How To Incorporate Your Business in Delaware

Forming a corporation is fairly easy to do in any state, particularly in Delaware, the country's corporate home. There are over 800,000 businesses that are legally located in Delaware, including over half of the Fortune 500 and U.S. publicly-traded companies. Businessmen choose Delaware because the state provides many personal incorporation services like business-friendly state government, a Court of Chancery, and flexible corporate laws. Read on to find out how to incorporate your business in Delaware.

1. Select your business entity's type. You will have to choose your business entity type independent of the Delaware Division of Corporations. It is highly recommended that you contact a Certified Public Accountant or an Attorney with experience in Delaware Law for advice on what business entity type best suits the needs of your business. All Limited Liability Companies, Corporations, Limited Partnerships, and General Partnerships have to apply to the Delaware Division of Corporations. Other partnerships and non-profit organizations have to submit certain applications to the Delaware Division of Corporations.
2. Get a registered agent. Before you can be a corporation, you will need a registered agent from Delaware that is either authorized to do business in Delaware or who is a resident of Delaware. Your registered agent needs to have a physical address located in Delaware.
3. Reserve your business name. The Delaware Division of Corporations will allow you to reserve your business name. When you reserve your business name, the name will be held for you for 120 days. Business name registration can be done online and will cost $75. You can use your credit card to pay for it. Print out the confirmation page and present it to the Delaware Division of Corporations. Alternately, you can physically submit your application. The form can be downloaded at the website.
4. Submit the Certificate of Incorporation form. Visit the Delaware Division of Corporations website to download the required forms. You can mail or fax these to the office along with a cover sheet containing your business name, return address, and contact number.
5. Submit the completed certificate. The completed forms can be mailed or faxed to the office or submitted in person. You will also have to pay the filing fees upon submitting your request.
6. Submit Certificate of Status or Good Standing. There are some banks that will require a certified copy of your filing or a good standing certificate. Please ask your financial institution to see if you will need additional information before you can create a business account with them. You can also order a Certificate of Good Standing from the Delaware Division of Corporations while you file your new entity for $30.00.
7. Pay annual taxes or franchise taxes. All corporations in Delaware must file an Annual Report and pay franchise taxes, except for non-profit, non-stock, and religious corporations. The fee for annual report filing is $25 plus taxes, which are all due when you file the annual report. The deadline for all taxes and annual reports is March 1 of every year.