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Quick Notes on Incorporating in Delaware


Processing time State fees Our fee
20 business days
on average
$300
C-Corp or S-Corp
$300
LLC
Delaware is the most popular to state to Incorporate or Organize. The upfront benefits of incorporating in Delaware are applicable to both large and small businesses. For example, Delaware offers low incorporation and franchise fees. The fee for getting an corporation formed is $89, while the LLC fee is $90. The average state processing time for incorporating is about 6 to 8 weeks. However, for an additional $50, Delaware will process and incorporate the business in about 1 week. Another benefit of incorporating in Delaware is that companies which conduct all business outside of Delaware are not subject to Delaware state income tax. Management Flexibility is also an advantage, as Delaware allows a corporation with fewer than 30 shareholders to be managed directly by the shareholders.

The annual fee to maintain a Delaware Corporation is $60, whereas the annual fee for a Delaware LLC is $200.

Keep in mind: if you choose to incorporate in Delaware, you may have to "qualify" to do business in other states that you operate in. This means that you will probably have to qualify to do business in your business' home state, if that state is not Delaware. Further, you may have to file annual reports in both Delaware and your home state of operation, and will likely be subject to franchise taxes in both states.