We’re road trippin’ to “The First State,” Delaware! Delaware also has a second state nickname, “The Diamond State” which was given by Thomas Jefferson who claimed it was “a jewel among the states” in reference to its location on the Eastern Seaboard. It’s also one of the 13 original states to ratify the federal Constitution.
Delaware may be the second smallest state in the country, but it’s also one of the most densely populated and home to a multibillion-dollar tourism industry. As such, it attracts the attention of small businesses! According to the Delaware Secretary of State, more than one million business entities have incorporated in Delaware. The state famously has a reputation for being an entrepreneurial tax haven, thanks to its business-friendly corporate law.
Ready to start a small biz in this seaside state? Here’s what you need to know about incorporating in Delaware.
1. Choose the appropriate business entity type. Whether you choose to file as a corporation, public benefit corporation, limited liability company (LLC), limited partnership (LP), etc. you must file with the Delaware Division of Corporations. However, if you are filing as a sole proprietor, you are not required to file with the Delaware Division of Corporations. You will also want to conduct a search and choose a name for your business that is unique and not already in use.
2. Next you must obtain a registered agent. The state requires that every business entity has a registered agent. The RA can be a resident of Delaware or a business entity that is authorized to do business in Delaware.
3. In Delaware, you can reserve an entity name. While this is not a requirement to form your business entity, this reserves the name chosen for 120 days. This process can be accessed online and the fee is $75.00. If you are choosing to complete the request in writing here is the PDF form.
4. One of the final steps is complete your certificate for filing. You can complete this process by mailing or faxing the documents. All filing fees must also be paid upon submission of the request.
5. They also participate in the SCORE program. SCORE helps give advice and mentor entrepreneurs looking to start a new business or even expand upon an existing business. The best part about this program is that it’s free!
If you are still interested in starting a business make sure to visit the state of Delaware’s government website for more information. Stay connected with all the latest updates through the state’s Facebook page.
Thinking about starting a small business in Delaware? Give us a call at 1(877) 692-6772 or visit us at mycorporation.com if you have any questions about forming a business or the regulations required.
Welcome back to the 50 States of Incorporation, Rebooted where we share what it takes to start a business in each of the 50 states. Join us biweekly for advice on how to start an LLC or corporation across the United States.