Congratulations to all the Graduates of 2010! So, now you’re looking for a job in your field of study or your trying to decide what you want to do in life. I’ve got a great idea, have you ever thought about starting your own company and being your own boss? It could be your fastest route to success. Does this idea sound interesting, but are you not sure how to get started, where to get started or what type of company you need?…Or maybe you think it might be too complicated or cumbersome.

Three words: Harvard Business Services.

For almost 30 years HBS has been forming and filing companies for entrepreneurs like you all over the world. We will make the incorporating process so easy and painless that in less than ten minutes you will officially have your own company. Below are a few answers to some FAQs.

How easy it is form a company in Delaware?

The hardest question we’re going to ask you is what you want to call the company. After that we will explain your options so you can decide between an LLC and an Incorporation. All we need is your contact information and payment. No signatures and No passports are required.

Is any of my contact information available for public record?

None of your contact information is available for public record and no one will know who is behind this company as we will file your company anonymously and we will not sell or release your information unless legally obligated to do so.

Do I need a physical address in Delaware or have to open a bank account in Delaware?

All you need is a Delaware Registered Agent like Harvard Business Services, Inc. No physical address is required in Delaware as HBS will be your Registered Agent to receive and forward service of process and other government documents, such as franchise tax reports, and notices. It is a legal requirement to have a Delaware Registered Agent.

Your company’s bank account can be opened anywhere in the world and is not required to be opened in Delaware.

Are there any taxes in Delaware or annual fees?

There is no sales tax in Delaware, there is no state income tax for corporations that operate outside of the State of Delaware and there is no inheritance tax. To maintain your company in Delaware there are two annual fees. The annual Franchise Tax is simply what you pay the State of Delaware for the right and privilege of owning a Delaware company and our annual Registered Agent fee – the lowest in the industry — is only $50 per year.

Does Delaware need to know the nature of business or where you are conducting business?

Delaware doesn’t need to know the nature of business or where you are conducting business. With a Delaware company you can operate business lawfully all over the world.

Graduates this year will not find a friendly market for jobs, yet opportunity is everywhere. Many successful entrepreneurs became mega-rich because they improved an industry they knew well. They followed their instincts. They invented something new or better than anyone else had ever thought of, so maybe you should consider forming your own company instead of looking for a job.

You could have the next million dollar idea such as the original whiz kids like Bill Gates or Steve Jobs. Put your own spin on success and maybe you will make a lot of money along the way like these folks did. For a list of successful young millionaires click HERE.

Want more information on “Why Delaware?” click HERE.

Want to know what makes Delaware so appealing? click HERE. 

Ready to start your own business? To get started click HERE or call 800-345-CORP (2677).

Structuring and operating a business is a complex challenge under the best of circumstances. When family members are part of the equation, the complexity multiplies many times. On the other hand, some of the world’s most respected brand names today started out generations ago as family businesses. The LLC in particular gives you the flexibility to structure the business in a way that takes these complex variables into account. In addition, the corporation or Limited Liability Company creates a wall of separation between your personal assets and the functions of your family business.

As owners or participants in a business, family members must confront a range of issues:

• Which family members “own” the business now?
• Which family members contribute the most value to the business?
• As the business grows, how will its ownership and management evolve?
• How will ownership transition smoothly and equitably to the next generation and to future generations?

Benefits of Incorporating Your Family Business in Delaware

• Limited liability
• Asset protection
  • Homesteading & Insurance
  • Delaware Family Limited Partnerships
  • Delaware Corporations and Limited Liability Companies
  • International Corporations
  • Delaware Trusts
  • International Trusts
• Offsets inadequate insurance
• Pass-through taxation (with S-Corp and LLC)
• Business deductions for losses and expenses
• Enhanced credibility with existing and potential customers
• Investor attraction

Many family businesses today are taking advantage of Delaware’s flexible LLC and close corporation laws. The flexibility of the Delaware LLC stems the way it allows business owners to establish what is known as a private operating agreement. This agreement is similar to a contract between family members. The contract sets forth the company’s governance structure and does not have to be filed with the State of Delaware; the arrangement is the personal, private business of you and your family.

In the operating agreement, you determine the rights and privileges of the members. Among a wide array of arrangements you can set up, the agreement can identify and separate owners from managers, define compensation arrangements, and mandate what will happen in the event one of the principals retires or dies.

A Delaware LLC can even allow for different classes of members: those who run the company, those who are employed by it, children of family members, and future generations. At the same time, a Delaware LLC provides your family with the benefits of pass-through taxation and limited liability.

The Delaware close corporation is meant for tight-knit groups such as a family. Its structure makes it very difficult for a (family) shareholder to transfer ownership to someone outside the family without the consent of the other family members. This is a way to ensure that business remains in the family as long as its members want it to. And, if the close corporation elects Subchapter S status with the IRS, it also enjoys the benefits of pass-through taxation and limited liability.

LLCs are a good choice to hold the assets because they are tax-free companies with strong liability protection. And, if they are set up properly, you won’t need to file separate tax returns for each LLC, which saves time and money. The family home is a personal asset. For further protection, your home should be homesteaded and insured. Homestead laws vary from state to state, so be sure to check with a local lawyer about the rules that govern your state’s homestead protection. In some states, you will need to register to be covered; in other states, there maybe a limit on the value you can protect.

If there is a family farm involved, protect it by placing it in a Family Limited Partnership (FLP). The FLP will allow you to maintain control, but will spread out the legal ownership. If you are sued personally, the farm won’t be sold to satisfy a judgment against you. In addition to being the first step in estate planning, Family limited Partnerships are also great asset protection plans.