The cost to form an LLC (limited liability company) or incorporate a business in Delaware is consistently among the lowest in America. And because Delaware imposes no income tax on either LLCs or corporations, and imposes no tax on capital stock for small companies, business owners are continuously drawn to Delaware for its pro-business and pro-privacy laws. Learn more about incorporating in Delaware by reading on:
Steps to take when incorporating your business in Delaware
1. Choose a name for your business. Selecting a name that aligns with your business message, product and service isn't always easy. You also want your customers to locate your business easily. Don't forget, you should include an identifier, such as Inc. or LLC to let the world know your business is a corporation or LLC. Additionally, it is very important to conduct a state name check, which lets you know if your desired name is already taken in the preferred state of incorporation. Consult our Delaware State Guide to find out more about naming requirements for LLCs and corporations.
2. Recruit and/or appoint members/managers (LLCs) or directors (corporations).
- Delaware requires a corporation to have one or more directors.
- Delaware does not specify age requirements.
- Delaware does not specify where directors must reside.
- Delaware does not require director names and addresses to be listed in the Certificate of Incorporation.
- Delaware requires LLCs to have one or more members/managers.
- Delaware does not specify age requirements of members/managers.
- Delaware does not specify where members/managers must reside.
- Delaware does not require member/manager names and addresses to be listed in the Certificate of Formation.
3. File the incorporation paperwork. A Certificate of Incorporation for corporations or Certificate of Formation for LLCs needs to be filed with the Department of State.