Occasionally, in our office in Woodland Hills, we are asked if we incorporate in the State of Delaware, The First State as it’s known. Of course we can open a business and incorporate in Delaware! As a matter of fact, we can assist you open a corporation or LLC in all 50 States (so do our other offices in Santa Monica, San Fernando, etc.)!
Delaware (and Nevada, which we will cover in a separate blog) is a very popular place in which to form corporations. Some of the biggest Fortune 500 companies are incorporated in Delaware. One of the reasons for this is that Delaware’s laws provide heightened protection for board members against lawsuits brought by shareholders.
As an example, Delaware has a court exclusively dedicated to resolving corporate disputes. That helps keeping costs down and avoids costly litigations.
We have a few customers at the Woodland Hills location of The Document People who have incorporated in Delaware – they happen to be in the film industry. If a film production is based there, or you own real estate there and are developing a property, or you are planning to operate an internet only business, incorporating in Delaware might make sense.
However, you’ll need to keep in mind that if you are a California resident, you might be required to pay Franchise Tax Board fees regardless of where you have incorporated.
That’s why we refer our customers to CPA before deciding to take the step to incorporate in Delaware. If your CPA advises you to incorporate in Delaware, we can take care of all the necessary paperwork, find you an agent for service of process, obtain a tax ID number, and assist you with the yearly requirements to do business there.
The Document People is a network of legal document assistants who specializes in assisting customers incorporating in Delaware, and all 50 States. We look forward to offering you incorporating services in We the People Santa Monica, San Fernando, We the People Woodland Hills, We the People Glendale and The Document People Torrance, Anaheim and Oceanside.
The information contained in this blog – including information of a legal nature – is provided for informational purposes only, and should not be construed as legal advice on any subject matter.