There are a number of Delaware small business structures entrepreneurs often consider as they start their businesses. Which structure is “best” depends on a number of factors, such as the number of owners involved, the present and future goals of the business, the wish of owners to limit their personal liability, and the desired type of taxation. The Castro Firm can assist you in deciding which company formation works best for your Delaware small business.
We assist our Delaware small business clients with the formation of their companies, whether they are corporations, partnerships, LLCs, or LLPs. Our firm also serves as a Registered Agent in the State of Delaware for out-of-state corporations.
One of the most important decisions a new Delaware small business owner must undertake is what legal structure your company will take.
The most common business structures are:
Sole Proprietorship: A single person owns this type of company. You can use your social security number and do not necessarily need an EIN Federal Taxpayer Identification Number.
General Partnership: This suits a business owned by more than one person. You can have an oral agreement to share profits in establishing a general partnership. However, a claim against one partner becomes a claim against the partnership. According to Delaware law, the partnership trade name must be filed with the Prothonotary’s Office.
Limited Liability Company: There is limited liability to all owners of this business, whether or not they are active in managing the business. This is the most popular form of business for small businesses and owners of real estate. LLC’s are now replacing general and limited partnerships. These companies require a Registered Agent and a registered office in the State of Delaware.
Corporations: Corporations have to file Articles of Incorporation when a new legal entity is created. This structure also provides for limited liability for all investors and participants, whether active or passive. This structure requires both Registered Agent and a registered office in the State of Delaware.
The Castro Firm can help you choose and establish the right business structure for your new company, with expertise and personalized attention. Contact us for the best possible legal advice.