Filing A Delaware Corporation
Choosing to register a new business as a Delaware Corporation could have numerous benefits. Not only does the Corporation structure offer tax benefits, but it also helps firms gain credibility with their customers. However, when filing as a Delaware Corporation, prospective business owners must ensure they meet all administrative requirements.
Steps To Filing a Delaware Corporation
Choose A Name
The first thing that those looking to form a business must do is choose a name for their entity. The state of Delaware requires companies to include an indicator in their name, such as, “corporation,” “company,” “limited,” “incorporated,” or any abbreviation of such, such as “Inc.” Additionally, the chosen entity name must be unique. It cannot already be in use by another organization. By using the DoMyLLC Name Availability Check Page, new business owners can ensure that they don’t choose a name that’s already in use.
Choose An Agent For Service Of Process
After choosing a name, Delaware owners will then need to select a registered agent. The registered agent is responsible for accepting all legal correspondence on the company’s behalf. As you can likely imagine, the registered agent’s role is critical to a company’s success. Because of this, many Delaware businesses elect to utilize the services of a professional third-party company, such as DoMyLLC.
File Articles Of Incorporation & Pay Filing Fees
Once new owners have chosen a name and registered agent, they’ll need to file a Certificate of Incorporation with the Department of State’s Division of Corporations. The filing fee is $89. Owners can elect to expedite the filing by paying fees ranging between $50 and $1000. Below, you’ll find an overview of the information needed for this form:
- The name of the company
- Information about the registered agent, including name and address
- Purpose of the corporation
- The total amount of stock the corporation is authorized to issue
- The par value per share
- Name and mailing address of the incorporator
File Initial Report
Delaware does not require a Corporation to file Initial Reports. However, if a Corporation were to expand to another state, there may be Initial Reporting requirements.
Create Corporate Bylaws, Appoint Directors And Hold Meetings
Once Delaware has authorized the Corporation to begin conducting business, members should hold the initial corporate meeting. Those who filed Articles of Incorporation are responsible for overseeing the meeting. Incorporators should appoint individuals to the board of directors at this meeting and record this information in the corporate records. Directors will serve on the board until the next annual meeting of the shareholders, where they will be up for re-election.
Once in place, the board can elect officers and define the role of each member. They can also draft corporate bylaws. A Corporation cannot exist or conduct business until the board of directors has adopted bylaws. Bylaws serve as the internal operating manual for the company and are not made available to the public. However, many banks and insurers require proof of bylaws to enter into business with a Corporation.
A Delaware Corporation is required to issue stock. At the initial corporate meeting, directors can discuss who can purchase stock and at what price point the stock will be sold. The board of directors will need to give approval to issue any stock. The amount of stock they can issue should have been defined previously in the Articles of Incorporation. The board can issue stock at any point during the life cycle of the Corporation. Additionally, a stock transfer ledger is required to maintain with the internal records of the Corporation. It is critical as it protects the corporate veil and provides visibility for future investors.
Obtain Employer Identification Number
It’s also critical that a new Corporation secures an Employer Identification Number from the IRS. This number is necessary to file taxes, hire employees, and open a business banking account.
File State Required Annual Reports
A Delaware Corporation will also have to file an Annual Report each year. This report is due by March 1 each year. There is a minimum filing fee of $50 to submit this report. Companies will also have to pay a Franchise Tax each year. Business owners can learn more at our Delaware Annual Report page.
In addition to filing an Annual Report, a Delaware Corporation must also submit state and federal taxes and renew all licenses and permits each year.
How DoMyLLC Can Assist With Streamlining The Process
As a new business owner, you likely want to dedicate your time to growing and expanding your company. At DoMyLLC, we are happy to help you do so. We streamline the process and handle your administrative responsibilities. Our services include:
- Name availability check
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Secretary of Delaware’s office
- Provide sample bylaws, meeting notices and minutes for meetings
- Dedicated account manager
- Unlimited customer support
Investing in our affordable services could do wonders for your business. We look forward to helping you succeed!