Forming a corporation in Delaware involves multiple steps. You need to ensure that each step is formed backed by research and due diligence. Here are the steps to form your corporation in Delaware.
Step 1 is about choosing the name of your corporation. Ensure that the name includes words like ‘company,’ ‘association,’ ‘corporation,’ foundation,’ ‘fund,’ ‘club,’ ‘institute,’ ‘society,’ ‘incorporated,’ ‘syndicate,’ ‘union’ or ‘limited.’ If the name is in another language, it should include words or abbreviations that have a similar meaning but are written in Roman letters or characters.
Step 2 involves the preparation of the Certificate of Incorporation - Stock Corporation. The same has to be filed with the Delaware Secretary of State. There is the option to file online as well as offline. The Filing Cover Memo is a must during the filing. Also, the filing fee has to be deposited.
Step 3 is about appointing an agent. The agent should be registered with the state and can be an individual or a corporate entity.
Step 4 is the preparation of the bylaws or rules of operation. It is not legally binding to file the bylaws with the state. However, the formation of the rules helps prove that your corporation is legitimate, and it establishes the ground operating rules.
Step 5 involves the appointment of the directors on the board till the 1st AGM is held for shareholders. The Incorporator appoints the directors by filling in an Incorporator’s Statement. It is not mandatory to file the statement with the state.
Step 6 of forming a corporation in Delaware is issuing stocks to shareholders. In most cases, paper stock certificates are issued. Details of the shareholders should be filled in the stock transfer ledger.
Step 7 is about filing the annual report. It is a must. Corporations also need to pay the franchise tax along with the annual report.
Alongside, your corporation must apply for the Employer Identification Number. It can be filed online at the IRS website.