Delaware has been known as a place for business incorporation since It offers different benefits and advantages for entrepreneurs. If you are considering setting up a business in this state, below is a summarized guideline describing the major steps and requirements.
How Can Foreigners Incorporate a Local Company in Delaware?
1-Choose a name and a structure for your business:
You must decide what structure of business you are going to establish. Five different options are available as follows:
- Sole Proprietorships
- S Corporations
- Limited Liability Company (LLC)
Always remember that the business entity type determines the income tax you are going to pay. For more details about legal structures you can visit the IRS business structures’ web page. Regarding the name keep in mind that business names should be unique.
2-Get the required licenses and register your business:
- Make sure if you need a Federal tax identification number by visiting this web page. Then Apply online to get one through this link.
- Get your general Business License from the Division of Revenue, you can use Delaware One Stop platform.
- If you are planning to have employees in Delaware you need to register with Division of Unemployment Insurance and the Division of Workers’ Compensation at the same platform.
- For any additional requirements and licenses for specific profession and industries make sure to check this list.
How Much Does It Cost to Incorporate a Company In Delaware?
The incorporation fees in Delaware vary based on many factors including the number of shares and the par value. The minimum amount to be paid is 89$.