foundation (CRRF) New Castle County Youth Empowerment Fund
• Specific Interest Grants
• Potter Charitable Trust
• Delaware Nonprofit Support Fund (CARES)

Ready to Start a Business in Delaware?

Each business has its own set of requirements and objectives and the fulfillment of the same can be cost intensive. This is where a Delaware startup grant can be quite beneficial as it will help you to minimize the cost of setting up your business as well as lower your expenses post business formation. You can apply for Delaware small business relief grants only after you have registered your new business in the state and IncParadise can help you with the process of incorporation or formation.

IncParadise is an expert incorporation service provider in Delaware and we can not only help you to start your small business in Delaware but also provide meaningful assistance with all your annual filings. We provide a wide variety of additional services that cater to different types of business requirements right from filing of Delaware Annual Franchise Tax Report to help obtain Tax ID/EIN, foreign qualification, and Certificate of Good Standing among others.

Delaware Business Entity Conversion

Once you start a new business, it will witness growth and expansion over a period of time and that is when you may want to restructure your business. Re-structuring the entity is considered as a business entity conversion in Delaware where-in you shift from one type of entity to another type to enjoy tax, privacy, and other benefits. It is like changing from a proprietorship to a C corporation or converting an LLC to a corporation in Delaware. This type of change is made possible through a specific process of conversion in the state and may be different for different forms of companies.

What does business entity conversion in Delaware mean?

You can form different types of businesses in the state of Delaware right from Corporations to Limited Partnerships (LP), Public Benefit Corporations, Statutory Trusts, Limited Liability Companies (LLC), General Partnerships (GP) and much more. Now, if you want to change the type or form of the company currently operational, what do you do? This is where you need to opt for Delaware entity conversion as it will help you to change business structure without the need to dissolve the existing business.

There are a lot of reasons why you would want to opt for a Delaware business conversion. It is important to understand that you have to take into account several factors that will help you to make this decision. Some of the factors to consider are:

• The business owner wants to avoid any kind of personal liability
• An entrepreneur wants to create a pass-through taxation entity
• The ways through which financing has to be obtained
• Owner requires flexibility regarding splitting of their management and economic rights
• If the owner feels their personal assets are at risk especially from a legal suit by a creditor
• Risk of civil litigation

For example: Edward and Edith formed a business in Delaware to promote home-baked confectionary. Edith’s role in the business was operations and Edward was the financier. They registered an LLC in the state as they felt it would best meet their requirements. The business experienced growth and success over a period of time and it was time for expansion. A venture capitalist “ABC” showed interest in investing in their expansion but the investor could only finance if their business was a corporation. In order to expand and have it financed through a venture capitalist they opted to convert llc to corporation in Delaware.

Normally, there are three ways to change the form of a business entity and they are:

• Dissolution of the existing business and forming of a new entity
• Inter-entity mergers where the old business entity type gets merged into the new entity being formed
• Statutory conversion or Delaware entity conversion where none of the above is applicable as you simply change the form of the entity to another type

Changing Business Entity in Delaware

If you have considered all the factors and want to go ahead with business entity conversion in Delaware, what is the process? The conversion process is governed by the Delaware Code for the type of business entity being converted and the entity it will convert to. Let us look at the most preferred Delaware business conversion and the process.

Converting LLC to Corporation in Delaware

If you have formed a limited-liability company but now you want to change the business entity type to that of a corporation, how do you bring about this structural change? You will have to opt for business entity conversion in Delaware, which is governed by 2 DE Code § 265 (2014 through 146th Gen Ass). The following steps will help you understand how the process to convert llc to corporation in Delaware works.

• Step#1: You have to first get approval from the existing members of your LLC for Delaware entity conversion
• Step#2: Once the approval is there, you will be required to file for a certificate of conversion to corporation executed in accordance with 2 DE Code § 18-214 and filed in accordance with 2 DE Code § 103
• Step#3: You can download and submit the “Certificate of Conversion from a Delaware or Non-Delaware Limited Liability Company to a Delaware Corporation form” along with one Cover Memo
• Step#4: You will have to submit the “certificate of incorporation” pursuant to 2 DE Code § 103 (2014 through 146th Gen Ass). This has to be filed along with the “certificate of conversion”
• Step#5: The paperwork or application has to be filed with the office of the Department of State, Delaware Division of Corporations along with the filing fee. The total filing fee will be $253, which includes $164 for certificate of conversion and $109 for certificate of incorporation

It is important to ensure the form and cover memo contain all accurate and relevant information to ensure proper business entity conversion in Delaware. Information requirements include:

• The cover letter or memo should contain your name, address and telephone/fax number, so that the concerned department can contact you
• Information regarding the jurisdiction of formation of the Limited Liability Company
• The date of formation of the LLC
• The name of the LLC prior to filing the form to convert llc to corporation in Delaware
• The name of the new entity as set forth in the Certificate of Incorporation
• The conversion document has to be signed by a witness
• You will also have to provide details pertaining to the amount of total stock that the corporation is authorized to issue

Are you wondering how to convert an LLC to a corporation in Delaware?

