How to Become a C Corp in Delaware?

Delaware’s business-friendly legislation make it a popular state for business incorporation. In Delaware, C corporations, often known as C corps, are a frequent type of commercial entity. C corporations have a number of advantages, including the capacity to acquire cash through the selling of shares and limited responsibility for stockholders. Here’s a guide on how to register as a Delaware C company.

First, pick a name for your company and make sure it may be used. On its website, the Delaware Division of Corporations offers a name availability search function. You should submit a Certificate of Incorporation to the Delaware Division of Corporations once you have decided on a name. The name, function, and number of authorized shares of your corporation are all listed in this document. There is a $89 filing charge. The next step is to designate a registered agent who will accept legal and tax paperwork on your corporation’s behalf. The registered agent must be readily accessible during regular business hours and have a physical address in Delaware. An individual or a registered agent service might be chosen.

You must draft corporate bylaws after submitting the Certificate of Incorporation and selecting a registered agent. The internal regulations that control the corporation are its bylaws. They should outline the organization’s management structure, meeting procedures, and decision-making processes. Finally, get any business licenses and permits that are required. There is no universal business license required in Delaware, although some companies can need particular licenses or permits to operate there. For more information, contact your local government and the Delaware Division of Revenue.

The main distinction between an LLC and a C corporation is that while LLCs provide owners with limited liability protection, they are taxed differently from C companies. Profits and losses from LLCs are passed through to the owners’ individual tax returns since they are taxed as pass-through businesses. C companies, on the other hand, are susceptible to double taxation and are taxed separately from other entities. However, C corporations are able to raise cash and issue shares more readily than LLCs.

To summarize, in order to form a C corp in Delaware, you must file a Certificate of Incorporation, designate a registered agent, draft bylaws, and acquire all required licenses and permissions. Delaware’s business-friendly legislation and relatively simple procedure make it a desirable alternative for many companies.