Risk Management Blog

First Corporate Solutions recently hosted a free webinar event, Delaware, Corporate Capital of the World. For those of you who were unable to attend, we recap some of the main points from that presentation here in this blog post.

As most of you are aware, Delaware is an incredibly popular state for business formations . The state’s tax codes, chancery court, body of law and state legislature all promote a business friendly philosophy and bias against regulation that business owners find very attractive.

In fact, incorporating in Delaware is so common that there are more registered entities in the state of Delaware than there are residents of the state! The latest figures indicate that 50% of all publicly traded companies are organized in Delaware, including 65% of the Fortune 500.

Naming the Entity

The Delaware Division of Corporations has some very specific rules with regard to the naming of registered entities. When incorporating in Delaware, to avoid rejection you will want to be sure your name is free from regulated words such as bank, insurance and Olympic. The state strictly monitors the use of these types of words to protect the public from confusion and fraud.

A corporate name must include the unique name of the corporation, and one of the following corporate identifiers: association, company, corporation, club, foundation, fund, incorporated, institute, society, union, syndicate, or limited. For a Limited Liability Company, the name must include L.L.C., LLC, or Limited Liability Company.

Expedited Filing Options

The Delaware Division of Corporations offers a variety of expedited filing options for your time-sensitive transactions. Here are the services levels and their corresponding state charges:

• 24 Hour Service – $50-$100 (fee varies based on document type)
• Same Day Service – $ 100-$200 (fee varies based on document type)
• 2 Hour Service – $500
• 1 Hour Service – $ 1000

Why Work With a Service Company?

Document filers can work with the Delaware Division of corporations directly, but there are some tremendous benefits to submitting your formation document through a service company rather than going it alone. Those who work directly with the state can fax their documents in for filing, but must wait for the filed documents to be returned via U.S. Mail (Fed Ex or UPS, if the filer provides a shipper number.) The delivery process can add several days to a formation, even more if the document is rejected.

Service companies in the state of Delaware have direct access to the state’s system and can offer quicker turn-around, notifying you of successful filing or rejection in only a matter of minutes. Additionally, service companies in Delaware can also check the availability of proposed business names and reserve them for you at no charge. Keep in mind though, if a service company reserves your entity name, the name is now tied to the service company and you must work with them to file the document.

First Corporate Solutions offers same day turnaround for Delaware state work – with no rush fees!  And our Delaware branch office is open until 8:00 PM Eastern to handle all of your urgent search and filing requests. Contact FCS today for a FREE consultation!   800.406.1577 |  info@ficoso.com

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