Who Should Start a Company in Delaware

It is safe to assume that vast majority of companies registered in Delaware have no physical connection to the state whatsoever. Many technology companies, as well as companies owned by foreigners, register companies in Delaware in order to enjoy from all the benefits offered by Delaware corporate laws. In other words, if your company is aiming to get funded by angel investors, raise venture capital, and/or grow big to qualify for IPO, you might want to consider registering a Delaware Corporation.

With that being said, owning a Delaware company is not the cheapest option: Franchise Tax for LLC is $250 a year, and corporations pay their annual franchise tax based on a complex formula with the amount of tax ranging from $75 to $180,000 (!) a year.

Then there is a question of nexus – if your business is physically located in another state, and you think that by registering it in Delaware you can escape registration in your state (for example, notoriously expensive California), we have to disappoint you. Even though your business will be organized under the Delaware law, you will still have to foreign qualify it in your state, which in other words means you will have to maintain two entities instead of one.

What if your business has no physical presence in the U.S. (for example you run it from abroad)? Again, Delaware is not a bad choice, but unless you plan to obtain serious investments you might want to consider some cheaper alternatives (such as Wyoming).

Businesses Physically Located in Delaware

If you decided to open a new business that will be based in Delaware you can choose from several options:

Sole Owners

1. Sole Proprietorship: Sole owners of Delaware-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Delaware Secretary of State is necessary, but it is recommended to register a DBA (Doing Business As) name, and if you plan to hire employees then also obtain an EIN.

2. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners’ personal assets. This type of entity is recommended for most small businesses.

By default your LLC will be taxed as “disregarded entity”, meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though – LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in Delaware here.

3. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Delaware you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That’s one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment.

Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person.

Learn more about corporations here, and about the details of incorporating in Delaware here.

Partners

1. General Partnership: Like sole proprietorship, this entity type does not require registration with the Delaware Secretary of State, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register a DBA (Doing Business As) name, and obtain an EIN.

2. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner.

3. Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners.

Keep in mind though – S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead.

4. Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships.

Existing Out-of-State Companies

An existing company registered in another state or country (called “foreign corporation”, “foreign LLC”, etc) looking to conduct business in Delaware might be required to foreign qualify in Delaware. This rule typically applies to companies looking to open a physical branch in Delaware, lease an office or warehouse, hire employees, etc.

Existing Delaware Companies

Companies registered in Delaware enjoy from a wide spectrum of services provided by the Delaware Secretary of State . Such services include but not limited to:

• Amendment
• Dissolution
• Reinstatement
• Certified copies of company documents
• Certificate of Good Standing
• Apostilles

How Can We Help?

Our company specializes in working with state government agencies such as Delaware Secretary of State in order to make your business registration and maintenance easier and smoother. We invite you to browse our website to learn more about our services and prices – and never hesitate to contact us via via phone, chat, or email if you have any questions.

Sole Owners

1. Sole Proprietorship: Sole owners of DC-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with District of Columbia Department of Consumer and Regulatory Affairs is necessary, but it is recommended to register a trade name (DBA), and if you plan to hire employees then also obtain an EIN.

2. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners’ personal assets. This type of entity is recommended for most small businesses.

By default your LLC will be taxed as “disregarded entity”, meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though – LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in DC here.

3. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in DC you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That’s one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment.

Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person.

Learn more about corporations here, and about the details of incorporating in DC here.

Partners

1. General Partnership: Like sole proprietorship, this entity type does not require registration with the District of Columbia Department of Consumer and Regulatory Affairs, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register a trade name (DBA), and obtain an EIN.

2. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner.

3. Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners.

Keep in mind though – S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead.

4. Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships.

Existing Out-of-State Companies

An existing company registered in another state or country (called “foreign corporation”, “foreign LLC”, etc) looking to conduct business in DC might be required to foreign qualify in DC. This rule typically applies to companies looking to open a physical branch in DC, lease an office or warehouse, hire employees, etc.

“Foreign” businesses that do not create “strong nexus” by moving physically to DC might still be required to obtain eTaxpayer Service Center (eTSC) number from District of Columbia Office of Tax and Revenue if selling taxable products or services using local dropshippers.

Existing DC Companies

Companies registered in DC enjoy from a wide spectrum of services provided by the District of Columbia Department of Consumer and Regulatory Affairs and District of Columbia Office of Tax and Revenue. Such services include but not limited to:

• Amendment
• Dissolution
• Reinstatement
• Certified copies of company documents
• Certificate of Good Standing
• Apostilles

How Can We Help?

Our company specializes in working with state government agencies such as District of Columbia Department of Consumer and Regulatory Affairs and District of Columbia Office of Tax and Revenue in order to make your business registration and maintenance easier and smoother. We invite you to browse our website to learn more about our services and prices – and never hesitate to contact us via via phone, chat, or email if you have any questions.

