Why You Should Set Up A Company In Delaware

Are you considering setting up a corporate home base for your business? Learn why Delaware is the ideal destination, and how to get started.

“In this world, nothing can be said to be certain except death and taxes”, Benjamin Franklin once said. 

Regarding Benjamin Franklin’s quote, Delaware is one of the best places to open a company. 

For people who decide to be their own managers and to transform their lives by starting a business, before opening any company, you need to think about where the best place in the world is to open it, taking into account the taxes that you need to pay. 

Referring to taxes, Delaware will make any entrepreneur content in finding the best options, no matter the finances you have for opening your own business. 

Why You Should Set Up A Company In Delaware

Delaware is definitely one of the best places to open a company. 

According to one of the best business magazines in the world, 68% of the most powerful companies in the world and 93% of all US based initial public offerings are registered in Delaware. 

Specialists in the financial field presented during the presentation some facts and benefits for opening a company in Delaware. 

First, you need to know that Delaware is nowadays a sort of “business Mecca” for all sorts of fields. Corporations like Amazon, American Express, Walmart, Disney, and Tesla were first incorporated in Delaware.

Secondly, a company here has significant tax advantages – businesses have fast incorporation and tax benefits, and there is no need for shareholders to reside in Delaware. The minimum share capital for an LLC in Delaware is 1 USD. 

Another advantage is the fact that Delaware does not have personal property taxes or inheritance taxes. Also, in comparison with other states, in Delaware, business people will pay a small franchise tax to register. Furthermore, there is no income tax if the firm does not have activities in the country. 

Which are the conditions for opening a company in Delaware? 

First, companies need an LLC with the Division of Corporations. This institution is issuing the certificate of incorporation. It is recommended that you have at least two shareholders – in this case, the company in Delaware needs to have a registered agent in the person of the partner of the business or company itself. 

If it’s the first time the company has opened in Delaware, then using the services of local or  international specialists can help. There are companies that can take care of all the documents when opening a company; they do the application for the needed business license, as well as the registration. 

How do you open a bank account for your company?

The future owner needs the documents of the company – memorandum of association, the incorporation certificate, and the certificate of good standing. Some banks in Delaware might also request other documents that need to be certified or legalized. 

The owner needs to obtain a Foreign Qualification for operating the activities in Delaware. The name for this document is “Certificate of Authority,” and it is issued after the owner demonstrates that the business has a physical address. Also, the administrator needs to apply for an EIN. This document – Employer Identification Number is obligatory. 

There are some steps that the administrator needs to follow: 

  • Submitting the documents 

The Articles of Association are the company’s main documents that need to be submitted to the Division of Corporations in Delaware. Information about the owners and activities is included. 

  • Apply for licenses and permits 

Aligning with the rules

Companies in Delaware can activate if business licenses are obtained. The Delaware Division of Revenue issues business licenses for companies registered in this state. 

  • Opening a bank account and bank regulations

             The Articles of Association, the Certificate of Incorporation and the Certificate of Good Standing are among the documents needed for opening a company in Delaware. 

  • Register for taxation in Delaware 

Obtaining the EIN

EIN is the Employer Identification Number, needed for tax purposes in Delaware. This shows that the company is a taxpayer. Support in obtaining the EIN can be offered by our consultants in Delaware. 

  • Hire staff for Delaware business

Business Recommendations

Foreign investors can choose the qualified workforce in Delaware and hire staff for their company. The company formation agents that you find in Delaware, can provide in-depth support in this matter. 

All this information will make your process of opening a company in Delaware easier, with specialists in the field to guide you. 

That is why the USA continues to attract many foreign investors. The optimal business conditions, also the support of the good infrastructure, a framework transparent and legal, and the workforce that very skilled among others. 

The statistics about the US economy are changing year by year. Till 2020, the United States had more than USD 10.800 in total FDIs. The country ranked 6th out of 190 global economies in terms of business climate and other conditions. Texas is the state that received the most foreign investment in 2020, over USD 18 billion.

Last but not least, the USA has the biggest and most appreciated economy in the world, as well as an influential culture and history. The gross domestic product can surpass $18 trillion (as registered for 2016).

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