Frequently Asked Questions
Incorporation/Company Formation FAQs
If I incorporate in Delaware will I need a bank account or office address there?
No. Your corporation or LLC does not need to maintain a bank account, or office in Delaware, as long as your corporation or LLC is represented by a registered agent. CorpCo can act as your Delaware registered agent for $119.00 per year.
When is my registered agent fee due each year?
Delaware registered agent service is billed in January each year, when the Delaware annual franchise tax reports are sent out. Non-Delaware registered agent service is usually billed on the anniversary date of your corporations' filing with the Secretary of State, and normally corresponds with the State's annual report filing. Renew your registered agent services now by logging in to the client dashboard.
I am ready to incorporate… now what?
If you are ready to incorporate CLICK HERE and begin the process, by filing out our online, secure Incorporation Order Form.. CorpCo will then prepare and process your corporate documents with the State office on your behalf, based on the information in your application. Once filed, your corporate documents will be sent to you for your records.
How long will it take for my corporation/LLC to be formed?
Delaware corporations are normally formed within 1-2 business days. You may expect to receive your filed incorporation documents within five to seven (5-7) business days. The turn-around time for corporations or LLCs which are formed in States other than Delaware is slightly longer. You will generally receive your filed documents within two to three (2-3) weeks, when filing in a state other than Delaware. If you need your documents back quicker, you can choose EXPRESS service for an additional $100 (+ state expediting fees, if any). EXPRESS service normally cuts the incorporation processing time in half.
If I incorporate in Delaware, can I conduct business in other states?
Yes. You can always conduct business in other states regardless of the State you choose to incorporate in. Most states will require a corporation to register there as a foreign corporation if they are not incorporated there directly and are conducting business there. We recommend you contact the Secretary of State's office in the State(s) you are conducting business in to see if this registration will be necessary. Each state has different rules and requirements, regarding this, and you must contact each state office separately for this information. If you do need to register your existing corporation to do business in another state(s), CorpCo can assist you with this filing as well! Register now.
How many shares of stock should I authorize?
Each state has different guidelines for authorizing stock in your corporation. For Delaware corporations we recommend that you have 1,500 shares of common stock, or less, authorized. This will guarantee you the lowest fees at the time of incorporation and annually. The Delaware Annual Franchise Tax is based on the number of shares authorized, and having 1,500 shares or less authorized, will guarantee that you pay the minimum annual Franchise Tax of $75. For information about other States' guidelines for stock authorization, please contact our office! Note: Limited Liability Companies do not authorize/issue stock. Therefore, this information does not apply.
What does “par value” and “no par value” mean?
Par value refers to the minimum selling price assigned to the stock. It is NOT necessarily the selling price, however. A par value of $1.00 means that the shares cannot be sold for less than $1.00, but they can be sold for MORE than $1.00. $1.00 is simply the MINIMUM selling price. "No par value" means that there is no minimum selling price assigned to the stock, and it can be sold for whatever someone is willing to pay for it. Note: Limited Liability Companies do not authorize/issue stock. Therefore, these terms do not apply.
How do I choose a “corporate ending” for my company name?
Your corporation's name must have an approved corporate ending in order to be approved by the Secretary of State office. In most States your corporation's name must include an ending such as: Incorporated, Company, Corporation or Limited. Or, one of the following abbreviations: Co., Corp., Inc. or Ltd. The State of Delaware allows the following corporate endings: Company, Corporation, Club, Association, Incorporated, Fund, Foundation, Institute, Society, Syndicate or Limited, or their appropriate abbreviations. Limited Liability companies most often use "Limited Liability Company", or LLC or L.L.C. as their corporate endings Note: There may be restrictions on using company names that include the words, Bank, Trust, University or College.
What are the benefits of incorporating my business?
The most common reason someone chooses to incorporate is for personal liability protection. In addition, the benefits of incorporating your business may include: increasing your tax savings, raising capital, the perpetual existence of the corporate structure, and tax-free dividends. Corporations can also simplify estate and family planning. Note: CorpCo recommends that you check with your attorney or accountant to verify which corporate and/or tax structure is right for you, and to make certain that you are taking advantage of all of the benefits of incorporating your business. Incorporate now.
Why do I need a registered agent?
Each Secretary of State's office requires that a Registered Agent be named when incorporation documents or foreign corporation registration documents are filed. The Registered Agent must be someone located at a physical address in the state of incorporation or registration (P.O. Boxes and/or Mail Boxes, etc. addresses are NOT acceptable). The registered agent acts as the official point of contact for the Secretary of State's office and accepts all official mail (Service of Process, Annual State reports, other State Mail, Certified Mail, etc.) CorpCo can act as your registered agent in any state. It is extremely important to keep your registered agent informed of any changes to your mailing address or telephone number, to ensure that you can be reached when CorpCo receives official mail or service on your behalf. Appoint CorpCo as your registered agent.