Frequently Asked Questions
Everyone has questions when forming a corporation or LLC. You are not alone. We are here to help. Our FAQ page addresses the most pressing issues, such as whether your company needs a business bank account and how to incorporate.
See below for the questions we hear the most, and read the answers you need to know. If you don’t see your question below, please call or email us.
Yes, a U.S. company with foreign owners can hire employees in the United States. U.S. LLCs and corporations need to get an Employer Identification Number (EIN) from the IRS to hire employees in the United States and pay federal taxes. IncNow can help international customers obtain an EIN number for their LLC or corporation.
Continue Reading Delaware corporations must pay the Delaware Annual Franchise Tax on or before March 1st each year. You can pay the Delaware Annual Franchise Tax online through defrantax.com or the Delaware Division of Corporations’ website .You’ll need your business’s Delaware Entity File Number to complete the payment.
Continue Reading Delaware LLCs must pay the Delaware Annual Franchise Tax on or before June 1st each year. You can pay the Delaware Annual Franchise Tax online through defrantax.com or the Delaware Division of Corporations’ website.You’ll need your business’s Delaware Entity File Number to complete the payment.
Continue Reading No, all Delaware LLCs are required to pay the Annual Franchise Tax regardless of their income, activity level, or location of operations. The Delaware Annual Franchise Tax for Delaware LLCs is a flat fee of $300. A Delaware LLC owes this fee to the state for every year that the company is open.
Continue Reading You can pay the Delaware Annual Franchise Tax online through defrantax.com. You can also submit payment through the Delaware Division of Corporations’ website, by mail, or by phone. You’ll need your business’s Delaware Entity File Number to complete the payment.
Continue Reading Your Delaware LLC will owe Delaware Annual Franchise Tax if the company is open at any point in a given year. A Delaware LLC owes Franchise Tax no matter whether the business had any income in a given year.
Continue Reading You may wonder, “Do I need an EIN for my LLC?” A single-member LLC can either use the Social Security Number (SSN) of the single member to conduct business, or it can obtain a separate Employer Identification Number (EIN). An EIN is required for a multi-member LLC, or if you anticipate having employees. The EIN […]
Continue Reading Delaware law requires that companies incorporated in the state pay The Annual Delaware Franchise Tax. These payments are essentially “privilege fees” needed to keep a company in Good Standing. For corporations, this also includes filing a simple annual report online that lists the directors. Think of this fee as paying “dues” for the privilege of […]
Continue Reading Yes, non-U.S. citizens can form business entities in the United States. This includes: Foreign nationals; Permanent residents of the United States; U.S. resident aliens;. and more. Non-U.S. citizens can form corporations and LLCs in the United States, as long as their home country is not included on U.S. Department of the Treasury’s OFAC list (Office […]
Continue Reading Delaware is an easy and reliable state in which to incorporate or form LLCs, plus the annual cost is low and the owners of the LLC as individuals are given the strongest legal protection available by any state. This is demonstrated by a US Chamber of Commerce study of state liability systems that has rated […]
Continue Reading Business owners are understandably curious what it costs to maintain a Delaware LLC after the formation. There are two annual costs or fees associated with keeping a Delaware LLC in “Good Standing”. The first is Delaware Franchise Tax, which is $300 due annually on June 1st. It is first due the calendar year after your […]
Continue Reading IncNow® (Agents and Corporations, Inc.) provides two easy ways to discover the availability of a Delaware LLC or Corporation name. The first way is to submit an order to IncNow and we will check the name that business day. The second way is to call us at 1-800-759-2248 or email agents@incnow.com, where a representative can […]
Continue Reading IncNow® (Agents and Corporations, Inc.) offers incorporation and formation filing services, Registered Agent services, qualification services, and many others. However, under the Patriot Act we cannot open bank accounts for customers. Can You Help Me Open a Bank Account for My LLC? If you locate a bank, we can work with you to help you […]
Continue Reading A Limited Liability Company (LLC) is the most popular entity in Delaware. Eight out of ten entity filings at IncNow® are for LLCs. When initially drafted, members have the power to craft their own LLC Operating Agreements. An LLC Operating Agreement is flexible for business needs and adaptable to any business application. The LLC also […]
Continue Reading When filing in Delaware, neither the member nor manager’s name or address are required in any initial filing documents. The members are not listed on the Delaware Division of Corporations’ website as they are in some other states. The names and contact information of members are typically only kept in the Operating Agreement, which is […]
Continue Reading Delaware is the most popular state to form an LLC for people who shop around different states looking for the best state. Nine of ten LLCs formed by Agents and Corporations, Inc. (IncNow®) are formed in Delaware. Agents and Corporations makes the Delaware LLC formation process easy and offers reliable Registered Agent services. Why Delaware […]
Continue Reading Yes, you are allowed to operate a Delaware LLC for any legal business in every state in the USA. Under the US Constitution, your Delaware LLC is viewed as a legal “person” and other states cannot discriminate against this “person” based on where he/she/it was born or incorporated. This is protected under the full faith […]
Continue Reading IncNow® (Agents and Corporations, Inc.) offers limited forwarding of mail typical of the role of a Registered Agent. We only forward: Legal process (lawsuits) Certified Mail Government mail from the state of incorporation Should you wish to have an address for banking or general business, we have an affiliate who provides virtual office and mail […]
Continue Reading Yes, Delaware Corporations and LLCs can qualify to do business in all 50 states and in foreign countries. To qualify to do business in other states, you will have to apply to the state government. Usually, this involves applying to the Secretary of State for a Certificate of Qualification, although who you apply to and […]
Continue Reading No. Delaware does not have a minimum capital requirement to incorporate a corporation or form an LLC. When incorporating in Delaware, a corporation must designate the amount of common stock (shares) that the corporation is authorized to issue and the par value for each (share of or type of) stock. “Par value” is the minimum value that […]
Continue Reading Delaware has no sales tax. Unlike most states, Delaware has no intangible personal property tax, which has been referred to as the “Delaware loophole”. No Delaware income tax has to be paid or filed, and a business license is not required if the corporation or LLC does not do business in Delaware.
