How to Incorporate a Business in Delaware

A corporation is a legal entity that is comprised of and controlled by other entities, including individual people and other corporations. It creates a distinction between the employees and the business itself, protecting those who work within the corporation from financial liabilities beyond their own investment. It is easy to incorporate a business in just about every state. Delaware is no exception.

Difficulty: Moderate

Instructions

1. Visit Delaware's Division of Corporations website (see Resources, below) to download the forms needed to incorporate in the state. It's also possible to contact the Secretary of State's office directly by calling [phone].

2. Find out if the name you wish to use for your corporation is still available. Use the "Name Reservation" link found on Delaware's Division of Corporations Web site. This service is available only during business hours and requires a fee.

3. Complete the name reservation process online or complete the Name Reservation form available from the Secretary of State's Web site. There is a fee for name reservation.

4. Complete your corporation's Articles of Incorporation. The Articles of Incorporation must include answers to every question on the form. A fee is required in order to document the Articles of Incorporation. A franchise tax prepayment is also required for certain corporations (nonprofits are exempt).

5. Anticipate the process for verification and documentation of your Articles of Incorporation to take at least 4 weeks, depending on the speed with which it is processed at the office of the Secretary of State. It can take as long as 10 weeks, but that is rare. Once your paperwork has been properly filed, you will receive a copy of your Articles of Incorporation as well as your Employer Identification Number (EIN).

Tips & Warnings

• While there is no need to hire an attorney or legal counsel to incorporate a business in Delaware, if you're new to the process or have a lot of questions and concerns, then you might want to consider it. A business law professional can make the process simpler and can handle details unfamiliar to you.
• There are online services that handle the details of incorporating your business for you, but be sure you understand their costs before agreeing to their service.
• The franchise tax and first year prepayment in Delaware is one of the highest in the nation, so be sure you accurately calculate your tax liability when incorporating.

Resources

• Visit the Delaware Business Portal to find the forms needed to incorporate a business.
• Head to Busintess.gov for access to in-depth informaton about the laws of incorporation in Delaware

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