Want to incorporate? Hate lawyer fees and capital requirements? A Delaware Corporation is perfect for you!
Wherever you do business, you should protect yourself by giving that business legal standing by incorporating it. Incorporation creates your company’s legal identity. It protects your personal assets. It offers tax benefits. It is the basis of opening a bank account and accessing a payment gateway.
So, with all of those benefits, why doesn’t every entrepreneur in the world, rush to his local Companies House (where corporations are registered) and sign up? Often, there are two simple reasons. Registering a company can be complicated and it can be costly, both in filing fees and the minimum capital requirement.
The first reason, legal difficulty, may mean that it is absolutely imperative that a lawyer or a notaire create the filing document. In some jurisdictions, this may be a stated, legal condition of the filing. Naturally this adds a heavy layer of fees and upfront costs.
The second reason, cost, comes in two parts. First the initial filing fees for a Delaware LLC or Corporation. These may be high in certain jurisdictions, but will rarely exceed a few hundred dollars in Delaware. The real expense come in the mimimum capital requirements. This means the total amount the company must show as paid in capital. This means that it is the amount that may be tapped by creditors, by employees or by litigants against the company. In effect, your minimum capital is the equivalent of your cash on a counter, ready to be grabbed by any interested party. An example of this is the €25,000 that German companies are required to have in paid up capital.
Fortunately there are corporate friendly venues in the world that do away with the need for attorneys (and their big fees) and large minimum capital requirements that make your company a sitting duck for predatory litigation.
Foremost among them is the State of Delaware!
No Attorney Fees!
The Articles of Incorporation required to create the legal beginning of the company is extremely simple and straightforward. The process is so straightforward that you can feel confident using a firm like Inc. Plan (USA) which has assisted thousand of clients in creating their own Delaware corporations.
Do not think, however, that the fact that you can incorporate without incurring large attorney fees means that you are getting a lesser product! In fact its simplicity belies the huge body of corporate law that underlies the protection that you are given by the act of incorporating in the state of Delaware. A big part of the (very stable) economy of Delaware is about incorporation. And it is about protecting corporations, and protecting Delaware’s well deserved reputation as a corporate friendly jurisdiction. This is in contrast with many other domiciles, which view corporations not as resources to be protected but as targets of opportunity to be plundered.
Delaware Corporations = No Capital Requirement!
In keeping with its corporate friendly spirit, there are no minimum capital requirements for Delaware Corporations or LLC’s. This is very good news for an entrepreneur setting a start up off the ground. There are many ways to enhance the launch of a new company that provide a more effective return than paying in capital to meet bureaucratic requirements.
So in a world of options for creating the necessary protection of incorporation, which range from the bureaucratically complex and costly choices of the EU, through less expensive but country risk jurisdictions, why not go with a proven winner? Delaware offers full corporate protection at a small price in a stable, legally friendly jurisdiction! Don’t take our word for it visit the Delaware Secretary of State and find out more.