How to Set Up a Company in Delaware?
Are you looking to set up a company in Delaware? If yes, you are certainly on the right track. Delaware is the second-smallest and least-populated state in the United States. The place is best known for its immensely business-friendly corporate laws. Today, we will walk you through the various steps of setting up a company in Delaware to expedite your journey to success. So, let’s begin.
A Look at the Delaware Business Environment
The state of Delaware has a congenial and efficient business environment. The governmental laws in the state are highly flexible, accessible, and easy to work with. Most importantly, the tax regulations are highly favorable that attract many startups. The cost of doing business is also substantially lower as compared to many other states in the country.
How to Set Up a Company in Delaware?
Now let’s look at the different steps involved in the process of setting up a company in Delaware.
1. Finalize the Business Structure
Before setting up a company, it is crucial to decide on a feasible business structure. Typically, the most common legal structures for business include:
- Sole proprietorship
- LLC or Limited Liability Company
Apart from these, there are also some specialized versions of these legal structures such as S corporations or Limited partnerships. You can choose the one that best matches your business goals before you set up a company in Delaware.
2. Choose a Unique Name for Your Business
You need a name for your business to distinguish it from other business entities. Make sure to select a name that is easy to remember and catchy at the same time. You can browse through the Delaware Division of Corporations (DOC) website to check the available names and reserve a name for up to 120 days by applying online.
3. Register the Business
To set up a company in Delaware, you need to register it with the concerned business authorities. Company incorporation in the USA is a slightly complex process that may involve filing several forms and documents.
For instance, if you have decided to form a Corporation, you need to file a Certificate of Incorporation- Stock Corporation with the Secretary of State in Delaware. You can file articles online that must include the business name, registered office address, number of shares the corporation will issue, etc.
4. Apply for an Employer ID Number
After incorporating a business in the USA, the next step is to apply for an EIN, also known as a federal tax ID number. Many times, people who are doing business alone, without any employees, forgo filing for an EIN. In that case, they will have to use their personal social security number for taxation purposes. This is not advisable as it may lead to personal identity theft. So, it is best to apply for an EIN online by visiting the IRS website.
5. Apply for a US Bank Account
Every business must have a business account that is separate from the owner’s personal finances. You can check with the top banks in Delaware to find out the type of business solutions they offer to set up a company in Delaware.
Each banking institution has varying requirements. However, you can expect to keep the following documents handy while applying for a bank account.
- Personal identification documents
- All organization structure documents
- Employer Identification Number
- Legal business resolution authenticated by the business owner to open a bank account
6. Apply for Licenses and Permits
The next step to set up a company in Delaware is to apply for the necessary licenses and permits. The state of Delaware requires all companies to carry specific permits, depending on the type of business. It is best to hire an attorney to take care of all licenses.
7. Purchase Business Insurance Policies
Finally, the last step is to purchase specific insurance policies based on your industry. Often, businesses invest in general liability insurance, worker’s compensation coverage, and owner’s insurance. All this helps to protect your business assets and provide the necessary coverage in unforeseen circumstances.
With these steps, you can easily set up a company in Delaware and launch a thriving business. Once the business is registered, you can create an imaginative logo and website to represent your business. You can also create social media accounts to advertise your company and boost brand awareness.
We are Ready to Help You
You may need assistance with the following issues during the establishment of your business, the running of business operations, or the stages of closing your business.
- Create a Business Plan
- Choose a Business Structure
- Choose a Location
- Finance Your Business
- Building Permits and Inspections
- Buy an Existing Business
- Licensing and Certification Guide
- Business Resources
- Starter Kits
- Register Your Business
- Hire Employees
- Filings and Accounting
- Business Preparedness
- Manage Employees
- Closing Your Business
- Paying Taxes
- Contract with the State
- Market Your Business
- Open Another Location
Expert lawyers and professional consultancy save you time and money at these stages. We are always ready to help you.
To start and run your business in the USA, you need a lot of documentation to be prepared. When you need business licenses and permits, we can help you. You cannot be an expert in every subject you need. An expert consulting firm you can trust will save you time and money.