Delaware is a popular state for company formation due to its favorable business laws and tax structure. If you are considering starting a company in Delaware, there are several basic steps that you should take to ensure that your company is formed properly and legally.
Step 1: Choose a business name
The first step in the process of company formation in Delaware is to choose a business name. The name should be unique and not already in use by another company in the state. You can check the availability of your desired business name on the Delaware Secretary of State’s website.
Step 2: Choose a business structure
The next step is to choose a business structure. The most common business structures are a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has its own benefits and drawbacks, so it is important to carefully consider which structure is best for your business. Gather details about the procedure of standard llc registration in Delaware.
Step 3: File formation documents
Once you have chosen a business name and structure, you will need to file formation documents with the Delaware Secretary of State. The documents required vary depending on the business structure you have chosen. For example, if you are forming an LLC, you will need to file a Certificate of Formation. If you are forming a corporation, you will need to file a Certificate of Incorporation.
Step 4: Obtain necessary permits and licenses
Depending on the nature of your business, you may need to obtain permits and licenses from the state of Delaware or local government agencies. For example, if you are starting a restaurant, you will need to obtain a food service permit.
Step 5: Obtain an Employer Identification Number (EIN)
An EIN is a unique nine-digit number that the Internal Revenue Service (IRS) assigns to businesses for tax purposes. You can obtain an EIN by completing an online application on the IRS website.
Step 6: Register for state taxes
If your business has employees or sells taxable goods or services in Delaware, you will need to register for state taxes. You can do this online through the Delaware Division of Revenue.
Step 7: Draft bylaws or operating agreements
Bylaws or operating agreements are documents that outline how your business will be run. Bylaws are used for corporations, while operating agreements are used for LLCs. These documents should include information such as how decisions will be made, how profits and losses will be divided, and how disputes will be resolved.
Step 8: Open a business bank account
Once the process of your company formation in Delaware is complete, you will need to open a separate bank account for your business. This will help keep your personal and business accounts separate. You would remain well-organized from a practical perspective when you register company in Delaware and there would be no issues in handling your business matters.
Consult top experts
It should be your priority to seek expert help from professionals who have several years of experience in opening a firm in Delaware. Consult with the experts and move accordingly.
