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Jeff Copeland

Guide to Delaware Corporation Registration

Incorporate in Delaware for low fees and a business friendly state government.

By Jeff Copeland, Content Product Manager, Business.com

Want to put your startup on a par with Burger King, J. Crew and half the publicly traded companies in the U.S.?  Incorporate in Delaware. More than 800,000 companies have filed for a Delaware incorporation to take advantage of the tiny state's business-friendly tax and legal system. 

You don't have to operate in Delaware to incorporate in Delaware but you will have to file and be taxed as a "foreign corporation" in the states you do operate in - so check carefully to make sure Delaware incorporation is worth it, particularly for a small business.   

Among the attractions of getting your Delaware LLC or Inc.:
1. Fees are low for Delaware incorporation.
2. If you incorporate in Delaware but don't operate there, you pay no state income tax or business license fees, though there is a low annual franchise fee.
3. No inheritance tax is collected on stock in a Delaware LLC or Inc. held by non-residents of Delaware. 
4. A Delaware incorporation requires no public disclosure of business owner names (except in court or law enforcement actions).
5. Special non-jury business courts settle disputes for companies that incorporate in Delaware.

Action Steps
The best contacts and resources to help you get it done


Incorporate in Delaware through the state's web site

You don't have to visit to incorporate in Delaware, though you do have to hire a local registered agent to start and maintain your Delaware incorporation. The state Division of Corporations web site is a convenient gateway to the Delaware incorporation process.
I recommend: Check the FAQs and the fees, download Delaware LLC or Inc. filing documents, check for corporate name availability, and locate a registered agent at the Division of Corporations site.

File through a Delaware incorporation service

Incorporation services will take care of the entire process, supplying the documents and the registered agent needed to incorporate in Delaware. Some promise same-day filing. The fees are moderate and you can handle everything online.
I recommend: The Company Corporation and LegalZoom are leaders in incorporation service. Compare more offers at Business.com's Delaware incorporation services directory - this is a highly competitive niche.

Check the competitor to a Delaware LLC or Inc: Nevada incorporation

Nevada is the Delaware of the west, with a Delaware style business court, and no corporate income tax or franchise tax on a Nevada incorporation. Many other states have made their incorporation services friendlier so take a good look at your home state, too.
I recommend: The Nevada Secretary of State makes the case for Nevada incorporation.  Find your state's secretary of state office to see incorporation fees and rules.

Tips & Tactics
Helpful advice for making the most of this Guide

  • Step one of your Delaware incorporation should be to reserve your corporate name online, before you start the paperwork.
  • Once you incorporate in Delaware, you can file tax returns and pay annual fees online.

The official source of Delaware Corporation Registration is
the Delaware Corporation Registration page at Business.com

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