Sole Owners

1. Sole Proprietorship: Sole owners of Connecticut-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Connecticut Secretary of the State is necessary, but it is recommended to register a DBA (Trade Name Certificate), and if you plan to hire employees then also obtain an EIN.

2. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners’ personal assets. This type of entity is recommended for most small businesses.

By default your LLC will be taxed as “disregarded entity”, meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though – LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in Connecticut here.

3. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Connecticut you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That’s one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment.

Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person.

Learn more about corporations here, and about the details of incorporating in Connecticut here.

Partners

General Partnership: Like sole proprietorship, this entity type does not require registration with the Connecticut Secretary of the State, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register a DBA (Trade Name Certificate), and obtain an EIN.

Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner.

Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners.

Keep in mind though – S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead.

Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships.

Existing Out-of-State Companies

An existing company registered in another state or country (called “foreign corporation”, “foreign LLC”, etc) looking to conduct business in Connecticut might be required to foreign qualify in Connecticut. This rule typically applies to companies looking to open a physical branch in Connecticut, lease an office or warehouse, hire employees, etc.

“Foreign” businesses that do not create “strong nexus” by moving physically to Connecticut might still be required to obtain Sales Tax Permit (Resale Number) from Connecticut Department of Revenue Services if selling taxable products or services using local dropshippers.

Existing Connecticut Companies

Companies registered in Connecticut enjoy from a wide spectrum of services provided by the Connecticut Secretary of the State and Connecticut Department of Revenue Services. Such services include but not limited to:

• Amendment
• Dissolution
• Reinstatement
• Certified copies of company documents
• Certificate of Good Standing
• Apostilles

How Can We Help?

Our company specializes in working with state government agencies such as Connecticut Secretary of the State and Connecticut Department of Revenue Services in order to make your business registration and maintenance easier and smoother. We invite you to browse our website to learn more about our services and prices – and never hesitate to contact us via via phone, chat, or email if you have any questions.

Sole Owners

1. Sole Proprietorship: Sole owners of Colorado-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Colorado Secretary of State is necessary, but it is recommended to register a trade name (DBA), and if you plan to hire employees then also obtain an EIN.

2. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners’ personal assets. This type of entity is recommended for most small businesses.

By default your LLC will be taxed as “disregarded entity”, meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though – LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in Colorado here.

3. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Colorado you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That’s one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment.

Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person.

Learn more about corporations here, and about the details of incorporating in Colorado here.

Partners

1. General Partnership: Like sole proprietorship, this entity type does not require registration with the Colorado Secretary of State, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register a trade name (DBA), and obtain an EIN.

2. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner.

3. Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners.

Keep in mind though – S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead.

4. Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships.

Existing Out-of-State Companies

An existing company registered in another state or country (called “foreign corporation”, “foreign LLC”, etc) looking to conduct business in Colorado might be required to foreign qualify in Colorado. This rule typically applies to companies looking to open a physical branch in Colorado, lease an office or warehouse, hire employees, etc.

“Foreign” businesses that do not create “strong nexus” by moving physically to Colorado might still be required to obtain Sales Tax License from Colorado Department of Revenue if selling taxable products or services using local dropshippers.

Existing Colorado Companies

Companies registered in Colorado enjoy from a wide spectrum of services provided by the Colorado Secretary of State and Colorado Department of Revenue. Such services include but not limited to:

• Amendment
• Dissolution
• Reinstatement
• Certified copies of company documents
• Certificate of Good Standing
• Apostilles

How Can We Help?

Our company specializes in working with state government agencies such as Colorado Secretary of State and Colorado Department of Revenue in order to make your business registration and maintenance easier and smoother. We invite you to browse our website to learn more about our services and prices – and never hesitate to contact us via via phone, chat, or email if you have any questions.

Sole Owners

1. Sole Proprietorship: Sole owners of California-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with California Secretary of State is necessary, but it is recommended to register a fictitious business name statement (DBA), and if you plan to hire employees then also obtain an EIN.

2. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners’ personal assets. This type of entity is recommended for most small businesses.

By default your LLC will be taxed as “disregarded entity”, meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though – LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in California here.

3. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in California you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That’s one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment.

Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person.

Learn more about corporations here, and about the details of incorporating in California here.

Partners

1. General Partnership: Like sole proprietorship, this entity type does not require registration with the California Secretary of State, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register a fictitious business name statement (DBA), and obtain an EIN.

2. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner.

3. Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners.Keep in mind though – S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead.

4. Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships.

Existing Out-of-State Companies

An existing company registered in another state or country (called “foreign corporation”, “foreign LLC”, etc) looking to conduct business in California might be required to foreign qualify in California. This rule typically applies to companies looking to open a physical branch in California, lease an office or warehouse, hire employees, etc.