Continue Reading Upon formation, all for-profit stock corporations are General Corporations and by default they are classified by the IRS as a C-Corporation for tax purposes. Some business owners may wish to remain a C-Corporation, while others may want to become an S-Corporation. What Is a C-Corporation? C-Corporation is the default tax status of all corporations. A […]
Continue Reading Incnow (Agents and Corporations, Inc.) can assist you with: Forming a Delaware Series Limited Liability Company (Series LLC) For more information about the Series LLC, such as advantages of a Series LLC, please visit our Series LLC page. Incnow has established over 1,000 Series LLCs over the past 10 years and is expert in the […]
Continue Reading Owners of a newly-incorporated business often wonder if they need a Delaware business address. No, you do not need to have a business address or office in Delaware. All businesses incorporated in Delaware require a Registered Agent with a physical street address in Delaware, such as Agents and Corporations (IncNow®). IncNow is available during regular […]
Continue Reading Yes, one person (U.S. or foreign) can be the President, Secretary, Treasurer, sole Director, and sole stockholder of a Delaware Corporation. Also, one person (U.S. or foreign) can be the member and manager of an LLC.
Continue Reading An LLC will need to obtain an EIN if it has multiple members or employs anyone. An EIN is required to withhold taxes from employees, open bank accounts, and any application that requires a business to validate its authenticity. The EIN is the corporate equivalent of a Social Security Number (SSN) for an individual. The EIN […]
Continue Reading Incorporating your business in Delaware is fast and easy compared to other states. You will typically receive your incorporation documents within 4-6 days after submitting the necessary documents to the Delaware Division of Corporations. The Delaware Division of Corporations is known for quickly and efficiently processing filings and forms nearly 2 million business entities per […]
Continue Reading It can be difficult to decide between an LLC vs. a corporation when you’re first incorporating. But what’s the difference between an LLC and corporation? There are actually a lot of nuances to consider. Which type of entity you choose will impact your yearly fees, whether you have to hold annual meetings, and how you […]
Continue Reading Yes. Delaware does not discriminate against non-citizens inside or outside the United States. Many Delaware Corporations and LLCs are formed by foreign persons. However, all businesses owned by non-U.S. persons must register with the U.S. on the FBAR form if they ever have $10,000 or more connected to the company. Additionally, income that is substantially […]
Continue Reading No. An office or bank account does not have to be maintained in Delaware. Agents and Corporations, Inc. (Incnow®) can help you obtain a nine-digit EIN (taxpayer ID number) needed to open a bank account, but we cannot help open bank accounts. However, we are glad to provide a referral for mail-forwarding, office solutions, or […]
Continue Reading Generally, the stockholders of a Delaware Corporation and the owners of units in a Delaware LLC are not personally liable to the creditors of a Delaware Corporation or LLC provided they do not personally guarantee the obligations in writing. Many people form Delaware businesses specifically to have this protection, which is the strongest available. This […]
Continue Reading Many business owners and entrepreneurs wonder whether just one person can form a company in Delaware. The answer is yes. Whether you are looking to form an LLC or corporation, you can be the sole owner and operator of your business entity. Can One Person Form a Delaware LLC? Yes, a Delaware LLC can have […]
Continue Reading The Delaware Non-Profit Corporation is sought out and used by non-profits worldwide for its many unique protections of corporate directors and officers, which may not be available for a non-profit filed in your home state. We provide the Delaware form of Certificate of Incorporation required by the Internal Revenue Service for 501(c)(3) organizations. The form […]
Continue Reading