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How to Form a Quarantine Business

By IncNow | Published May 21, 2020

startup guyIt’s no secret that COVID-19 is changing the lives of many people. On the job front, some people are facing unemployment or job insecurity, and workplaces are starting to discover that the standard office model may not be efficient or even needed anymore.

The pandemic has also delivered a blow to the economy, causing some companies to struggle or look for a new way of operating. There is a silver lining, though. While the global pandemic has caused new health and economic hardships for the world—history has shown that great companies tend to come out of economic recessions like this.

Bill Gates founded Microsoft in 1975, the same year as the oil embargo recession. Many of today’s well-known tech companies like Uber, Square, and Airbnb were founded during the 2009 recession.

That, coupled with people staying home more and a greater demand for new, stay-at-home services, suggests the next great businesses may come out of quarantine. Got a good idea for the next great business? Here are some important things to know about taking your quarantine business to the next level.

Should I Incorporate My Quarantine Business?

Once you have your business plan set, it’s wise to incorporate your business sooner rather than later. There are a few reasons for this:

  • Incorporating your business helps separate your personal assets from those of your business, only from the time it is filed. Delaying the filing delays that separation, exposing you to pre-incorporation promoter liability.
  • Creating a corporation or LLC shows would-be investors, partners, employees, contractors and customers that you’re serious about your business.

Many choose to incorporate in Delaware. Why? When you incorporate in Delaware, your business is subject to Delaware state law, which is most favorable to business owners. The cost to form and maintain a Delaware corporation or LLC in this premier jurisdiction of choice is also affordable. You can start a Delaware corporation or LLC for less than $300.

Keep in mind that you don’t need to visit the state of Delaware to form a Delaware LLC. You don’t even have to be a Delaware resident or to have your business located in Delaware. YouTube, for example, is one of many Delaware LLCs (a subsidiary operating company that Alphabet Inc., the Google holding company, owns) that operate in California. Most states outside Delaware do not have the favorable court system or laws, Delaware has honed over the past century. That’s why most of the S&P 500 are incorporated in Delaware. Whether you are a future unicorn or a one-person consulting business, you can too.

How Can You Form a Quarantine Business?

The incorporation process is easy. In general, it follows these steps:

  • Decide if you want to form a corporation or LLC. There are pros and cons to each entity (see our breakdown of the two for more). But while more than 70% of companies that incorporate in Delaware are LLCs, the choice is ultimately yours.
  • Check to see if your company’s name is available. If you’re interested in forming a company through IncNow, you can submit an order with us and we will check the name that business day. You can also call us at 1-800-759-2248 or email, where a representative can check the availability of a desired entity name at no charge.
  • Choose a registered agent. The Delaware LLC Act requires any company incorporated in Delaware to have a Delaware Registered Agent with an in-state street address. IncNow can act as your registered agent for a small annual fee.
  • Incorporate your company. When you incorporate with a registered agent that is operated by Delaware corporate attorneys, it gives you confidence in the documents you receive. IncNow can incorporate your corporation or LLC quickly (just one-business day) online. Just fill out a simple form, and we’ll take care of the rest.

Incorporating is an important step in taking your quarantine business to the next level. If you have any questions about the process, or about incorporating in general, please call reach out to us at 1-800-759-2248 or email

When deciding where to form your company, consider that Delaware has advantages over your home state that may benefit you. Go