Despite being the second-smallest state in the union, Delaware is a sought-after location for enterprises from all over the world. In fact, Delaware is where over 50% of all publicly listed U.S. corporations and over 60% of Fortune 500 companies are established. What, then, makes this state so unique?
The state’s business-friendly laws and tax system are one factor. The Court of Chancery, a special corporate law court, is a separate legal system in Delaware. Because of this court’s well-known efficiency and predictability, businesses can operate with a level of confidence that isn’t often present in other states. Delaware is a desirable alternative for companies wishing to save money because it also has no sales tax and a low corporate income tax rate.
Delaware’s uniqueness is also a result of how simple it is to incorporate. The state provides a simplified procedure for forming businesses, and many services are offered online. The Delaware Division of Corporations website allows businesses to receive their corporation number, often known as the entity number. In the state of Delaware, a business entity is identified by this number.
Although the corporation number is significant, an Employer Identification Number (EIN) is a different number. The IRS issues an EIN, a special nine-digit number, to identify a firm for tax purposes. Direct access to an EIN is available for businesses on the IRS website.
The Delaware Secretary of State assigns the entity number, which is sometimes referred to as a “sos number” for short. It differs from the Articles of Organization, a legal document that describes the structure and objectives of a Delaware Limited Liability Company (LLC). To create an LLC, the Articles of Organization must be submitted to the Delaware Division of Corporations.
In conclusion, Delaware is unique due to its business-friendly legislation, tax system, and simple incorporation procedure. It is simple for businesses to receive their corporate number, which, despite occasionally being called a sos number, is distinct from an EIN or the Articles of Organization. Delaware is unquestionably one of the top states to incorporate in the US.
The steps listed below can be used to incorporate online in Delaware: 1. Select a company name and check the Delaware Division of Corporations website to see if it is available. 2. Select a registered agent, who may be a specific person or a registered agent firm. 3. Submit your Certificate of Incorporation online, along with the necessary filing fee, to the Delaware Division of Corporations. 4. Obtain any licenses and permits your firm may require. 5. Establish your business’s bylaws and elect your directors and officials. 6. Ask the IRS for an Employer Identification Number (EIN). 7. Obtain the appropriate business permits and register for any state taxes that are necessary.
It is significant to remember that, depending on the particulars of your firm, online incorporation in Delaware can necessitate additional stages or considerations. To make sure you are adhering to all relevant laws and procedures, it is advised that you speak with a lawyer or other professional.
The corporation’s incorporator or an authorized representative of the corporation must sign the certificate of incorporation in Delaware.