Delaware has become the go-to destination for startups. If you’re planning to incorporate a startup in Delaware, its founder-friendly legal system, tax flexibility, and strong protections make it a top choice for US small businesses.
This guide breaks down the steps to incorporate in Delaware and explains how reliable accounting services in US can help you stay compliant from day one.
Before diving into paperwork, it helps to know why Delaware is so popular for new businesses:
Business-Friendly Laws: Delaware has a well-established corporate legal system.
Privacy: Shareholders and directors don’t need to be listed in public filings.
Flexible Structure: You don’t need to live or operate in Delaware to incorporate there.
Investor Appeal: Venture capitalists often prefer Delaware C-corps.
Your startup’s legal structure determines taxes, liability, and paperwork. The most common options are:
C-Corporation (C-Corp): Best if you plan to raise venture capital.
Limited Liability Company (LLC): Easier to manage, with fewer formalities.
Tip: Most Delaware startups choose a C-Corp for scalability and investment opportunities.
Make sure your business name is:
Unique and not already in use in Delaware
Followed by the appropriate suffix (e.g., Inc., Corp., LLC)
Delaware law requires every corporation to have a registered agent with a physical address in the state. This person or company receives legal and tax documents on your behalf.
You can:
Hire a professional registered agent service
Use your own agent if you have a physical Delaware address
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Here’s what you’ll need to file:
Company name
Registered agent info
Number of authorized shares
Incorporator’s name and address
Submit your Certificate of Incorporation to the Delaware Division of Corporations, either online or by mail. Expect a state filing fee of around $89 for a minimum stock issue.
After incorporation, apply for an EIN from the IRS. You’ll need this to:
Open a US business bank account
File federal taxes
Hire employees
Even if you incorporate in Delaware, you’ll likely need to register as a foreign entity in your home state if you:
Have employees
Maintain a physical office
Sell products or services locally
Each state has its own requirements and fees.
To separate personal and business finances:
Bring your EIN, Certificate of Incorporation, and company bylaws
Choose a bank that supports small business accounts
Delaware corporations must meet several annual obligations:
Franchise Tax: Due by March 1st each year
Annual Report: Also due March 1st
Registered Agent Maintenance: Keep your agent info up to date
Missing these can result in penalties or loss of good standing.
Starting strong is one thing—staying compliant is another. Here’s how accounting services can help:
Track Delaware Franchise Taxes and federal filings
Handle payroll and 1099 reporting
Reconcile business transactions
Prepare financial statements and assist with audits
Whether you’re just starting out or scaling quickly, having professionals handle the financial side lets you focus on building your business.
Incorporating a startup in Delaware is a smart move for many US small businesses, especially if you’re looking to attract investors or take advantage of business-friendly laws. From selecting a structure to filing the right documents and staying compliant, each step plays a key role in setting your startup up for success.
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