Incorporating in Delaware

Over two-thirds of all Fortune 500 companies are formed in Delaware, and for a good reason! Business owners from around the world choose to incorporate in Delaware for our business-friendly laws and higher levels of privacy for owners. You can join their ranks by incorporating a business of your own today. To streamline the Delaware company formation process for first-time business owners, our team has developed a simplified, 3-step formation checklist for you to download.

Download our 3-Step Business Formation Checklist (PDF)

Download our 3-Step Business Formation Spanish Checklist (PDF)

Our Business Formation Checklist simplifies the Delaware formation process into three simple steps: Determine Your Business Type, Choose Your Business Name, and Form Your Business.

Determine Your Business Type - Choose from a variety of business entity types, including the LLC, general corporation, limited partnership, and non-profit. Each has its own perks, so consider your long-term business goals.

Choose Your Business Name - Choose a business name that suits your brand and adheres to all necessary guidelines. You can also perform a name check to ensure that your chosen name is available.

Form Your Business - The last step is to form your company! Simply choose one of our affordable formation packages and we’ll help submit your formation documents to the Delaware Secretary of State.

Alongside a short description of these steps, our checklist also features a list of reasons to incorporate with Harvard Business Services, Inc. Through our website, you may be able to complete the entire Delaware company registration process in minutes. If you have any questions, give our incorporation experts a call at 800-345-2677, or send us a chat or email.

As formation experts, one of our goals is to make the business formation process as approachable as possible, so if you have further questions about incorporation in Delaware, you may find your answer below.

Why Companies Incorporate in Delaware

Entrepreneurs from across the globe choose to incorporate in Delaware for its business-friendly legal environment and the Delaware Court of Chancery, a specialized court that focuses on business disputes. The state also offers a well-developed and predictable body of corporate law that is widely regarded as favorable to business owners. Additionally, Delaware provides a higher level of privacy. Companies are not required to publicly disclose the names or addresses of officers and directors at the time of formation. This allows a corporation to keep the identities and addresses of its officers and directors off the public record until an annual report is due.

You can also read more about Why Companies Incorporate in Delaware on our website.

Before You Incorporate

Before you register a Delaware corporation, there are a few steps that just about every business will need to take to ensure its success. As we alluded to in our 3-step guide, start by choosing the type of Delaware business entity that is best suited to your needs. General corporations, close corporations, non-stock corporations, benefit corporations, LLCs, series LLCs, and limited partnerships are all available when forming a business in Delaware.

Next is to select a business formation package. At HBS, we offer three different packages that start at just $229, with Expedited Service available for an extra charge. Our pre-priced packages include all state filing fees, Registered Agent Fees, and shipping costs. Unlike some other corporate filing companies, there are no hidden fees.

The final step before you incorporate is to select the name for your new company and the suffix that describes the type of business entity. Commonly accepted suffixes for corporations are:

Incorporated (or Inc.)
Corporation (or Corp.)
Company (or Co.)
Limited (or Ltd.)
LLC, L.L.C., or Limited Liability Company

Keep in mind your company name cannot contain the words "bank," "insurance," "trust," "university," or "college."

We can check the availability of a company name in Delaware for free at your request. You can also learn more about the dos and don’ts of naming a company on our website.

Delaware Corporation Leadership

A Delaware corporation typically has a leadership structure consisting of shareholders, directors, and officers. Shareholders are the owners of the corporation and have the power to vote on major decisions, such as electing the board of directors and approving significant corporate changes. While they don’t manage day-to-day operations, shareholders play an important role in shaping the long-term direction of the company.

At the next level are the directors, who form the board of directors. The board is responsible for overseeing the corporation’s overall strategy. Directors make high-level decisions, appoint and supervise the company’s officers, and ensure the business is operating in the best interest of its shareholders. At least one director is required to run a Delaware corporation.

Finally, officers, such as the president, treasurer, CEO, CFO, etc., are appointed by the board to handle daily operations. These executives implement the board’s policies, manage employees, and oversee the company day in and day out. A corporation can increase or decrease the number of shareholders, directors, or officers at any time.

Do I Need a Delaware Address to Incorporate in Delaware?

