How to Register a Company in the USA With Icon Offices
Incorporate Your LLC in Delaware, USA – Starting at $0 + State Fees! unlock Delaware's business-friendly benefits. Act now!
The United States is one of the most influential countries in the world contributing the world’s largest achievements in innovations and business-related attributes. The USA has a highly diversified economy with key sectors being healthcare, technology, manufacturing, finance, energy, and agriculture.
While the USA has many states, Delaware is a perfect choice for entrepreneurs to set up their businesses. Delaware State has a business-friendly legal framework offering flexibility to businesses making it easier for businesses to operate seamlessly.
Incorporating in Delaware gives your business global recognition, making it beneficial for entrepreneurs who want to expand their business internationally. For foreigners who want to tap into the Delaware market, navigating the legal requirements can be challenging, however, with a registered agent, you can efficiently register a company within one day and operate it seamlessly.
What is a registered agent? Here is a quick guide on what a registered agent means and how you can utilise their services by registering your company in Delaware, USA.
What is a registered agent in Delaware?
A registered agent can be a business or an individual who acts as a point of contact between the company and the state of Delaware. Just like in other states, the registered agent receives legal documents and government correspondence on behalf of the business and forwards them to the company / company directors for acknowledgment for a purpose of staying compliant with legal requirements.
The purpose of a registered agent is to make sure businesses comply with legal requirements by not missing important legal or state communications. This will make businesses avoid fines, penalties, or dissolution of the business. They also serve as evidence to the state that the business exists. In Delaware, a business owner must have a registered agent before incorporating a company.
Registered agents’ responsibilities include;
- · Accepting legal documents, such as lawsuits, subpoenas, compliance notices, and tax filings documents
- · Forwarding documents to the correct person or department within the company
- · Keeping records of what they receive and forward
- · Providing information for billing and tax obligations
To qualify to be a registered agent in Delaware you ought to have a physical address which is not a P.O. box and be accessible during standard business hours to receive documents.
What types of company structures can you form in Delaware?
There are different types of company structures entrepreneurs can form in the state of Delaware. The most common business structures are limited liability companies (LLCs) and corporations.
LLCs: The company structure offers limited liability to its members, meaning that, in case of debts, they will not be held liable.
There are two categories of corporations that are;
S corporation: Shareholders are the sole owners of this company and are taxed on their income.
C corporation: The company is taxed as a separate entity, and shareholders are not taxed on the corporation's profit.
The other structures include:
General partnership: This business structure has at least two partners who work together to generate profits.
Close corporation: This structure is intended for businesses with a maximum of 30 shareholders. Stock transfer is more limited in close corporations than in a general corporation.
General corporation: This is the most common corporate structure, where stockholders own a separate legal entity.
Delaware Series LLC: This structure provides separate liability for each asset within each series.
Icon Offices help businesses in incorporating an LLC company structure in Delaware which is more flexible and can be operated by members.
Why incorporate an LLC in Delaware?
1. Liability protection
LLCs offer limited protection to its members, meaning, members will not be liable for the company’s debts and their assets will not be affected in case of liquidation. LLCs are distinct legal entities that can acquire assets such as real estate, equipment, and more. These assets can be sold to settle debts in the event of default or insolvency.
Flexible management structure
LLCs offer enhanced flexibility concerning the management and ownership structure of the organisation. For instance, the members of an LLC can either decide to manage the firm or appoint managers to do so, with various management structures allowing for different types of management suitable for different kinds of businesses.
Tax benefits
Delaware does not impose any state income tax on LLCs established within its jurisdiction, provided that these entities do not engage in business activities within the state and do not derive income from Delaware sources. In addition, there is no sales tax, plus there is no estate tax and no inheritance tax in Delaware, which may be an advantage to some business owners.
National recognition
A Delaware LLC is recognised and respected in all states and often preferred by investors and partners due to Delaware's established business reputation.
Privacy
LLCs offer privacy since they do not disclose the names of their members or managers in formation documents. LLC owners are not required to disclose any information about the LLC to the state of Delaware. LLCs filed through a registered agent have the highest level of confidentiality. The registered agent is responsible for receiving legal correspondence and other documents on behalf of the LLC.
Flexibility
Delaware law allows LLCs to create custom governance and profit-sharing arrangements.
Special court system
Delaware has a special court system called “The Delaware Court of Chancery”, where Delaware-based companies can get legal disputes addressed quickly.
How to register an LLC in Delaware with Icon Offices
To register an LLC in Delaware with our registered agent services, you will need to have the following documents;
- · A unique business name
- · Details of the LLC members
- · ID documents for all LLC members.
With our registered agent services, you can use our address to incorporate your company and receive legal documents at our address as well.
Make sure the name you choose for your company is not the same as or similar to an existing business in Delaware and must end with LLC or L.L.C.
Filing the Certificate of Formation
Certificate of Formation known as the Articles of Organisation in other states, contains the information required by law to form an LLC. You will have to complete and file the Certificate of Formation with the Delaware Division of Corporation. In the certificate, you will need to include the name of your LLC, the registered agent's name and address, and the purpose of your LLC. You can file the document online or through mail. As part of our Delaware LLC incorporation service we will take care of all paperwork for you.
Create an operating agreement
This document outlines the LLC management structure, their roles, and operational procedures. The operating agreement is not required by law; however, it helps in the company’s operation system. You can purchase our service to acquire this document while making your order.
Register your business
Once you have filed the Certificate of Formation you can register your LLC with the Delaware Secretary of State. Icon Offices have various packages that can suit every type of business. With our simple online platform, you can easily enter the managers’ and company’s details to create an account and register your business.
We handle all necessary paperwork and submit your application for LLC formation on your behalf to the Delaware Division of Corporations.
Obtain an Employer Identification Number (EIN)
If you intend to have employees or your LLC has many members, you will need to register for EIN from the Internal Revenue Service (IRS). Along with Icon Offices incorporation service, you can also purchase our EIN application service as an additional service and we will apply for an EIN for your company on your behalf.
Open a business bank account
Using your EIN and Certificate of Formation, you can open a business bank account in the name of your company. A business bank account helps in keeping your personal and business finances separate. It also gives your business credibility and a professional look.
Add necessary licenses or permits
Depending on the nature of your business and location, you may need state, local, or federal licenses and permits. Research the regulatory requirements pertinent to your specific business type to guarantee adherence to compliance standards.
Stay compliant
All LLCs must pay an Annual Franchise Tax. LLCs formed in Delaware pay a flat rate Annual Franchise Tax of $300 and it is due on June 1st of each year.
LLCs established in Delaware are not obligated to submit an annual report; however, it is crucial to ensure that your records are current and that you remain in compliance with applicable regulations.
Keep good records, hold regular meetings (if applicable), and stay compliant with state and federal regulations to keep your LLC in good standing.
Registering an LLC in Delaware is a big step towards globalising your business. Businesses can leverage business-friendly legislation and special court systems for businesses.
By following these steps, you can easily and successfully form an LLC in Delaware while taking advantage of Icon Offices’s services. If you are unsure of any part of the process, you can contact us at info@iconoffices.co.uk.