Delaware
Delaware is an easy state in which to incorporate and form LLC's and the annual cost is low. Delaware allows the officers and owners of a corporation or LLC to remain anonymous.
The Delaware law has been tested and provides predictability. Delaware keeps updating its laws to remain the leading State for incorporation. Delaware has a separate Court of Chancery to handle corporation law cases quickly and competently.
One person can incorporate in Delaware. One person can form an LLC in Delaware.
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Can one person be an officer and director?
One person can be the President, Secretary, and Treasurer and sole Director of a Delaware corporation, without disclosing the name or names in the Certificate of Incorporation. The director or directors are allowed to amend the By-Laws of the corporation. One person can be the owner and managing member of an LLC.
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Are there any minimum capital requirements?
Delaware has no minimum capital requirement to incorporate or form an LLC.
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What tax savings will I receive by incorporating in Delaware?
Delaware has no sales tax or intangible personal property tax. No Delaware income tax has to be paid and a business license is not required if the corporation does not do business in Delaware.
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What is a General C Corporation?
For tax purposes, all corporations are General C Corporations when they are formed. This tax status permits them to pay a 15% federal rate on the first $50,000 of taxable income each year. An LLC can elect the C Corporation tax status. They can deduct health insurance, medical and dental expenses and disability insurance premiums for employees who may also be stockholders.
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What is the difference between a Corporation and a Limited Liability Company (LLC)?
A LLC offers limited liability to its owners, but is taxed as a partnership or sole proprietorship which passes all the income and losses through to its owners unless it elects to be taxed as a corporation. The LLC has an advantage over a C Corporation which makes an S Corporation tax election because the S Corporation can only have 75 stockholders and the stockholders cannot be corporations or non-U.S. citizens.
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How does a Delaware Corporation or LLC limit my liability?
The stockholders of a Delaware Corporation and the owners of units in a Delaware LLC are not personally liable to the creditors of a Delaware Corporation or LLC.
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Do I have to maintain an office or bank account in Delaware?
No office or bank account has to be maintained in Delaware.
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Can my Delaware Corporation or LLC do business in other states?
Delaware Corporations and LLCs can qualify to do business in all 50 states and foreign countries.
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Does a Corporation or LLC need a Taxpayer Identification Number (EIN)?
We provide Form SS-4 to apply for EIN. The IRS telephone number to call for EIN is 1-800-829-4933 in the US, and 215-516-6999 outside the US. For an additional fee we can assist you to complete and file the Form SS-4.
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Can a Delaware Non-Stock/Non-Profit Corporation qualify as a tax-exempt charitable, religious, educational and scientific organization?
We can obtain the certificate of Incorporation required by the Internal Revenue Service for 501(c)(3) organizations.
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The Delaware law has been tested and provides predictability. Delaware keeps updating its laws to remain the leading State for incorporation. Delaware has a separate Court of Chancery to handle corporation law cases quickly and competently.
- Can one person incorporate or form LLC?
- Can one person be an officer and director?
- Are there any minimum capital requirements?
- What tax savings will I receive?
- What is a General C Corporation?
- What is the difference between Corporations and Limited Liability Companies (LLC)?
- How does a Delaware Corporation or LLC limit my liability?
- Do I have to maintain an office or bank account in Delaware?
- Can my Delaware Corporation or LLC do business in other states?
- Does a Corporation or LLC need a Taxpayer Identification Number (EIN)?
- What about tax-exempt charitable, religious, educational and scientific organizations?
One person can incorporate in Delaware. One person can form an LLC in Delaware.
Return to top
Can one person be an officer and director?
One person can be the President, Secretary, and Treasurer and sole Director of a Delaware corporation, without disclosing the name or names in the Certificate of Incorporation. The director or directors are allowed to amend the By-Laws of the corporation. One person can be the owner and managing member of an LLC.
Return to top
Are there any minimum capital requirements?
Delaware has no minimum capital requirement to incorporate or form an LLC.
Return to top
What tax savings will I receive by incorporating in Delaware?
Delaware has no sales tax or intangible personal property tax. No Delaware income tax has to be paid and a business license is not required if the corporation does not do business in Delaware.
Return to top
What is a General C Corporation?
For tax purposes, all corporations are General C Corporations when they are formed. This tax status permits them to pay a 15% federal rate on the first $50,000 of taxable income each year. An LLC can elect the C Corporation tax status. They can deduct health insurance, medical and dental expenses and disability insurance premiums for employees who may also be stockholders.
Return to top
What is the difference between a Corporation and a Limited Liability Company (LLC)?
A LLC offers limited liability to its owners, but is taxed as a partnership or sole proprietorship which passes all the income and losses through to its owners unless it elects to be taxed as a corporation. The LLC has an advantage over a C Corporation which makes an S Corporation tax election because the S Corporation can only have 75 stockholders and the stockholders cannot be corporations or non-U.S. citizens.
Return to top
How does a Delaware Corporation or LLC limit my liability?
The stockholders of a Delaware Corporation and the owners of units in a Delaware LLC are not personally liable to the creditors of a Delaware Corporation or LLC.
Return to top
Do I have to maintain an office or bank account in Delaware?
No office or bank account has to be maintained in Delaware.
Return to top
Can my Delaware Corporation or LLC do business in other states?
Delaware Corporations and LLCs can qualify to do business in all 50 states and foreign countries.
Return to top
Does a Corporation or LLC need a Taxpayer Identification Number (EIN)?
We provide Form SS-4 to apply for EIN. The IRS telephone number to call for EIN is 1-800-829-4933 in the US, and 215-516-6999 outside the US. For an additional fee we can assist you to complete and file the Form SS-4.
Return to top
Can a Delaware Non-Stock/Non-Profit Corporation qualify as a tax-exempt charitable, religious, educational and scientific organization?
We can obtain the certificate of Incorporation required by the Internal Revenue Service for 501(c)(3) organizations.
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