Generally, you do not have to form your business in the state in which your business is physically located, nor do you have to form your business in the state in which you conduct most or all of your business. In other words, you don’t need a Delaware address to register a Delaware corporation.

However, you do need to hire a Delaware Registered Agent, as this location will serve as the official address for receiving legal and official documents on behalf of the company. Using a registered agent service allows you to comply with the requirement of having a Delaware address to incorporate a business in Delaware, without having to maintain a physical office in the state.

Delaware Corporation Taxes

After forming a Delaware corporation, your company must pay an annual franchise tax by March 1st each year. However, if your company is not physically operating in the state of Delaware, it generally does not pay state income tax.

However, incorporating in Delaware does not automatically exempt you from paying any local and state compliance matters in your home state. Delaware is considered a "tax-friendly" state, but taxes will likely still need to be paid in your home state, where the money is made. Consulting with a tax professional or legal advisor can help you understand your specific obligations.

Beneficial Ownership Reporting

Beneficial ownership reporting is a process that was designed to increase corporate transparency and combat financial crimes. Under the 2024 Corporate Transparency Act, Beneficial Ownership Information Reports (BOIR) are mandatory for most U.S. businesses formed in a foreign country. This means that businesses are required to report information about their owners to the Financial Crimes Enforcement Network (FinCEN), such as their full name, address, and date of birth. If you begin the Delaware company registration process as a foreign entity, be prepared to submit one of these reports

When to Incorporate

Once you’ve decided that incorporating in Delaware is the best course of action for your business and you have the funds available, you should incorporate your business right now. Incorporating early will allow you to reap the tax benefits and limited liability protection right away. You’ll also be able to protect your personal assets before hiring employees, adding other partners, or taking out a loan. Since a sole proprietorship comes with more liability, consider incorporating it before your company takes on any risk.

The Cost to Incorporate

State filing fees, registered agent fees, and franchise taxes are traditionally the main costs associated with forming a Delaware company. At Harvard Business Services, Inc., you can choose from a number of Delaware incorporation packages that cost as little as $229. After incorporating a business, you’ll need to maintain a registered agent for the life of your company. All of our incorporation packages come with a full year of our registered agent services. Our annual $50 Delaware Registered Agent fee is guaranteed never to increase.

Apply for a Federal Tax ID Number

A federal tax ID number, also known as an Employer Identification Number (EIN), is a unique nine-digit number issued by the IRS to identify a business for tax purposes. It functions much like a Social Security number, but for a company. Businesses use an EIN to open bank accounts, file tax returns, and hire employees, so they’re rather critical to the Delaware company formation process. Most U.S. businesses are required to have one, even if they don’t have employees.

At Harvard Business Services, Inc., we can obtain a Federal Tax ID Number for you at a nominal cost. The EIN can be ordered at the same time as the new formation package.

Opening a Bank Account

If you form your company in Delaware, one of the many advantages is that there is no requirement to maintain a company bank account in the state of Delaware. Many of our clients open bank accounts in locations (the state or country) where it is most convenient to conduct their banking transactions. Remember, even non-residents of the U.S. can form a Delaware company.

Converting a Business to a Delaware Corporation

If you’ve already formed a business, you can convert it to a Delaware corporation. This process involves several steps and may vary depending on the type of business entity you currently have. After confirming your own state laws, you’ll need to gain approval from the shareholders. Next, your Delaware Registered Agent can assist in preparing and filing a Certificate of Conversion with the Delaware Division of Corporations. This document will formally recognize the change from your existing entity to a Delaware business. You can learn more aboutconverting an LLC or corporation to a Delaware company on our website.

How to Incorporate in Delaware with Harvard Business Services, Inc.

In this video, Rick Bell, our founder and CEO, explains how inexpensive and efficient our services are, and what makes Delaware such a unique attraction for incorporating your business.

How Do I Get Help Incorporating?

With Harvard Business Services, Inc., help is never more than a few keyboard clicks or a phone call away. Get live help in real time on our website or speak directly to one of our incorporation specialists by calling 1-800-345-2677. You can also email us with questions about forming a business. Contact our team to begin the Delaware incorporation process right away.

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