Delaware LLCs are a popular choice for businesses looking to form a limited liability company. There are many benefits of forming a Delaware LLC, including tax advantages and limited liability protection. In this blog post, we will walk you through the process of creating a Delaware LLC, including the steps involved in filing Articles of Incorporation.
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What is an LLC and what are the benefits of forming one in Delaware?
A limited liability company, or LLC, is a type of business entity that offers limited liability protection to its owners. LLCs are formed by filing articles of organization with the state in which the company will operate. One of the primary benefits of forming an LLC is that it shields the owners from personal liability for the debts and obligations of the business.
This means that if the LLC is sued or incurs debt, the owners’ personal assets are protected. In addition, Delaware LLCs enjoy a number of features that make them attractive to businesses, including flexible management structures and no minimum capital requirements. As a result, Delaware has become a popular jurisdiction for incorporating LLCs.
What is an Articles of Incorporation and what are the benefits of forming one in Delaware?
The Articles of Incorporation, also known as the Certificate of Incorporation or the Corporate Charter, is the founding document of a corporation. It is filed with the state in which the corporation will be formed and outlines the basic information about the company, such as its name, address, and stock structure. The Articles of Incorporation also establishes the company’s purpose and sets forth the rights and responsibilities of its shareholders.
One of the benefits of incorporating in Delaware is that it provides corporations with a wide variety of flexible corporate structures to choose from. Delaware also has a well-developed body of corporate law and a highly-skilled judiciary that is experienced in resolving business disputes. As a result, many businesses choose to incorporate in Delaware in order to take advantage of these benefits.
How to file Articles of Incorporation with the Delaware Division of Corporations?
1. Gather the required information. You will need to provide the name and address of your corporation, as well as the names and addresses of your incorporators. You will also need to select a registered agent for your corporation.
2. Prepare the Articles of Incorporation. You can find a template for the Articles of Incorporation on the Delaware Division of Corporations website.
3. File the Articles of Incorporation. You can file online, by mail, or in person. The filing fee is $89.
4. Pay the annual franchise tax. The annual franchise tax is $75 for most corporations.
5. Publish a notice of incorporation. Once you have filed the Articles of Incorporation, you will need to publish a notice in a newspaper of general circulation in Delaware. This notice must be published within 60 days of filing the Articles of Incorporation.
After you have completed these steps, your Delaware LLC will be officially formed! For more information on forming a Delaware LLC, check out our blog post on the topic.
What information needs to be included in the filing of Articles of Incorporation in Delaware?
To file Articles of Incorporation in Delaware, you will need to provide the following information:
- The name of the corporation.
- The address of the corporation’s principal office.
- The names and addresses of the corporation’s directors.
- The name and address of the corporation’s incorporator.
- The purpose of the corporation.
- The authorized capital stock of the corporation.
- The number of shares of each class of stock that the corporation is authorized to issue.
- The par value of each share of stock.
- The name and address of the corporation’s registered agent.
This information can be found in the template for the Articles of Incorporation on the Delaware Division of Corporations website.
The process for approving your new LLC
Approving your new LLC can be a complex process, but it doesn’t have to be. Here’s a step-by-step guide to getting you through it:
1. File your LLC application with the state office. This will include paperwork and fees.
2. Once your application is received, it will be reviewed by the LLC division of the state office.
3. If everything is in order, your LLC will be approved and you’ll be issued a Certificate of Organization.
4. You’ll then need to file Articles of Incorporation with the state office. This establishes your business as a legal entity.
5. Once your Articles of Incorporation are approved, you’ll be issued a Business License. Congratulations, you’re now officially in business!
Tips for running your LLC effectively and maintaining compliance with Delaware law
Any business owner will tell you that running a successful company is no easy feat. There are a million and one things to keep track of, from employee morale to keeping up with the competition. But if you’re the owner of a limited liability company (LLC), there are a few extra things you need to keep in mind in order to maintain compliance with Delaware law. Here are some tips for running your LLC effectively:
- Keep your business records up to date and in order. This includes maintaining accurate financial records and ensuring that all required documents are filed with the state.
- Hold regular meetings with your LLC’s members. During these meetings, discuss important business matters and make sure everyone is on the same page.
- Stay current on developments in Delaware LLC law. This way, you can be sure that your company is following all the latest requirements.
By following these tips, you can help ensure that your LLC is compliant with Delaware law and run smoothly and effectively.
While there are many considerations to take into account when forming an LLC, the benefits of doing so in Delaware can be great. By taking the time to file Articles of Incorporation with the Delaware Division of Corporations and following the tips for running your LLC effectively, you can set yourself up for success and maintain compliance with state law.
Frequently Asked Questions
What are articles of incorporation called in Delaware?
When you establish a Delaware entity, the organizational document filed with Secretary of State is called Certificate of Incorporation or Formation.
How do I find the articles of incorporation for a company in Delaware?
You can download or pick up a copy of the Order Form from either Corporation Division at DFS, but if you want to fill it out digitally there is an option for that as well.
What is in the articles of incorporation?
The articles of incorporation are a legal document that provides the foundation for your new company. They’re filed with local authorities and outline exactly what you want to set up, including information like name or location.
Why is it better to incorporate in Delaware?
Corporate cases in Delaware do not get stuck on dockets behind the multitude of non-corporate ones. The Court of Chancery was created for this very reason – to hear corporate law disputes without juries and rule fairly, quickly with no delay or bias against either side.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.