Annual Report from the Delaware Division of Corporations
Filed Under: Delaware, Trend Report
Tags: Delaware Division of Corporations, Secretary of State
Delaware’s Secretary of State recently put out a report recapping the 2008 year as a whole for the Division of Corporations.
Some of the notable statistics are:
In Autumn 2008 there was one domestic entity per Delawarean
Delaware remained the chosen home of 64% of Fortune 500 companies
67% of the new formations were LLC’s
24% were Corporations
9% were either a LLP/LP or a Trust
121,628 new Delaware entities were created in 2008
40,154 less Delaware entities we’re created in 2008 versus 2007
882,000 active entities are in Delaware
Even with the decrease of over 40,000 entities from one year to another, Delaware Division of Corporations is still a driving force in generating income for the State of Delaware. Roughly 30% of the State of Delaware’s income as a whole comes from the Secretary of State Division of Corporations office.
Delaware is not immune to the economic downturn other states of the nation are facing. To combat a huge budget deficit, many of the fees associated with an amendment, renewal, Good Standing Certificate, Certified Copy, Apostille have gone up drastically. The late fee for all Delaware Franchise tax payments has increased from $100 to $200.
One thing that will not change is Delaware’s reputation for having the best corporate law structure in the nation!
To view the entire report click here: http://corp.delaware.gov/2008AR.pdf
Is Your Company Name No Longer Right? Change it!
Filed Under: 101
Tags: Company Name, Delaware Division of Corporations
Is your company name outdated, or does it no longer reflect the nature of your business? Why not officially change your company’s name? Often, clients feel that a new company must be filed or that changing the name will be extremely costly and time consuming. Not so, your company name can be officially changed quickly and easily. In fact, one of the most common filings we see clients make is the “name amendment.”
In some cases, the original name may have been too specific such as Bob’s Deck & Patio LLC, when Bob began doing more general contracting and home building. In other cases a company may be redesigning its total image and the centerpiece is the new name. Instead of filing a new company these clients simply call us. We prepare and file a Certificate of Amendment to the Certificate of Formation (for LLCs) or Certificate of Incorporation (for Corporations) with the Secretary of State’s office. This filing officially changes the name immediately, or on an “effective date” as selected by the client.
Filing a name amendment versus filing a new company will allow you to keep the history that goes along with your original filing. Assets don’t change hands, liabilities remain the same, all contracts remain in force, all accounting and tax records remain the same. The name will change but everything else will remain the same. This can save the hassle of opening new bank accounts, obtaining a new EIN, and creating entirely new internal documents. The formation date of the company remains the date of original formation. This is an important consideration for many entrepreneurs.
So, once you decide that filing a name amendment is the best decision for your company, what do you do to make it happen?
The first step in the name amendment process is choosing the name. This can be a tough decision. For assistance in picking out the right name Check out this HBS blog post by Paul Sponaugle entitled Three Easy Steps for Naming Your Company in Delaware.
To make sure your company name is available in Delaware, take advantage of Harvard Business Services free name check service, https://www.delawareinc.com/namecheck. After the name is selected and reserved with the Division of Corporations, a Certificate of Amendment will have to be prepared and must be signed by an authorized officer of the company. Next, the Certificate needs to be filed with the State, and the name will officially change as of the date and time the document is filed, or at some specified date known as the “effective date” after the file date. Company names cannot be effective before the filing date of the name amendment. The State of Delaware typically takes 3-5 business days to return Certified Copies of the filing documents. Quick and Easy!
Once the amendment is filed, clients need to make sure that everyone is aware of the new name for the company. The easy way to go about informing everyone is to make a list. Write down government agencies that the company works with, clients, vendors, and banks and inform them of the new name. Notify the Post Office, UPS, Federal Express Corporation and DHL as well as any other companies that your company deals with. Some of the bureaucracies involved may have a form to fill out and return with a copy of the approved Certificate of Amendment. The IRS allows this change to be made rather easily. Simply send a letter to the address IRS office where the return was filed for the previous year. The letter needs to state the new name of the company, the old name, EIN (Employers ID Number) the signature of a corporate officer.
Finally, go forward and prosper with the new company name that properly reflects the business you have worked so hard to build!
Should you require assistance in the filing of a name amendment, or any type of amendment, feel free to give Brett a call at 800-345-2677 or send an email to brett@delawareinc.com.
Forming My New Company…DIY or NOT?
Filed Under: Delaware, INC Knowledge
Tags: Delaware, Delaware Division of Corporations
To Inc. or not to Inc.? – that is the question. Or should I say – to Inc. myself, or have a lawyer or a professional service handle the task for me? Logistically speaking, there are pros and cons to each and we shall examine them here.
