If you are an entrepreneur looking to start a business in the United States, then incorporating your business in Delaware may make sense for you. Delaware is a popular state for business incorporation because it provides numerous benefits such as limited liability protection, lower taxes, and a business-friendly legal system. When you incorporate your business in Delaware, the first step is filing a Delaware Certificate of Incorporation. In this article, we will guide you through the process of filing a Delaware Certificate of Incorporation.
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What is a Delaware Certificate of Incorporation?
A Delaware Certificate of Incorporation is a legal document that formally creates your company as a legal entity in the state of Delaware. When you file this document, you become a corporation that is separate from its owners, meaning that shareholders are not personally responsible for the company's debts and obligations.
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Step-by-Step Guide to Filing a Delaware Certificate of Incorporation
To file a Delaware Certificate of Incorporation, you must follow the steps outlined below:
Step 1: Name Search
The first step is to come up with a unique name for your corporation. Your company's name must also be available for use in the state of Delaware. A name availability search can be conducted on the Delaware Secretary of State's website or via a Delaware registered agent. Once you have found a unique name for your corporation, you can proceed to the next step.
Step 2: Registered Agent
Delaware requires all corporations to have a registered agent who resides in the state. This agent acts as a liaison between your corporation and the state and accepts legal documents on your company's behalf. You can hire any person to act as a registered agent including yourself or signing up for an online registered agent service.
Step 3: Filing Fee
There is a filing fee of $89 for filing the Delaware Certificate of Incorporation. You can pay this fee either online or by mail.
Step 4: Fill out the Form
After the name search and selecting a registered agent, the next step is to fill out the Delaware Certificate of Incorporation Form. You will need to provide basic information about your corporation such as the company's name, registered agent's name and address, the company's purpose, and the number of shares that have been authorized.
###Step 5: File the Delaware Certificate of Incorporation
Once you have filled out the Delaware Certificate of Incorporation form accurately, the next step is to file it with the Delaware Secretary of State’s office. You can file the Certificate of Incorporation either online or by mail.
###Step 6: Certificate of Incorporation Approval
The processing time for the Delaware Certificate of Incorporation is usually short. Once the Secretary of State approves it, you will receive a copy of the Certificate of Incorporation either through mail or email depending upon your mode of filing and address
Key Considerations When Filing a Delaware Certificate of Incorporation
Here are the crucial factors you should consider when filing Delaware Certificate of Incorporation:
Understand Your Corporation's Purpose
You must provide a clear description of your corporation's purpose and function on the form. Be precise and concise about what your company does.
Choose a Quality Registered Agent
A registered agent is highly important to your business in Delaware because you need someone who is responsible, trustworthy and reliable. The registered agent is required to accept legal notifications and official documentation from the state.
Consulting With an Attorney
Finally, if you encounter any difficulties, or just want to ensure that everything is done right when incorporating, consulting with a business lawyer can be a great idea. They can offer legal advice on the process, including helping you analyze the different types of entities available, explain various state and local requirements, review legal contracts, among other such matters.
Conclusion
Filing a Delaware Certificate of Incorporation is a natural and straightforward process to starting a business in Delaware. However, businesses should consult with an experienced attorney for advice. Remember that once you submit your Delaware Certificate of Incorporation, your company is legally established in Delaware - congratulations!
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