Setting the Stage for Success How to Set up Your Company in Delaware 

• Many companies opt for a Delaware company setup due to the state’s advantageous tax policies and sophisticated corporate laws. Delaware offers significant tax benefits, such as no corporate income tax for businesses not operating within the state, substituting it with a minimal franchise tax.  

• Additionally, Delaware does not impose a state sales tax or property tax, significantly lowering operational costs for businesses that choose to operate there. Even companies conducting business within the state can often sidestep corporate income tax. Delaware’s legal environment is particularly appealing, featuring advanced corporate legislation and a specialized Court of Chancery that handles corporate disputes efficiently. These benefits make the decision to register company in Delaware highly attractive for many corporations, ensuring a supportive and predictable legal framework that caters specifically to their needs. 

Steps to setup company in Delaware 

Step 1: Name reservation 

• Selecting a name that aligns with your business message, product, and service is not always easy. You also want a name that appeals to your customers and is easy to remember. 

• Initially, Tetra Consultants will proceed to conduct a state name check to ensure your desired name is not already taken in Delaware, your preferred state of incorporation. Delaware’s rules for corporations and LLCs require that an LLC name contains “Limited Liability Company” or “LLC,” be distinguishable from other business entities, and not be misleading or harmful. Tetra Consultants provides name reservation services and international trademark registration to protect your company name. 

Step 2: Appoint a registered agent 

• Moving further, Tetra Consultants will proceed to appoint a qualified registered agent for your Delaware company setup. This agent will have a physical office address in Delaware (no PO boxes), ensuring compliance with state requirements and providing a reliable point of contact for all legal and tax correspondence. 

Step 3: File for certification 

• Once a registered agent is appointed, our experts at Tetra Consultants will continue to file the Certificate of Incorporation with the Delaware Secretary of State. This document will include essential information such as the company name, purpose, registered agent details, and information about the shares. This step is crucial for officially establishing your Delaware company and ensuring compliance with state regulations. 

Step 4: Prepare corporate bylaws 

• Furthermore, our experts at Tetra Consultants will proceed to file the Delaware Certificate of Incorporation, which serves as the birth certificate of your Delaware corporation, proving its formation and registration. This document can be filed online or by mail through the Delaware Secretary of State and must include the company’s name and entity type, the registered agent’s name and address, the number of authorized and issued shares, the corporate purpose, and the company’s street and mailing address.  

• Additionally, the incorporator’s name and address are required, as they are responsible for filing and signing the incorporation documents. A cover memo must accompany the Certificate of Incorporation, either created automatically online or downloaded from the State of Delaware. 

Step 5: Comply with statutory requirements 

• There are various statutory requirements which depends on the type of business structure which the client opt for. There requirements for LLCs in Delaware may include: 

• Delaware requires LLCs to have one or more members without residency requirements. 

• Members are not required to be listed in the Articles of Organization. 

• No minimum capital requirement. 

• Delaware LLCs do not require a company secretary. 

• To form a Delaware LLC, the organizer must file a Certificate of Formation with the Delaware Secretary of State, stating the LLC name, entity type, purpose, duration, address, and registered agent details.   

• Delaware LLCs are required to pay an annual tax and file an annual report by June 1st each year. 

• LLCs in Delaware are formed with the Delaware Division of Corporations. 

Step 6: Obtain EIN 

• Furthermore, our experts at Tetra Consultants will proceed to obtain an Employer Identification Number (EIN) from the Internal Revenue Services. This EIN is essential for tax purposes, opening a bank account, and fulfilling other business needs. Securing an EIN ensures your Delaware company complies with federal tax regulations and facilitates smooth business operations. 

Step 7: Open a bank account 

• Moving on, Tetra Consultants will move forward with the process corporate bank account opening for your business. This ensures that within four weeks of your company’s incorporation, you will have an operational bank account. This step is crucial for managing your finances, conducting transactions, and maintaining smooth business operations. 

Conclusion 

• Proceeding with Delaware company setup with Tetra Consultants is a seamless and efficient process. Our team of experts will guide you through every step, from conducting a state name check and appointing a registered agent to filing the Certificate of Incorporation and obtaining an EIN. Additionally, we will facilitate the opening of a corporate bank account, ensuring your business is fully operational within a short time frame.  

• With our comprehensive services, including name reservation and international trademark registration, Tetra Consultants ensures your Delaware company setup is compliant with all state regulations and positioned for success. Trust us to provide professional support and expertise, allowing you to focus on growing your business. 

• Contact us to know more about Delaware company setup and our team will revert back in 24 hours.