The Delaware Company

How do you obtain competitive pricing information? We monitor the package content and pricing information of our competitors several times each day. When changes are identified, we update the provider's package descriptions and prices on our website.

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Why is a competitor I'm considering not listed on your site? We monitor leading, nationwide online incorporation service providers. Companies that don't meet our criteria, aren't included on our site. There are (literally) hundreds of online incorporation service providers serving Delaware. Most lack a significant history, appropriate experience, or a national presence. We strive to provide the best overall value to customers by comparing the packages of experienced, nationwide leaders. Based on their offerings, The Delaware Company then provides enhanced versions of their packages that provide significant savings.

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What do you mean by "our enhanced version of their package"? Although it's not always possible to provide exactly what a competitor does, we can typically provide you with a product or service of equal or greater value.

When you select one of our enhanced packages, our team prepares and files formation documents as specified in the package. We also provide alternative, but similar, package items. For example, corporate kits, LLC kits, seals, and document templates are popular package items, because they make complying with company requirements easier. Our versions of these items aren't always identical to the items provided by competitors, but they serve the same purpose.

We note instances where we upgrade components of a competitor's package and instances when a competitor's package includes items we do not offer.

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Why are package details for certain competitors not displayed? Certain competitors do not allow any content of their website, even though it is publicly accessible, to be reproduced. Therefore, we cannot display the exact contents of their packages in our Quote and Compare tool. In these cases, The Delaware Company still offers enhanced versions of the competitor's package(s) at an optimized price.

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Which entity is best for me? Review the following to help make your decision:

• Delaware corporation is usually appropriate if:

• There is any chance the owners might want to become an S corporation.
• Several individuals or entities will be owners.
• Owners plan to be profitable in the first several years of operation and plan to reinvest profits for growth.
• Owners live in a state with an income tax.

• Delaware S corporation is usually appropriate if:

• The company will experience start-up losses during the initial years of operation and the owner has ordinary income against which these losses can be deducted.
• The company is a single-owner entity.
• The owner wants to extract most of the profits instead of reinvesting for growth. The company does not expect to issue multiple classes of stock or have more than 100 shareholders.
• Shareholders are not non-resident aliens.

• Delaware LLC (limited liability company) is usually appropriate if:

• The business is a partnership, or several different entities own the business.
• The company is used primarily to hold real estate or other income-generating assets such as stocks.
• The company has foreign investors.

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What are state fees? State fees are the filing fees imposed by the State of Delaware for forming an LLC or corporation in Delaware. The state's fee for forming an LLC is $90. The fee for forming a corporation is $89.

The Delaware Company acts as an intermediary by collecting the state fees owed for the formation of your business and submitting them to Delaware on your behalf during the formation process.

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How much stock do I need? As the owner of a Delaware corporation, you determine the appropriate number of shares for your company. The numbers of shares you select will influence your cost of maintenance. Unless specified in a package description, The Delaware Company forms corporations with 1,500 shares at a zero par value. This amount qualifies you for the minimum annual state fees of $60 per year. If you wish to increase the number of shares or par value later in the corporation's life, you can do so by filing an amendment with the state.

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Where do I get stock/membership certificates? The Delaware Company's LLC or corporate kit contains 20 custom numbered membership or stock certificates for your company. Packages that include a kit include certificates.

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Do I need a federal tax ID (EIN) number? The IRS requires LLCs or corporations that intend on having employees or opening a bank account to obtain an EIN. To obtain an EIN, you must provide a valid US Social Security Number (SSN) or individual taxpayer identification number (ITIN).

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How do I open my company bank account? If you plan to open a bank account yourself, it is typically best to contact the bank(s) with which you would consider opening an account to ask them what type of information they require. Most banks require a certified copy of the certificate of formation (or incorporation) which is available for purchase as an add-on item from The Delaware Company. Some banks will require a certificate of good standing and a tax ID (EIN) number, both of which can be purchased as add-on items when ordering your company or at a later date. Most non-US clients who wish to open a bank account in their home country will require a certificate of formation or certificate of incorporation with apostille, which is also available as an add-on item. You can also take advantage of the bank account introduction service offered by The Delaware Company as an add-on to its packages to have a business checking account opened on behalf of your company.

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When do I pay franchise taxes? The franchise tax imposed by the State of Delaware is a tax LLCs and corporations are charged merely for existing in that state. For LLCs, the tax is due to the State of Delaware by June 1 the calendar year after your LLC is formed and annually thereafter. For corporations, the franchise tax is due to the State of Delaware by March 1 the calendar year following your company's formation and annually thereafter. You will receive notification and instructions for paying your franchise taxes from your registered agent service provider prior to these dates.

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Do I need to be registered to "transact business" in my home state? Your Delaware company is a domestic company in the State of Delaware. It is a foreign company in every other state or country. If you plan to staff offices in a state other than Delaware, with employees who conduct business directly with the public, it may be wise to register in this state. Registering in additional states is generally not necessary if you are a consultant; a one- or two-person or home-based business; or sell through independent distributors, manufacturer's representatives, wholesalers, retailers, or through mail order or the Internet. More information on what constitutes "transacting business" can usually be found at the Secretary of State's office in each state. If you decide to register with your home state, be advised that most states will require a certificate of good standing from the State of Delaware. A certificate of good standing can be purchased as an add-on item with your formation package, or separately later, if you find that you need it.

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Do I need mail forwarding? Business owners who are not physically located in Delaware often are in need of an address in the State of Delaware to list as their business address. With the mail forwarding service, you are provided a physical street address (not a P.O. Box) in Wilmington, Delaware. The mail received for your company is then forwarded weekly to the address you designate. Mail forwarding is available to customers located in and outside of the United States. The United States Postal Service (USPS) requires that all mail forwarding customers complete USPS Form 1583 and provide two valid forms of identification, one of which must include a photograph. The Delaware Company partners with Easy Corp Ltd. for fulfillment of the mail forwarding service. When you add mail forwarding to your formation order and after payment has been applied to your order, you will receive an email with instructions for initiating your mail forwarding service with Easy Corp Ltd.

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What documents are required for the bank account introduction service? Because of the strict requirements imposed by the United States Patriot Act, you will be required to provide a number of documents before our partner, Easy Corp Ltd., can begin the process of opening a business checking account for you.
Requirements include:

• A clear copy of a valid passport
• A clear copy of a second form of identification (such as driver’s license or national ID)
• A clear copy of a recent utility bill (in English) displaying your name and current local address
• A bank reference letter (in English) from your local personal banker stating how long you have held a bank account with that bank and confirmation that your account is in good standing
• A clear copy of the letter from the Internal Revenue Service (IRS) confirming your Federal Tax Identification Number (EIN) – Tax ID (EIN) number obtainment is included in The Delaware Company’s Entrepreneur’s Choice package
• A clear copy of your Certificate of Incorporation or Certificate of Organization – A certified copy of the formation documents is included in The Delaware Company’s Entrepreneur’s Choice package
• If your company has been in business for more than six months, a clear copy of a Certificate of Good Standing from your state of formation will also be required – A certificate of good standing is available from The Delaware Company
• If the names of the individuals who will have access to your business checking account are not listed in the Certificate of Incorporation or Certificate of Organization, a clear copy of your company’s bylaws or operating agreement must be provided that lists these individuals
• A minimum deposit of $100

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