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Business Registrations in Delaware

Delaware: benefits of business registration

24. 11. 2022
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Business registration in Delaware is one of the best options if you want to register an LLC in the United States. A company that operates out of state can pay no income or gross receipts tax. Delaware does not impose fees on intangible income, and the price for government services is lower than in many U.S. states.

Delaware's business advantages

  • An organization can have a simplified structure, meaning one person can be both an owner, shareholder, and director.
  • The owners, directors do not have to be local residents.
  • If the LLC does not operate in Delaware, you may not have to file an annual report.
  • Fast business registration.
  • The firm must hire a local agent through whom it will be contacted by the authorities. However, it can act as one on its own if it operates within the state.

Taxes

Delaware does not have many fees, which is why it is sometimes called a tax haven. If a company doesn't operate in the state, it doesn't have to pay these taxes:

  • corporate;
  • inheritance;
  • stock if the owner is not a local resident, including aliens;
  • state sales taxes;
  • intangible property (royalties).

Privacy

When applying for registration, the names of owners, directors, and officers may not be disclosed. Owners are not required to publish the details of the members and managers of the LLC. The law identifies only 2 situations when information cannot be withheld: at the request of the court or law enforcement agencies.

Court of Chancery

An important advantage of the state is the legal protection of the company under corporate law. The Court of Chancery is the oldest business court in America, which is not heard by a jury, but by judges who are well versed in corporate law. This means that LLC owners/shareholders have a better chance of a fair decision, and the court's verdict can be predicted.

Peculiarities of business registration

A firm established in Delaware is required to have an agent registered here (our company provides such service). The application must be filed with the Delaware Division of Corporations. Despite the embarrassing word "corporation," the division works with all business entities.

Opening a company in Delaware follows this pattern:

  • Come up with a unique name.
  • Specify an officially registered agent, through whom the authorities will communicate with you, it will be possible to open a bank account.
  • Obtain a business license from the state Department of Revenue.
  • Formalize the company with the Division of Corporations. If you are incorporating a foreign LLC, you will need to fill out a special certificate.
  • Draw up an LLC operating agreement, where you must specify the purpose of the company, the intended services, the details of the owners, the share of each member, the procedure for accepting new members. The agreement must be signed by each owner of LLC.

After opening a business and registering a bank account in Delaware, it is important to comply with all state regulations. As for taxes, you have to pay $300 annually, plus tax on gross receipts, federal fees, including self-employment and payroll taxes.

How to incorporate an LLC

To open a business in Delaware in 2022, contact an IT-OFFSHORE manager.

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