“Foreign” businesses that do not create “strong nexus” by moving physically to California might still be required to obtain Seller’ s Permit from California Board of Equalization if selling taxable products or services using local dropshippers.

Existing California Companies

Companies registered in California enjoy from a wide spectrum of services provided by the California Secretary of State and California Board of Equalization. Such services include but not limited to:

• Amendment
• Dissolution
• Reinstatement
• Certified copies of company documents
• Certificate of Good Standing
• Apostilles

How Can We Help?

Our company specializes in working with state government agencies such as California Secretary of State and California Board of Equalization in order to make your business registration and maintenance easier and smoother. We invite you to browse our website to learn more about our services and prices – and never hesitate to contact us via via phone, chat, or email if you have any questions.

Sole Owners

1. Sole Proprietorship: Sole owners of Arkansas-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Arkansas Secretary of State is necessary, but it is recommended to register an assumed name (DBA), and if you plan to hire employees then also obtain an EIN.

2. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners’ personal assets. This type of entity is recommended for most small businesses.

By default your LLC will be taxed as “disregarded entity”, meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though – LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in Arkansas here.

3. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Arkansas you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That’s one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment.

Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person.

Learn more about corporations here, and about the details of incorporating in Arkansas here.

Partners

1. General Partnership: Like sole proprietorship, this entity type does not require registration with the Arkansas Secretary of State, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register an assumed name (DBA), and obtain an EIN.

2. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner.

3. Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners.

Keep in mind though – S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead.

4. Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships.

Existing Out-of-State Companies

An existing company registered in another state or country (called “foreign corporation”, “foreign LLC”, etc) looking to conduct business in Arkansas might be required to foreign qualify in Arkansas. This rule typically applies to companies looking to open a physical branch in Arkansas, lease an office or warehouse, hire employees, etc.

“Foreign” businesses that do not create “strong nexus” by moving physically to Arkansas might still be required to obtain Sales Tax ID from Arkansas Department of Finance and Administration if selling taxable products or services using local dropshippers.

Existing Arkansas Companies

Companies registered in Arkansas enjoy from a wide spectrum of services provided by the Arkansas Secretary of State and Arkansas Department of Finance and Administration. Such services include but not limited to:

• Amendment
• Dissolution
• Reinstatement
• Certified copies of company documents
• Certificate of Good Standing
• Apostilles

How Can We Help?

Our company specializes in working with state government agencies such as Arkansas Secretary of State and Arkansas Department of Finance and Administration in order to make your business registration and maintenance easier and smoother. We invite you to browse our website to learn more about our services and prices – and never hesitate to contact us via via phone, chat, or email if you have any questions.

Sole Owners

1. Sole Proprietorship: Sole owners of Arizona-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Arizona Corporation Commission is necessary, but it is recommended to register a trade name (DBA), and if you plan to hire employees then also obtain an EIN.

2. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners’ personal assets. This type of entity is recommended for most small businesses.

By default your LLC will be taxed as “disregarded entity”, meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though – LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in Arizona here.

3. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Arizona you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That’s one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment.

Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person.

Learn more about corporations here, and about the details of incorporating in Arizona here.

Partners

1. General Partnership: Like sole proprietorship, this entity type does not require registration with the Arizona Corporation Commission, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register a trade name (DBA), and obtain an EIN.

2. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner.

3. Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners.

Keep in mind though – S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead.

4. Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships.

Existing Out-of-State Companies

An existing company registered in another state or country (called “foreign corporation”, “foreign LLC”, etc) looking to conduct business in Arizona might be required to foreign qualify in Arizona. This rule typically applies to companies looking to open a physical branch in Arizona, lease an office or warehouse, hire employees, etc.

“Foreign” businesses that do not create “strong nexus” by moving physically to Arizona might still be required to obtain Transaction Privilege Tax (TPT) License (commonly referred to as a sales tax, resale, wholesale, vendor or tax license) from Arizona Department of Revenue if selling taxable products or services using local dropshippers.

Existing Arizona Companies

Companies registered in Arizona enjoy from a wide spectrum of services provided by the Arizona Corporation Commission and Arizona Department of Revenue. Such services include but not limited to:

• Amendment
• Dissolution
• Reinstatement
• Certified copies of company documents
• Certificate of Good Standing
• Apostilles

How Can We Help?

Our company specializes in working with state government agencies such as Arizona Corporation Commission and Arizona Department of Revenue in order to make your business registration and maintenance easier and smoother. We invite you to browse our website to learn more about our services and prices – and never hesitate to contact us via via phone, chat, or email if you have any questions.

Sole Owners

1. Sole Proprietorship: Sole owners of Alaska-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Alaska Department of Commerce, Community and Economic Development is necessary, but it is recommended to register a business name (DBA), and if you plan to hire employees then also obtain an EIN.

2. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners’ personal assets. This type of entity is recommended for most small businesses.

