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:
- 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.
- 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).
- 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).
- 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.
- 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.
- 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
Start Your Business Today for Only $70.00 Plus State Filing Fees.