Tips on Delaware Incorporation 

Delaware has a reputation for establishing a pro-business environment and this is the primary reason why a lot of businessmen consider incorporating their businesses in the state. Compared to others, government agencies in Delaware are designed to accommodate business owners and investors with little bureaucracy and red tape because they know that these businesses will benefit their interests.

Below are some tips on Delaware incorporation:

1. There is no residency required from business owners to be able to set up their corporation. Yes, you may actually incorporate your business even when you live in Los Angeles, New York, or elsewhere. However, as things are, you may need to hire a resident to run your business site in Delaware. Additionally, Delaware imposes no corporate tax nor inheritance tax and shareholder tax for non-residents, a benefit much appreciated by many businessmen. Corporations may also keep their books in order from outside the state.

2. Delaware also does not impose the following on any business enterprises:

• No personal property tax
• No sales tax
• No intangible property tax for corporations

However, it imposes a franchise tax. But regardless, it is still competitive and favourable compared to other places in the United States.

3. There is no required minimum capital in Delaware and the cost of incorporation in this state is probably the lowest across America. You may, however. need to procure important documents such as a Certificate of Good Standing or Corporate Kits.

A Certificate of Good Standing or Certificate of Existence endorses companies attesting their business is current with filing of proper documents needed in maintaining business interests. It is given by the Delaware Secretary of State and business owners may use this when applying for bank loans or expanding their business to other areas.

A corporate kit has some of the following pertinent information regarding the nature of your business:

• Company Seal
• Share certificates
• Company By-Laws
• List of Officers
• Minutes and Schedules of Meeting
• Company Benefits

4. You will also have to apply or file for an EIN. A fee of about $50.00 will be asked for this. You will need to fill out Form SS-4. To expedite processing, provide your Social Security Number or your ITIN. An EIN is very important because you will need this to open a bank account in Delaware.

5. Delaware is the only state in America that allows a business executive to hold other positions in its own corporation. Many small-businesses actually benefit from this provision because with it, there is no need to enlist other people to serve in the corporation. The owner may even have full control of the corporation in this case.

6. The Laws of Business and Commerce in the state of Delaware is favourable to many corporations. Legislatures on corporate laws are kept up to date and a separate form of legal system is employed by the state in terms of overseeing corporate cases. In Delaware, a judge presides on deliberations concerning businesses, not a jury.