form a delaware corporation

form a delaware corporation

Your Corporation and Its Registered Agent

By By Howard Gibson

Remember what the purpose of having a registered agent. It is to have a physical address and representative in the state where you are registering your corporation. Regarding service of process, in any legal matter, including summons, you need to be notified by your registered agent as soon as possible of any new developments.

Being forced to deal with things by long distance communications, and the expense of paying for a registered agent can cause their own problems. If profit margins are low, the small advantages of low or no taxes will not be overwhelming. These advantages become more important when you are dealing with an enterprise that has significant profit from the start. Then no corporate taxes can add up. You can learn how to form corporations or Limited Liability companies (LLCs) from information you can get from each of the Secretary of State offices. Information and recommended incorporation companies can be gotten from the US Small Business Administration (SBA).

Forming a corporation on your own is not always or even usually the best option. All business owners need some assistance, but it is not necessary to have professionals do everything for you. Look at some of the websites available to help you. These sites are geared to making the incorporation process as easy as possible and the information they provide on their websites can actually be used to help you form a corporation on your own. They often have useful help sections to answer questions like what is par value, the minimum price of a share, below which it cannot be issued; what tax benefits could you receive by incorporating in low or no tax states, etc. Take note of the information they ask on their online incorporation applications as that is a good indication of what you will need to provide to the state if you continue to do the incorporation on your own.

It shouldn't be that devastating to have the name of the actual owner of corporations listed with their registration. The Delaware General Assembly passed new legislation that will require a Delaware registered agent to maintain the name, business address and telephone number of a natural person contact for each domestic or foreign entity that it represents in Delaware, not just the titles of various officers.

The statute requires each entity to provide to its registered agent the required contact information. Failure by a registered agent to collect and maintain such required contact information may result in the Secretary of States refusal to file documents submitted by the registered agent as well as the registered agent being stopped from acting as the companies legal representative. The failure, to register and designate a registered agent, may interfere with a company's ability to legally enter into contracts and gain access to the state courts. Moreover, it may subject the company to monetary, civil, and possibly criminal sanctions. So, its important to keep on top of changes in the state regulations involving registered agents.