Getting Started on a Delaware Corporation for Your Business
Starting a business is both an exciting and intimidating process3 min read
Starting a business is both an exciting and intimidating process. One area to pay particular attention to is the legal structure you choose for your business. One popular option is to form a Delaware corporation, as this offers numerous advantages and can help you with financing from investors in the future. However, the process of registering a Delaware corporation can be complex and you should seek qualified legal counsel who understands local regulation, especially if you are located in Los Angeles.
A business lawyer or lawyer in the state of Delaware can give you valuable advice and guidance as you set up your Delaware corporation, along with any paperwork required. In the sections below, we’ll explain the basics of forming a Delaware corporation and how you can get started.
What’s a Delaware Corporation?
In simple terms, a Delaware corporation is a legal form of business that provides owners with protection from liabilities. It can provide many advantages, such as tax protection, asset protection, and limited liability protection, as well as several options when it comes to company governance and the ability to scale quickly.
One of the key advantages of a Delaware corporation is that it doesn’t have to be based in the state of Delaware. You can register your Delaware corporation from any state, allowing you to benefit from Delaware’s regulations and laws while still conducting business locally.
Getting Started in California
If you plan to do business in California then you’ll want to take several steps when setting up a Delaware corporation. Firstly, you’ll need to create a Delaware Certificate of Incorporation by submitting a document to the Secretary of State in Delaware. This document must meet all the requirements of the Delaware General Corporation Law and include information such as the corporation’s name, address and purpose, as well as the total number of shares to be authorized. The document must be filed online or by mail with the Delaware Secretary of State.
In addition, you’ll need to appoint a Delaware registered agent who resides in Delaware, create corporate by-laws and issue stock certificates to shareholders. It’s also important to note that you must keep up with all compliance requirements related to taxation, including registering the corporation in any state where it does business and filing any federal income tax returns on time.
California Legal Help
To form a Delaware corporation in California, it’s important to have a qualified business lawyer on your side. An experienced lawyer can help you with all the necessary paperwork, provide advice and guidance as you go through the process, and help with any legal issues that may arise.
Using the services of an online lawyer platform like UpCounsel can be helpful, as not only do you have access to high quality attorneys on demand, but you can also view detailed profiles of the attorneys available, including ratings and reviews of their recent work. UpCounsel is an affordable and efficient way to get access to experienced and qualified attorneys.
Forming a Delaware corporation can be a great way to give your business the legal protection it needs and benefit from the advantages of Delaware’s laws and regulations. However, the process can be complex, especially if you’re located in Los Angeles, and it’s important to seek qualified legal counsel who understand local regulations. Although Delaware corporations offer many advantages, they also bring with them certain obligations and liabilities, so it’s important to weigh up all the options and seek legal advice before making a decision.