Corporation In Delaware – Some Basics You Should Know

2007-03-08 10:33:40

( Business )



When your business is growing, you will want to incorporate to separate your personal assets from your business assets. You also increase your ability to obtain loans and invite investors when you incorporate. For this purpose, you may consider registering a corporation in Delaware.

If you register a corporation in Delaware, you would be joining more than half a million businesses which, according to the state’s division of corporations, have made Delaware their legal home.

Delaware corp transactions are particularly benefited by its Court of Chancery. It is the only one in the country and is widely respected as the forum where internal disputes of corporations are settled.

Before you fill out the forms to register a corporation in Delaware, you should undertake a Delaware corporation search to ensure that your desired business name will not duplicate anyone else’s. You might as well do a trademark search simultaneously. These searches can take some time. Be particularly careful of trademark infringement, since this is punishable by fines.

One more thing before you’re ready for Delaware incorporation: you must determine what type of business entity you will adopt, whether it will be a Delaware corp (regular or special), or a Delaware llc.

Delaware incorporation is a straightforward process, and you can do it by yourself online. You can opt to engage the services of incorporation agents to save your valuable time. Beyond taking steps for form your Delaware corp or Delaware llc, you need to contact other offices which will be interacting with your business.

For one, you will need to complete certain requirements with the Internal Revenue Service, including obtaining your Employer Identification Number (EIN). The EIN is necessary when your corporation in Delaware elects to be an S corporation, or whether your Delaware llc elects to be taxed as a corporation or as a partnership.


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