Delaware Company Formation: The Fast-Track Route To Success

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What are the advantages of forming a company in Delaware? Well, there's a lot! Read on and learn about the possible benefits.

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Company formation – or business formation – refers to the process of incorporating or registering a business of yours as a legal entity. Registate, a company formation service, recommends that businesses incorporate their companies in Delaware because of the state’s unique advantages.

You can register your enterprise as a limited liability company (LLC) or as a corporation with the no-fuss, professional assistance of Registate. It depends on what company type will suit your business, but one thing is for sure: incorporating your company provides you with benefits that you won’t have access to if you stay as an unregistered business venture.

What are the benefits of incorporating your business?

Capital access

If your company is incorporated, it is easier for you to raise capital. Financial institutions such as banks require legitimacy from businesses before approving loans.

Personal assets protection

Becoming a registered company means you become a separate legal entity. When troubles arise due to debts, you won’t have to give up your personal assets to pay for them.

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Better company image

When you have “LLC,” “Inc.,” or “Corp.” in your company name, people will see you as a stable business. It gives you a professional corporate image and credibility in the eyes of potential customers, partners and vendors.

Tax purposes

As a registered business, your company will be taxed based on your profits. These taxable profits can be significantly reduced by accounting for business expenses.

What are the advantages of Delaware company formation?

Many major companies around the world have been incorporated in Delaware. In fact, two thirds of Fortune 500 companies are incorporated in the state, such as Facebook and Google. Entrepreneurs choosing to register their companies in Delaware is actually nothing new. It’s one of the essential hacks in the business world that you should know when you set up a company.

Company formation in Delaware is simple and stress-free. The state administration is business-friendly plus the Delaware General Corporation Law is extremely accommodating when it comes to management. Aside from that, the Delaware Court of Chancery provides legal certainty thanks to its team of judges that specializes in the field of commercial law.

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In addition, Delaware doesn’t have a required minimum capital when it comes to starting a business. It also doesn’t levy a lot of fees and only has a few recurring compliance matters, like the yearly Franchise Tax and annual reports for businesses that are registered as corporations.

What makes things even more convenient is that you don’t have to be physically present in Delaware to register your business there. Another major benefit is that foreign and domestic investors are subject to the same set of laws and regulations. Moreover, the state only shares limited information about the company it incorporates. All the data about the company structure and its internal affairs will not be made available publicly. 

What do you need to register your business in Delaware?

Requirements for incorporating businesses are almost the same everywhere. You start with deciding which entity type will suit your business best and choosing a state where to incorporate your business. So, whether it’s in Delaware or someplace else, you’ll start at the same point.

After choosing the company type, it’s time to think of your company name. It has to be appropriate and unique. Fortunately, you don’t have to mention your business activity in the name. Once you’ve done that, it’s time to register your business in Delaware. If you’re not a resident in Delaware, you’ll need the help of a professional registered agent.

Registate as your chosen Delaware Registered Agent

Delaware requires all entrepreneurs to have a registered agent who will serve as the state’s point of contact. The agent will be the mediator between the company and the state’s Division of Corporations. They are also in charge of receiving all formal documents, both legal and official, such as state notifications and services of process. 

Looking for a Delaware Registered Agent may eat up a lot of your time. To make things easier, you can simply appoint Registate as your agent. 

All about Registate

Registate is more than just your typical company formation service. It also provides virtual mailbox, registered agent, and a whole spectrum of solutions that cater to different needs. In addition, Registate even performs quick and efficient foreign qualification and apostille services.

The company’s list of services is growing all the time as they’re continually in the process of expanding and innovating procedures to be able to serve clients as effectively as possible. The primary goal is to absorb all the hassles faced by clients and facilitate their success.

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Registate was founded by a group of people who truly understand the spirit of entrepreneurs. They formed the company to open doors of opportunities for every business owner who wants to make it big in their chosen venture.

What can Registate do for you?

  • After filling out the Company Formation Form, Registate will review all your information. It will need your proposed company name, chosen company type, state, and contact details. 
  • Registate will file your application directly to the State of Delaware, having first ensured that everything is in order. They will notify you as soon as you have been approved. 
  • A customer service representative will get in touch with you promptly if any issues are detected. They will help to correct everything before proceeding to file your application to the state.
  • Once approved, Registate will still continue to stay in touch with you to update you regarding Franchise Tax and/or Annual Reports filing.

More company formation tips

As mentioned above, being incorporated allows you to access a lot of benefits. However, it’s also important to follow all rules and regulations. Incorporation has its own laws provided by the state. Some of these rules include keeping accurate financial records, issuing stocks, and conducting annual meetings for elections of directors and officers. 

In addition, ensure that you always identify your business properly. Add “Inc.” or “Corp.” at the end of your company name, as appropriate. You should also make it clear that you’re an officer of your company when dealing with your clients. Moreover, don’t use corporate checks when paying for personal expenses. Keep the company’s finances separate from those of the owners.

Operating as an incorporated entity entails some additional expenses compared to sole proprietorship. However, the many benefits significantly outweigh the costs, especially if you do it in the early stages of your business. 

The great news is that the experts at Registrate will ensure full compliance and get you on the right track that leads to success.

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