How to Register a Company in Delaware?
Tetra Consultants advises you to read through this guide to fully understand the steps required on how to incorporate a company in Delaware. Our formation package will get you on your way to setting up your corporate home in Delaware. Tetra Consultants advises you to read through this guide to fully understand the steps required on how to incorporate a company in Delaware.
Simply put, we can break down each engagement into three different phases:
- Planning & strategy
- Bank account opening
- Staying compliant
By systematically following the above three phases, you can expect to start conducting business with your Delaware company within 5 weeks.
Planning and Strategy
- The most critical part of incorporating your company is to determine the optimum business entity you should adopt. After considering the various advantages and disadvantages of each business structure, Tetra Consultants will recommend a suitable business entity.
- This recommendation will also be made based on the type of business activity, tax obligations and nationalities of your shareholders and directors. Generally, for most international clients, Tetra Consultants will recommend incorporating a Delaware limited liability company.
- For clients who are looking to apply for licenses, our team will further advise on the requirements. We will also assist in obtaining relevant business licenses and registrations with Delaware’s state agency. If required, Tetra Consultants will also provide you with a local registered address and a registered agent.
- Our team will also further assist to obtain a Federal Employer Identification Number from the Internal Revenue Service.
- Tetra Consultants will reserve your preferred company name with the Delaware Division of Corporations. Necessary due diligence documents will also be collected at this point.
- To register company in Delaware, Tetra Consultants will assist you to file corporate forms and certificates with the Delaware Department of State Division of Corporations. Tetra Consultants will also provide you a local registered address and a registered agent.
- To proceed with the new entity filing, we will also make the necessary arrangements to acquire a good standing certificate if necessary. Within 1 week, Tetra Consultants expects to provide you the corporate documents of the newly established Delaware company. Some of these documents include a Certificate of Formation.
- The Certificate of Formation comprises the company name and company number as well as the Memorandum and Articles of Association.
Bank Account Opening
- Upon registration, Tetra Consultants will help our clients to open a corporate bank account within 4 weeks. Our team has established partnerships with multiple reputable banks in Delaware. Tetra Consultants’ banking team is experienced in this field and we will be able to timely secure banking solutions within the stipulated deadlines.
- Typically, a corporate bank account opening will take roughly 4 weeks. In most cases, the directors and shareholders are not required to travel to Delaware. However, if travel is required, Tetra Consultants will have a representative to accompany you to the bank meeting.
- Alternatively, our team will negotiate with the banks to conduct a conference call instead or to request for a waiver. This is to minimize any engagement delay and to secure corporate bank account numbers at the soonest.
- As all Delaware-incorporated corporations are required to file an Annual Report and pay a Franchise Tax, we will continue to remind our clients annually about the necessary due charges.
- This is to ensure that you can continue to legally conduct business with your Delaware entity while staying compliant with regulatory obligations.
Why do so many companies incorporate in Delaware?
- Delaware is considered to be the incorporation capital of the world simply because taxation is favorable in terms of income tax, sales tax, property tax, and investment tax.
- Moreover, the Court of Chancery has a well-respected and distinctive judicial system that is specialized and experienced in commercial issues. It is also easy to get funds from venture capitalists.
- Additionally, when compared to other states, corporate privacy is at a greater degree, therefore it becomes an attractive jurisdiction for foreign investors.
What are the different types of entities available in Delaware?
- Delaware is a hub to a diverse range of companies that include sole proprietorship, corporation, general partnership, a public benefit corporation, limited liability company, statutory trust, and more.
What is Delaware LLC?
- In the United States, an LLC is a relatively modern type of company. It combines the limited liability of a corporation with the pass-through taxation of a partnership if correctly organized. It is crucial to note, however, that while LLCs can be recognized as partnerships, they are not corporations.
- An LLC is a business entity that has a legal existence separate and apart from its owners. Owners and management are not personally accountable for the debts and liabilities of the firm.
Why is Delaware the best state to form an LLC?
- Two major perks of establishing an LLC in Delaware are the low fees and taxes. Accordingly, Delaware does not tax out-of-state income for foreign LLCs, and to entice businesses, Delaware also has low filing fees and franchise taxes.
How do I set up a holding company in Delaware?
- A Delaware holding company is equivalent to an LLC for which Tetra Consultants will assist you to file corporate forms and certificates with the Delaware Department of state division of corporations.
How long does it take to register a company in Delaware?
- Tetra Consultants will register a Delaware company within 1 week.
Are there any yearly compliance requirements for Delaware company?
- Yes, Delaware-incorporated corporations are required to file an annual report and pay a franchise tax, we at Tetra Consultants will continue to remind you annually about the necessary due charges.