Registering a Delaware company; Why & Requirements

There are many reasons to register a company in US but for me it was just because it sounded cool. So I’m researching about how one can do so without visiting US personally.

This series of posts would serve as documentation for me and may as well help others who are searching for the same.

NOTE: This post details the requirements and process for a LLC (Limited Liability Company).

Why Delaware?

I’m choosing Delaware because in my research it has been the most recommended state to incorporate in. Your requirements may vary if you are already operating in any other state of US or if you want to. But if you are a non-US and want to register a company remotely then I’d highly recommend that you go with Delaware. Some of the reasons are:

• Almost 60% of Fortune 500 companies and 50% of public companies in US are incorporated in Delaware.
• You do not need to live in Delaware or maintain a physical address. Although you will need to have a registered agent there. I’ll cover the Registered Agent part next in series.
• Great for privacy: Companies’ public record does not need to list its owners and their details.
• Best business court: Delaware’s Court of Chancery is considered as best business court in US. It does not involve a jury and decisions are made by judges who are expert in business and corporate laws.
• Single person LLC can be formed where the owner will manage all the positions and hold all the shares. So no need to appoint directors, secretaries, etc.
• No bank account required. Delaware does not require you to maintain a bank account with minimum balance like many other states do.
• No state tax: If your company is not operating in Delaware then you don’t have to pay any state income tax.
• Registration can be done online.

Requirements:

Here the things needed to register the company:

• Company name must be available. For example if you want to name your company “Acme LLC” then you should make sure there is no company registered with this name already. Here’s the search tool you can use.
• Registered Agent. You should nominate a person or a company, resident of Delaware to receive official mail (if needed) on your company’s behalf. If you want to physically operate in Delaware then you can be your own registered agent.
• Certificate of incorporation. This is available in form a PDF document which you can download and send via mail or fax to Delaware office.
• Cover memo. A cover sheet or a memo can be downloaded from here. It should be sent along with certificate. You can mention the return address on this cover.
• $90 Fee. You’ll have to pay the registration fee of $90. You can select the payment method on your cover memo.

And thats it. You should receive the fillings back in a week or two.

I’ll be writing more on this topic so if you want to stay updated, don’t forget to follow.