Delaware Incorporation Services
Formation
in Delaware
If you live in Delaware, or your business is based in Delaware, there is no legal requirement to form your new corporation or LLC there. However, for a small business entity that primarily or exclusively does business in Delaware, there is rarely an advantage to forming it in another state because you will still be required to qualify your entity in the state where you are doing business. This increases compliance requirements and maintenance costs related to annual filings and franchise fees in multiple states.
Choose Your Entity
C Corps
For founders who:
- Have no limit on the number of passive investors as shareholders
- Do not wish to limit investors only to individual persons
- Want liability protection for all shareholders
- Want governance of the corporation through a select board of directors
- Want to accumulate money in the corporation without having to pay distributions
- Want to pay tax on the corporation’s earnings at the corporate level
- Have shareholders willing to pay individual income tax on their dividend income
$1125
C Corps
$1125
For founders who:
- Have no limit on the number of passive investors as shareholders
- Do not wish to limit investors only to individual persons
- Want liability protection for all shareholders
- Want governance of the corporation through a select board of directors
- Want to accumulate money in the corporation without having to pay distributions
- Want to pay tax on the corporation’s earnings at the corporate level
- Have shareholders willing to pay individual income tax on their dividend income
S Corps
For founders who:
- Expect to have fewer than 100 shareholders
- Expect to have only individual shareholders (e.g. no corporate or LLC shareholders) who will pay their pro-rata share of the corporate taxes on their individual returns
- Want liability protection for shareholders
- Want governance of the corporation through a select board of directors
- Want to avoid taxation at the corporate level and pass it through to the individual shareholders on their individual tax returns
- Are willing to pay annual dividends to shareholders to cover tax obligations
$1125
S Corps
$1125
For founders who:
- Expect to have fewer than 100 shareholders
- Expect to have only individual shareholders (e.g. no corporate or LLC shareholders) who will pay their pro-rata share of the corporate taxes on their individual returns
- Want liability protection for shareholders
- Want governance of the corporation through a select board of directors
- Want to avoid taxation at the corporate level and pass it through to the individual shareholders on their individual tax returns
- Are willing to pay annual dividends to shareholders to cover tax obligations
LLC's
For founders who:
- Want maximum flexibility with respect to ownership
- Want management by a single manager, multiple managers, or all of the members
- Want minimal corporate governance requirements
- Want liability protection for members
- Want to avoid taxation at the company level and pass it through to each member on their individual tax returns
- Are willing to pay annual dividends to shareholders to cover tax obligations
$1125
LLC's
$1125
For founders who:
- Want maximum flexibility with respect to ownership
- Want management by a single manager, multiple managers, or all of the members
- Want minimal corporate governance requirements
- Want liability protection for members
- Want to avoid taxation at the company level and pass it through to each member on their individual tax returns
- Are willing to pay annual dividends to shareholders to cover tax obligations
Professional Entity
For founders who:
- Engage in certain professions that are licensed by the state in which they practice such as medicine, dentistry, chiropractic; nursing; marriage and family therapy; physical therapy, social work; law, and accounting;
- Shareholders are limited to individuals or other professional corps that are licensed in the field or authorized related fields
- Use the name of a professional licensee in the name of the entity
- Professional corps are in all other ways like regular corporations and can elect to be classified as C-Corps or S-Corps for tax purposes
$1225
Professional Entity
$1225
For founders who:
- Engage in certain professions that are licensed by the state in which they practice such as medicine, dentistry, chiropractic; nursing; marriage and family therapy; physical therapy, social work; law, and accounting;
- Shareholders are limited to individuals or other professional corps that are licensed in the field or authorized related fields
- Use the name of a professional licensee in the name of the entity;
- Professional corps are in all other ways like regular corporations and can elect to be classified as C-Corps or S-Corps for tax purposes
Factors to consider
Delaware has long been touted as one of the best states in which to incorporate. In the past, Delaware had the most liberal incorporation statute in the country, which gave management great flexibility in operating the corporation’s business. This flexibility was a great advantage to huge corporations that do business and have shareholders nationwide (or worldwide). However, this advantage is usually not important for smaller corporations. Also, most states have modernized their corporation statutes to make their laws more comparable to Delaware.
One long-standing advantage in Delaware is the existence of a separate court for the resolution of business disputes. Cases are often resolved more quickly and have the benefit of judges that are experienced in business cases rather than potentially being decided by a former prosecutor judging a complex business case.
For a small business that where complex business litigation is a remote possibility, however, the advantage Delaware may offer to a Fortune 500 publicly traded company is not likely to apply. In addition to the filing fees in the State of Delaware, you will need to register your business and pay the requisite fees in your home state. Further, your business may be subject to an out-of-state business tax, which will be in addition to Delaware’s franchise tax fee.
Comprehensive Pricing
Our Digital Incorporation Packages cover everything you need to legally form your entity and register with the IRS so that you can open your company’s bank account and get started.
- Expedited processing
- Personalized digital records
- Registered agent services for the first year
- Government forms preparation and processing
- EIN application
- Filing of Beneficial Ownership Information (BOI) Report.
How We Do It
How We Do It
The secret to our success is personalized attention. At Nationwide Incorporators, an attorney answers your specific questions and walks you through each step of the process.
The secret to our success is personalized attention. At Nationwide Incorporators, an attorney answers your specific questions and walks you through each step of the process.
STEP 1
Quality Check
An attorney thoroughly reviews your questionnaire and contacts you to resolve any questions
STEP 2
Name Availability Check
Your requested entity names are checked with your formation state for availability
STEP 3
Document Filing
We prepare and file your formation documents to create your new legal entity
STEP 4
Finalize Documents
An attorney prepares fully customized final documents and forms based on your package selection
STEP 5
Unlimited Free Support
An attorney is always here to provide assistance and answer questions about your new entity