Frequently Asked Questions
Why Should I Incorporate?
Why do so many corporations incorporate in Delaware?
Do I have to live in Delaware?
What is a registered agent?
Must I use an attorney to incorporate?
Can I start a corporation with one person?
What is an EIN?
What is a Certificate of Good Standing?
What is a Certificate of Good Standing used for?
What if I want to incorporate in Delaware but do business in another state?
What is a C Corporation?
What is a General Corporation?
What is an S Corporation?
What is an LLC?
Establish a Corporate Identity: Incorporating your business means you are serious about the business you are doing. It adds substance to your product, service or venture. It communicates stability, authority and professionalism.

Protect Your Personal Assets: Incorporating your business separates your corporate assets from your personal assets so your personal assets are not at risk. By incorporating, you normally shield any assets that are not part of the business, such as your home, car, personal bank account, etc.

Take advantage of Tax Savings: Avoid double taxation by incorporating your business venture. One of the most useful steps the owner of a small business can take is to establish a Subchapter S corporation. By doing this he can avoid the double taxation that occurs when corporate income is subjected first to federal income tax, and then taxed again as personal income when it is returned to shareholders in the form of dividends.

First consider the Delaware General Corporation Law, which is one of the most advanced and flexible corporation statutes in the nation. Delaware courts and, in particular, the Court of Chancery, have over 200 years of legal precedent as a maker of corporation law and continue to set the precedent for legal systems across the country. There are many benefits that come from incorporating, including tax and privacy advantages. One of the most important reasons to incorporate is the liability protection a corporation affords you. By incorporating you are able to insulate your personal assets from those of the corporation and shield them from litigation should company be sued. The sate of Delaware offers an especially welcoming environment for corporations. Delaware is the least costly state in which to form a corporation or LLC, and many businesses also appreciate Delaware's favorable corporate laws, tax structure and Chancery Court.

No, Delaware law requires every corporation to have and maintain in the State a registered agent which may be either an individual resident in the State whose business office is identical with the corporation's registered office, or a domestic corporation, or a foreign corporation authorized to transact business in the State.

A registered agent is your representative in the State of Delaware. This person can handle the entire incorporating process for you.

No, but you should contact an attorney concerning legal matters. Corporate Holding Services, Incorporated acts in an administrative capacity only.

Yes, in every state excluding Arizona.
EIN stands for Employer Identification Number, and every corporation must have one. It is similar to a social security number for your business. To receive one you must apply to the Internal Revenue Service, using form SS-4.

A certificate of good standing (CGS), also referred to as a certificate of existence, is a document issued by the Secretary of State which certifies that your corporation does exist legally and that it is in good standing with the state.

One of the most common uses for a CGS is securing authorization to do business as a foreign corporation. If you incorporate in one state and decide to do business in another, you may need to register as a foreign corporation in the second state.

If you feel that the advantages of incorporating in Delaware make sense, you can file for a certificate of authority to do business as a foreign corporation in the state where you conduct business. This allows you to take advantage of Delaware law while maintaining the corporation legally in another state.

Close Corporation or C-Corp in most states where close corporations are recognized, they are limited to 30 stockholders. This type of corporation is particularly well suited to the entrepreneur who wants to be a one-person corporation, or a small group of individuals who will all participate in running the business.

This structure is most suitable to the corporation which plans to have more than 30 shareholders and plans to make large public stock offerings.

Many business owners find the S corporation especially attractive in that all earnings or losses are passed through directly to their personal income tax return. As a result, it avoids the double taxation feature of general business and close corporations. Certain requirements must be met before qualifying for S Corporation status, and we recommend that you consult with your tax advisor before electing S Corporation status.

The Limited Liability Company (LLC) combines the best features of corporations and partnerships: the corporate advantage of limited personal liability and the taxation advantage of partnerships. The LLC is now recognized in most states and is a highly flexible business entity created in response to the demand for a better alternative to traditional forms of business