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Things to consider while choosing a state to incorporate
Most of the people choose Delaware to set up their LLC or corporation. Setting up a company in Delaware indicates that the internal affairs of the company will be governed by Delaware law. Moreover, you will have access to the Delaware Court of Chancery, a specialized internationally respected business court that makes expedient and well-reasoned decisions that serve to reinforce the state's already resolute statutes. Some of the country's best business attorneys become judges on this court. Setting up a company in any other state can result in capricious juries or inexperienced generalist judges deciding your case without the depth, protection, or sophistication of Delaware law.
The best state for formation fees
Delaware is one of the more affordable states to form an LLC (14th lowest filing fee of 50 states). It also ranks well for incorporation fees (17th lowest filing fee of 50 states). However, it can be a mistake to choose a state to incorporate only based on formation fees and annual fees. Many businesses incorporate where it is physically situated, without considering the state's reputation for business law. It is essential to consider initial and recurring costs, but the primary purpose of incorporating an LLC is to shield owners against being liable personally for the debts and liabilities of the business. This is the reason why Delaware is the best choice in which to set up an LLC or incorporate your business.
The benefits of creating an LLC in Delaware.
Setting up an LLC in Delaware provides economically valuable benefits to the parties involved. Delaware corporations extend from single-person consulting companies up to multinational conglomerates. Over half of the publicly traded companies and more than 65 % of Fortune 500 companies in the United States incorporate in Delaware.
Protections under Delaware law
The primary reason for incorporating in Delaware is the protections offered by Delaware's laws and courts. The solid and well-proven asset protection shield of Delaware protects company owners’ assets. This protection shield protects both Delaware corporations and Delaware LLCs. Moreover, if you incorporate in Delaware, a business manager can be protected from business owner lawsuits. It is also true when a particular business decision results in a loss to the company. This is called Business Judgment Rule.
It offers company managers the freedom to pursue opportunities for higher rates of returns and productivity.
Ease of incorporating LLC
It is easy to have your business governed under Delaware law. No matter where your business is located, Delaware law governs a Delaware corporation's internal affairs.
You have to file the initial incorporation or formation certificate for the business with the Delaware Secretary of State. It is not required to have a business address or bank account within the state. Your business may not have an office in Delaware as long as the business has a Registered Agent. The responsibility of a Delaware Registered Agent is to forward annual notices and court notices to the business wherever it may operate.
Protection of businesses
The predictability of business law and courts in Delaware allows corporations and LLCs to structure their businesses confidently. This steady growth of certainty and integrity helps to bring added value to business owners. Delaware provides great protection, even when only one individual acts as the Director, Secretary, Treasurer, President, and sole shareholder.
Customer service of Delaware
The Delaware Division of Corporations office offers excellent customer service. It provides opportunities for expedited document approval and filing within 30 minutes. Delaware's Secretary of State runs two shifts to ensure extended hours to keep the filing office open well-past regular business hours. The Delaware Division of Corporations consistently provides efficient, consistent service to you and your business.
How to incorporate an LLC
You can incorporate an LLC in Delaware without physically visiting the state and without having any experience with the incorporation process. Delaware does not keep a record of the shareholders of the business, therefore you only need to provide the following information:
1) Name of the Company;
2) A contact person and his contact details;
3) Names of initial directors and officers; and
4) The number of shares of authorized stock.
With the help of RTRSupports Limited, you can set up your US Company from anywhere in the world within 5 to 7 business days.
