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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 Delaware business bank account and how to incorporate in Delaware.

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.

What is the Delaware Franchise Tax?

It is really important to maintain the good standing of a company in Delaware. The company’s liability shield is only in place when the company is currently in good standing. When good standing is lost, the shield goes down, exposing the company owner’s personal assets to creditors of the company. Delaware law requires companies incorporated […]

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Why should I incorporate or form an LLC in Delaware?

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 […]

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What are the annual costs associated with a Delaware LLC?

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 LLC is formed. The second cost is a registered agent (“R.A.”) fee of $99 due annually […]

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How can I find out if the name I want is already taken?

IncNow (Agents and Corporations, Inc.) provides two easy ways to discover the availability of an entity 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 check the availability […]

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Can you help me open a bank account to form an LLC?

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. If you locate a bank, we can work with you to help you obtain any additional documents required, which may include a Statement of […]

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What entity should I form?

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 […]

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Are the names of members and managers of an LLC public record?

When filing in Delaware, neither the member nor manager’s name or address are required in any initial filing documents. The formation service will designate an authorized person or organizer in the office, who will sign the initial filing document, rather than a member or manager of the LLC. The registered agent, such as Agents and […]

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What state should I use to form my LLC?

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. Generally, if […]

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Are Delaware LLCs able to do business in other states?

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 […]

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Must my Delaware LLC request an EIN from the IRS?

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. We recommend that you obtain an EIN number soon after the formation of your LLC whether you are forming […]

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Do you offer a mail forwarding service?

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 […]

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Can my Delaware Corporation or LLC do business in other states?

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 […]

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What is a General C-Corporation?

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. For more information about C-Corps, visit the tax tips page. It is important to distinguish the federal “tax election” from the default state filing. A corporation cannot select a “C” or […]

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Does IncNow offer other specialized incorporation or LLC services?

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 […]

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Do I need a business address in Delaware?

No, you do not need to have a business address or office in Delaware. All Delaware incorporated businesses require a Registered Agent with a physical street address in Delaware, such as Agents and Corporations (IncNow), which is available during regular business hours (9-5, Monday through Friday) to receive service of process and notices from the Delaware […]

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How long does the formation process take?

After completing the Online Incorporation Form inside the United States, you will typically receive your formation documents via Priority Mail Delivery within 4-6 days. This is based on the typical shipping time and the processing time for the Delaware Division of Corporations. Because IncNow is a Delaware Commercial Registered Agent, we have higher priority for filings with […]

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Can a foreign person or Corporation form a Delaware Corporation or LLC?

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-US persons must register with the US on the FBAR form if they ever have $10,000 or more connected to the company. Additionally, income that is substantially […]

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Do I have to maintain an office or bank account in Delaware?

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 […]

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How does a Delaware Corporation or LLC limit my liability?

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 […]

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Can one person form a Corporation or an LLC?

Yes. One person (U.S. or foreign) can form a corporation or LLC in Delaware. These are known as “single-member LLCs,” and can be used for everything from financing real estate transactions to solo consultant practices. However, it is still wise for single-member LLCs to have a written and executed Operating Agreement. Technically every Delaware LLC must have […]

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Can IncNow help my Delaware Non-Stock/Non-Profit Corporation qualify as a tax-exempt charitable, religious, educational, and scientific organization?

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 should be […]

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