DE Incorporation

Incorporating a corporation in Delaware is very popular among startups and venture capitalists.

With a DE incorporation you can take the company public in the future. You cannot take a Limited Liability Company (LLC) public.

By setting a DE corporation, you'll be able to raise funds in the public markets.

Here are some additional features of the Delaware Stock (General) corporation:

Reporting

• With a Delaware corporation you do not have to name an initial director.
• A DE Corporation is required to file an Annual Report which must include:
  • The business address and phone number
  • The name and address of one officer
  • The names and addresses of all Directors
  • The shareholders are not listed on the annual report and are not reported to the state.

Income Tax

• There is no Delaware state corporate income tax on goods or services provided by DE corporations operating outside of Delaware.
• Delaware Sales Tax is zero (0%).
• Tax Status:
  • The default tax status is stock corporation. A stock corporation pays income tax at corporate rates and files a corporate income tax return known as an IRS form 1120.
  • If eligible, the corporation may elect S-Corporation tax status. An S-Corporation is taxed at personal income tax rates and the profits and losses are reported on the personal income tax return.
  • If organized as a not-for-profit corporation, the company can apply for tax-exempt 501(c)3 status from the Internal Revenue Service (IRS).

Liability

• The liability of all shareholders (owners) is limited to their investments in the corporation (unless they personally guarantee other debt incurred by the corporation, commit fraud or commingle funds).

Compliance

• A DE corporation is required by law to maintain a Registered Agent in the state of Delaware. We can be your Delaware Registered Agent.
• The first 12 months of Registered Agent service is FREE with the purchase of a new DE incorporation. The service is $100 per year for billing addresses in the US and $120 if your billing address is located OUTSIDE of the United States.
• A stock corporation authorizing 5,000 shares or less will pay the minimum Franchise Tax of $175 plus a $50 Annual Report Filing Fee.
• A DE stock corporation has the right to conduct Interstate Business and DBI can qualify a Delaware corporation to conduct intrastate business.

International

• Non-resident, non-citizens are eligible to form a stock corporation or a not-for-profit corporation in Delaware.
• Non-residents are not eligible to apply for S-Corporation tax status.
• A Delaware Corporation with no US Source Income will not owe US Federal Income Tax.

Investment

• A DE corporation can raise capital by selling shares of stock privately or on a public stock exchange.
• Ownership of a DE corporation is recorded on stock certificates.

Included in all incorporating services:

• Company Name Check Verification & Availability
• Preparation & Filing of Articles of Formation
• Same Business Day Processing
• Registered Agent (1st Year FREE)
• Email Reminders & Alerts
• Lifetime Customer Support