By default your LLC will be taxed as “disregarded entity”, meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though – LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in Alaska here.

3. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Alaska you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That’s one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment.

Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person.

Learn more about corporations here, and about the details of incorporating in Alaska here.

Partners

1. General Partnership: Like sole proprietorship, this entity type does not require registration with the Alaska Department of Commerce, Community and Economic Development, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register a business name (DBA), and obtain an EIN.

2. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner.

3. Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners.

Keep in mind though – S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead.

4. Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships.

Existing Out-of-State Companies

An existing company registered in another state or country (called “foreign corporation”, “foreign LLC”, etc) looking to conduct business in Alaska might be required to foreign qualify in Alaska. This rule typically applies to companies looking to open a physical branch in Alaska, lease an office or warehouse, hire employees, etc.

Existing Alaska Companies

Companies registered in Alaska enjoy from a wide spectrum of services provided by the Alaska Department of Commerce, Community and Economic Development . Such services include but not limited to:

• Amendment
• Dissolution
• Reinstatement
• Certified copies of company documents
• Certificate of Good Standing
• Apostilles

How Can We Help?

Our company specializes in working with state government agencies such as Alaska Department of Commerce, Community and Economic Development in order to make your business registration and maintenance easier and smoother. We invite you to browse our website to learn more about our services and prices – and never hesitate to contact us via via phone, chat, or email if you have any questions.

Sole Owners

1. Sole Proprietorship: Sole owners of Alabama-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Alabama Secretary of State is necessary, but it is recommended to register a trade name (DBA), and if you plan to hire employees then also obtain an EIN, HERE.

2. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners’ personal assets. This type of entity is recommended for most small businesses.

By default your LLC will be taxed as “disregarded entity”, meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though – LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in Alabama here.

3. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Alabama you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That’s one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment.

Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person.

Learn more about corporations here, and about the details of incorporating in Alabama here.

Partners

1. General Partnership: Like sole proprietorship, this entity type does not require registration with the Alabama Secretary of State, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register a trade name (DBA), and obtain an EIN.

2. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner.

3. Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners.

Keep in mind though – S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead.

4. Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships.

Existing Out-of-State Companies

An existing company registered in another state or country (called “foreign corporation”, “foreign LLC”, etc) looking to conduct business in Alabama might be required to foreign qualify in Alabama. This rule typically applies to companies looking to open a physical branch in Alabama, lease an office or warehouse, hire employees, etc.

“Foreign” businesses that do not create “strong nexus” by moving physically to Alabama might still be required to obtain Sales & Use Tax Certificate from Alabama Department of Revenue if selling taxable products or services using local dropshippers.

Existing Alabama Companies

Companies registered in Alabama enjoy from a wide spectrum of services provided by the Alabama Secretary of State and Alabama Department of Revenue. Such services include but not limited to:

• Amendment
• Dissolution
• Reinstatement
• Certified copies of company documents
• Certificate of Good Standing
• Apostilles

How Can We Help?

Our company specializes in working with state government agencies such as Alabama Secretary of State and Alabama Department of Revenue in order to make your business registration and maintenance easier and smoother. We invite you to browse our website to learn more about our services and prices – and never hesitate to contact us via via phone, chat, or email if you have any questions.

Sole Owners

1. Sole Proprietorship: Sole owners of Oregon-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Oregon Secretary of State is necessary, but it is recommended to register an Assumed Business Name, and if you plan to hire employees then also obtain an EIN.

2. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners’ personal assets. This type of entity is recommended for most small businesses.

By default your LLC will be taxed as “disregarded entity”, meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though – LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in Oregon here.

3. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Oregon you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That’s one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment.

Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person.

Learn more about corporations here, and about the details of incorporating in Oregon here.

Partners

1. General Partnership: Like sole proprietorship, this entity type does not require registration with the Oregon Secretary of State, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register an Assumed Business Name, and obtain an EIN.

2. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner.

3. Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners.

Keep in mind though – S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead.

4. Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships.

Existing Out-of-State Companies

An existing company registered in another state or country (called “foreign corporation”, “foreign LLC”, etc) looking to conduct business in Oregon might be required to foreign qualify in Oregon. This rule typically applies to companies looking to open a physical branch in Oregon, lease an office or warehouse, hire employees, etc.

Existing Oregon Companies

Companies registered in Oregon enjoy from a wide spectrum of services provided by the Oregon Secretary of State . Such services include but not limited to:

• Amendment
• Dissolution
• Reinstatement
• Certified copies of company documents
• Certificate of Good Standing
• Apostilles

How Can We Help?

Our company specializes in working with state government agencies such as Oregon Secretary of State in order to make your business registration and maintenance easier and smoother. We invite you to browse our website to learn more about our services and prices – and never hesitate to contact us via via phone, chat, or email if you have any questions.