Converting Corporation to LLC in Delaware

If you have formed a business corporation and want to change the business entity type to that of a limited-liability company (LLC), how do you proceed? You will have to opt for business entity conversion in Delaware, which is also known as statutory conversion. Once you convert a corporation to llc in Delaware, all your assets as well as liabilities will get transferred to the newly converted entity or the limited-liability company. The corporation to LLC conversion is governed by 2 DE Code § 18-214 (2014 through 146th Gen Ass) and the following steps will help you in understanding the process.

• Step#1: You have to first get the approval of the stockholders of the corporation for the Delaware entity conversion to take place
• Step#2: Once the approval is there, you will be required to file for a certificate of conversion to corporation executed in accordance with 2 DE Code § 18-214 and filed in accordance with 2 DE Code § 18-204 (2014 through 146th Gen Ass)
• Step#3: You can download and submit the “Certificate of Conversion from a Delaware or Non-Delaware Corporation to a Delaware Limited Liability Company form” along with one Cover Memo
• Step#4: You will have to submit the “certificate of formation” pursuant to 2 DE Code § 18-201 (2014 through 146th Gen Ass). This has to be filed along with the “certificate of conversion”
• Step#5: The paperwork or application has to be filed with the office of the Department of State, Delaware Division of Corporations along with the filing fee. The total filing fee will be $290, which includes $200 for certificate of conversion and $110 for certificate of formation

It is important to ensure the form and cover memo contain all accurate and relevant information to ensure proper business entity conversion in Delaware. Information requirements include:

• The cover letter or memo should contain your name, address and telephone/fax number, so that the concerned department can contact you
• Information regarding the jurisdiction of incorporation or formation of the corporation
• The date of incorporation
• The name of the corporation prior to filing the form to convert corporation to llc in Delaware
• The name of the new entity as set forth in the Certificate of Formation
• The conversion document has to be signed by a witness/authorized person
• Name and address of the registered agent hired by your company like IncParadise

Do you want to convert your corporation to a Delaware LLC?

Converting Foreign Entity to Delaware Entity

If you have formed a business in any other state or if it is not based in Delaware and you want it to be converted to a Delaware entity; is it different from that of domestic conversions? Business entity conversion in Delaware makes it possible to convert a Non-Delaware entity like a corporation to a Delaware entity or corporation. The following steps will help you in understanding the process.

• Step#1: You have to first get the approval of the stockholders of the non-Delaware corporation for the Delaware entity conversion to take place
• Step#2: Once the approval is there, you will be required to file for a certificate of conversion to a Delaware entity executed in accordance with 2 DE Code § 265 (2014 through 146th Gen Ass)
• Step#3: You can download and submit the “Certificate of Conversion from a Non-Delaware Corporation to a Delaware Corporation form” along with one Cover Memo
• Step#4: You will have to submit a “certificate of incorporation”, which is to be filed simultaneously with the “certificate of conversion”
• Step#5: The paperwork or application has to be filed with the office of the Department of State, Delaware Division of Corporations along with the filing fee.

It is important to ensure that you provide required information for Non-Delaware to Delaware entity conversion in the application and cover memo. Information requirements include:

• The cover letter or memo which should contain your name, address and telephone/fax number, so that the concerned department can contact you
• Information regarding the jurisdiction of incorporation or formation of the non-Delaware company
• The date of incorporation/formation of the non-Delaware company
• The name of the non-Delaware company prior to filing the form for Delaware business conversion
• The name of the new entity as set forth in the Certificate of Formation/Incorporation
• The conversion document has to be signed by a witness/authorized person

Are you thinking of converting your foreign company into a Delaware business?

How does IncParadise help you?

You may have your own reasons to opt for a business entity conversion in Delaware and it can be from any form of business to any other. What IncParadise can do is play an important role by providing meaningful assistance in the process of changing your business entity in Delaware. IncParadise is one of the most reputed registered agents with a strong physical presence in the state and we specialize in catering to varied requirements of new and existing businesses.

We also provide an array of additional services for your Delaware business including new business formation, S Corporation status, foreign qualification, EIN or Tax ID, and amendment of articles among others.