At Harvard Business Services, we serve as a Delaware Registered Agent to more than 30,000 companies, most of which we’ve formed and filed on behalf of our clients. However, we also serve as Registered Agent to thousands of clients each year who undertake the filing themselves with little or no professional help – true “Self-Filers.”
The fact that we offer the lowest Annual Registered Fee in Delaware ($50 ) makes us very popular among both of these groups, and it’s even more convincing once you figure out the three-year cost of Harvard vs. other agents. At Harvard, we’ve been guaranteeing a fixed agent fee of $50 per year for almost 30 years. A lot of other agents start out at a low fee and then jack your rate up the second year and every year thereafter. Ask them about it if you’re comparing prices.
Obviously, those in the hands of a professional will have a greater level of confidence than those who are on their own. There’s nothing like knowing that a professional is taking care of everything for you, especially if this is your first time forming a company. But let’s look at three practical matters and compare self filing to using Harvard’s formation service: Cost, Speed and Completeness.
COST:
Self-Filers are incurring less expense through the process; since any professional will charge a fee for their expertise. From our experience, filing through an attorney will typically range from $500 to $2,500. Harvard’s services start at $329 and go up to $599 for express overnight service. Filing yourself will cost you the filing fees ($90), the first year’s agent fee ($50 – $149), the cost of a corporate seal ($40) (some banks require them for opening an account) and any fed ex or mail service of filing the documents. Self-filers will prepare their own Certificate of Formation and make several phone calls to government offices before accomplishing the filing. Depending on how you value your time, you’ll save a couple of bucks by self filing.
SPEED:
Self-filers can expect the approval from the Delaware Division of Corporations within a two week period and receipt of their documents within 3 weeks, on the average. Harvard files every company on a SAME DAY basis. You’ll have your filed scanned documents by email within two business days, and your seal will arrive about the same time. If you were to request same day filing service when self-filing, Delaware would be happy to provide it, for an extra $100. This extra fee would wipe out most of the cost savings of self-filing. So, if speed is a consideration, the costs are about the same.
COMPLETENESS:
Some banks, car dealers and real estate agents will require a company to use their seal on official documents and sales contracts. The Company Seal is the signature stamp for your company. You’ll need one sooner or later. A fair value for such an item is around $40 for a seal of comparable quality. Once you throw that in, you’re better off having Harvard handle everything for you.
For almost 30 years, Harvard has been filing corporations and LLCs for clients from all across the USA and all around the world. We know what’s needed to get the documents quickly through the approval process and we follow your documents electronically to make sure they don’t get delayed. If the self-filer makes a mistake in his documents the State will put a hold on the application and the client will be delayed or back at square one.
As a final thought, consider one other thing. One of the most popular reasons that clients file Delaware LLCs is for the benefit of anonymity. When we prepare and file your documents, we sign the certificate and your identity remains undisclosed. However, if you self-file, you will be required to offer your name and address for public record and forfeit anonymity.
So, when considering home repairs; DIY may save you $$$…but when considering the foundation of your new business….maybe not so much. You usually get what you pay for. At Harvard, you get so much more!
Delaware is #1
Filed Under: Delaware
Tags: Delaware, Delaware Division of Corporations, U.S. Chamber of Commerce, United States Chamber Institute for Legal Reform
Every year the U.S. Chamber of Commerce ranks the 50 states for the corporate law structure each has established. Delaware is unique in that it ranks #1 for the 7th year in a row in a survey generated by the United States Chamber Institute for Legal Reform. The survey polled judges, attorneys, professors and others for opinions on which state offered the best structure. Many states that are supposedly “corporate friendly” such as Nevada, are buried deep in the list and continue to decline year after year, while Delaware flourishes. The residents of the State of Delaware are grateful for the strong corporate law structure their state has created because it benefits each and every resident. Almost one third of Delaware’s income can be attributed to the Division of Corporations. This strong corporate law structure protects individuals behind the company, which is why money is generated from people around the world looking at Delaware to incorporate. This revenue even enables Delaware to be one of the few states without a sales tax! The State of Delaware will continue to keep the laws on the cutting edge through consistent judgments and by keeping a reasonable, fair legal environment for the corporate entities.
To view the most recent Harris Poll click here: http://www.instituteforlegalreform.com/component/ilr_harris_poll/30/lawsuitclimate/1.html
DE Appoints A New Secretary of State
Filed Under: HBS Announcements
Tags: Delaware, Delaware Division of Corporations, Secretary of State
On January 29, 2009, Delaware Governor Jack Markell appointed Jeffrey W. Bullock as new Delaware Secretary of State. The Secretary of State oversees the Delaware Division of Corporations.
See: http://corp.delaware.gov/corpsosbio.shtml
