Did you know that more than a million businesses have listed Delaware as their legal home? There’s no denying that this state is one of the most popular for launching successful brands.
If you’d like to join the wave of Delaware businesses, it’s important to do it the right way. This can save you plenty of headaches and red tape. By getting everything right the first time, you’ll be able to hit the ground running.
Are you wondering how to do it? Keep reading to learn the important steps to starting a business in Delaware.
Before starting a company, it’s important to decide on a name. This isn’t just a matter of aesthetics in branding because the name must be original. If the company name is already registered, then you can’t use it without breaking the law.
This is why it’s a good idea to spend some time brainstorming a list of potential names. If you’re struggling, be sure to think about your business’s mission statement. By staying true to your brand’s core values, you’ll home in on something that can define your company while also being original.
Be sure to search each name on the Delaware Division of Corporations website to see if it’s available or not. If the name is available but you’re not sure you want it or can’t move forward yet, it’s possible to reserve the name for as long as 120 days. To do this, you’ll have to file a name reserve application, which can be done either online or in person.
That way, you can rest easy knowing that no Delaware companies will come in and take the name out from under your nose in the meantime. If you need more time and the name reservation is about to expire, you’ll be glad to know that you can renew it.
Don’t forget to register your business name as a domain name, too, especially if you’re starting an online business. This can allow you to have an official site that’s easy to find.
Aside from your business name, you’ll have to specify what type of company you want to start once it’s time to file the appropriate paperwork. You have the option of choosing a sole proprietorship, a partnership, a limited liability company (LLC), or a corporation.
There are also some special iterations of these if you need other options. For instance, it’s possible to have a limited partnership or even an S corporation. Each legal structure comes with its own liability protection, tax stipulations, and other business finances.
This decision is even more crucial than what your business name will be, so you should take as much time as you need to weigh the pros and cons. From your investment and financing needs to your risks and liabilities, it’s worth discussing the specifics with a knowledgeable business law attorney before you make a final decision.
Once you’re ready to move forward, you can things much easier on yourself when you opt for a registered agent service. This will get you a Delaware business address for a low monthly price, a virtual mailbox, privacy protection, and so much more.
Once you’ve decided on a name and a legal structure that has the tax benefits you’re looking for, it’s time to get the relevant permits and licenses. For starters, you’ll need a federal employer identification number from the Internal Revenue Service, especially if you plan on hiring employees or filing business taxes on a separate basis.
Since banks usually ask for an EIN, it can be helpful to apply for one even if you don’t plan on hiring other employees. Other businesses often require an EIN to process payments. By getting one ahead of time, you won’t hit any roadblocks later on.
Since you can fill out the paperwork online and there’s no fee to file it, it makes sense to get that task over with while there’s no time pressure.
Aside from the EIN, you’ll also need a state business license that should be renewed each year. You can get this license from the state’s Division of Revenue. This division’s One Stop Business Licensing and Registration Service makes it simple to apply for the license online.
Additional licenses might be required depending on the kind of business you want to launch. For instance, you may need a permit from the Division of Public Health. This is why it’s a good idea to double-check the general and local requirements.
Not only are certain insurance plans required for specific businesses but they can protect your business in the event of an accident. The last thing you’d want to do is fold because you didn’t have the right coverage.
You shouldn’t waste your capital by getting more coverage than you need. This is why it’s a good idea to deal with an insurance agent you can trust.
They’ll tell you what’s necessary and recommend coverage plans that are tailor-made for your business.
Once you’ve completed all of this, then you’re ready to open your doors for business. Don’t forget to file and pay taxes on everything that’s required.
Now that you’ve learned about the important steps to starting a business in Delaware, you can turn your entrepreneurial dreams into a full-fledged reality. Starting a business is half the battle. Once you’ve launched your brand, it’s crucial to get the word out there and build your base of loyal customers.
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