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Back to State Information |
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| Incorporate your business in Delaware;
Our Incorporation information is to help you with the small
business startup process. The Delaware Incorporation info can
help answer questions like "How do I form an LLC in Delaware?"
or "What type of Incorporation entity should I be? An Delaware
S-Corporation or an Delaware C-Corporation?" or "What are the
requirements for an Delaware Corporation?" It's easy to set up
an Delaware Corporation with our Incorporation Software. It has
this and other Incorporation info right on the software. So
once you know, your ready to go! |
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| Corporate Name Endings
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| The corporate name ending must contain
the word "Association," "Company," Corporation,"
"Club," "Foundation," "Fund,"
"Incorporated," "Institute," "Society,"
"Union," "Syndicate," "Limited,"
or the abbreviation "Co.," "Corp.," "Inc.,"
"Ltd.," or words or abbreviations of like import in
other languages. The name must be distinguishable from the names
of other corporations organized, reserved or registered as a
foreign corporation under the laws of Delaware. Use of word
"Trust" is prohibited except for corporations under
supervision of the Bank Commissioner. |
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| Corporation Requirements |
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- Director Information
- Minimum Number - One or more.
- Residence Requirements - No provision.
- Age Requirements - None.
- Directors are not required to be listed in the articles
of incorporation.
- Officer Information
- Officers are not required to be listed in the articles
of incorporation.
- Stock Information
- An increase in shares or par value does affect initial
filing fees.
- Corporate Records
- A stock ledger and basic corporate records must be
kept at the principal office of the corporation.
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| Tax and Fees |
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- Annual Statements
- The annual statements for corporations are sent out
to the registered agent in December and January. The
payment is due by March 1st. The fee is $50, consisting
of a $30 franchise tax and a $20 annual statement fee.
The franchise tax is based on the number of shares and
the par value, and if the number of shares is above
3000 the annual fee may increase.
The annual statements for LLCs are sent out to the registered
agent in March and April. The payment is due June 1st.
The fee is $100.
- Franchise Tax Rate
- Corporations that are not located in Delaware do
not pay an income tax. A schedule of rates based on
the number of authorized shares is as follows: Up to
and including 3,000 $30 Over 3,000 up to and including
5,000 shares $50 Over 5,000 up to and including 10,000
shares $90 Over 10,000 shares $90 plus $50 for each
10,000 shares or part thereof over 10,000 If your number
of shares is above 3,000, the alternative method may
provide a lower tax. The formula for the alternative
method is below: Divide total gross assets by total
issued shares carrying to six decimal places (this is
your "assumed par"). If the assumed par is the same
or greater than the stated par value, multiply the assumed
par by the total authorized shares (this is your "assumed
par value capital"). If assumed par value capital is
greater than 1,000,000, round up to the next million
and multiply $200 per million (e.g. 10,002,000 = 11
x $200). If less than 1,000,000 divide by 1,000,000
and multiply by $200. Should your assumed par be less
than the stated par value, multiply the authorized stock
by its stated par value and continue with calculation.
Each no-par share must be considered as having a value
of $1. The minimum tax is $30 with a maximum tax of
$150,000.
- Income Tax Rate
- The income tax rate for corporations actually located
in Delaware is: 8.7%.
- S Corporation
- S Corporation status is recognized by the State of
Delaware. A separate state election from the federal
election is not required.
- License Requirements
- Delaware requires most businesses to obtain a license
and pay a fee if operating in the state. Please check
with the state to make sure your business is complying
with the license requirements for your particular profession.
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For more information on taxes, visit: http://www.state.de.us/revenue/default.shtml
For additional or updated information, visit: http://www.state.de.us/corp
Mailing Address:
Secretary of State
Division of Corporations
P.O. Box 898
Dover, DE 19903
Tel: (302) 739-3073
Fax: (302) 739-3812
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| Would you like to incorporate
in Delaware? Click
here to purchase the Delaware Incorporation Kit. |
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