October 8, 2020, Comment off
Is it easy to establish an LLC in Delaware?
Starting an LLC in Delaware is not only highly beneficial compared to some other states, but it is also super easy. Before you start your business you should decide on the following items.
Which type of entity you want to establish.
There are common types, which are LLC and INC.
If you plan to start an LLC in Delaware, it is okay and great. You do not need to think about how many authorized shares you need to have for your company or their par values. But if you wish to establish a Corporation (INC), you better think about how many authorized shares you need to issue for your Corporation to best suit your business needs. This seems like a bit of a hidden detail on forming a corporation in the US regardless of which state you choose.
The name of the Company
Think about it! You will be the owner of an international company. It should shine on your documents and website. It should be memorable enough for your clients. So an entity name could seem like a small concern but it is, in fact, the beginning of a long road ahead.
Avoid using words like university, hospital, bank, or other institutions that express something serious. Avoid using symbols, or non-English letters which might cause problems for your IRS submissions.
We also recommend using short, common words. Of course, common words are highly preferred, so you will need to make sure the entity name you chose does not already exist in the state records. If a business with the same name exists in that state, you will be asked to provide a Letter of Consent obtained from the owner of that company.
Some non-US residents try to use words in their local language for their company names. The state will usually ask for the meaning of the said words if it is not in English.
You can always contact us if you require assistance in choosing your entity name.
And you are good to go
If you decide on the things mentioned above, you are good to start your business. Company registration or an LLC in Delaware will usually take 7-10 business days on regular processing. Expedited processing time is also available for additional fees if you are in a rush. You will be asked to fill out a cover memo and a Certificate of Formation in the format supported by the state. This may seem complicated, but we are here to help you form your Delaware entity!