· Delaware is the most preferred destination for forming LLCs and corporations

· Approximately 93% of all 2021 IPOs in the US were registered in Delaware, with no significant legal changes in 2022 and 2023.

· The fundamental requirement for all corporations is to have a Delaware registered agent

Recent statistics released by the Delaware Division of Corporations show that the First State is a top attraction for businesses, nationally and internationally. Even in the pandemic year 2020, the 249,427 new entities were excellent, but the 34% increase to 336,407 entities in 2021 was even more impressive. All kinds of corporations are attracted to the state, from small family LLCs to big corporations. Delaware currently hosts over 66% of Fortune 500 companies.

The surprising fact is that Delaware is the second smallest state in the USA, and its population is slightly over one million. Yet, the number of registered business entities is 1.8 million. 36.9% of these are LLCs, with 20.8% being corporations.

What To Look for In a Delaware
What To Look for In a Delaware Registered Agent Pixabay

Why Delaware?

Delaware is preferred for several reasons, one being the state'. Delaware is considered the corporate capital of the United States, with a long history of business-friendly courts and laws. It also does not impose a state corporate income tax on out-of-state companies, making it an attractive state for businesses that do not operate within Delaware. Another major reason is the level of confidentiality business entities can enjoy here. For instance, the information of members, directors or shareholders of an LLC or corporation is not a requirement for filing, nor does it appear on public record.

How do you pick the right registered Delaware agent?

The one fundamental requirement for all Delaware companies is to have a registered agent in Delaware.This resource provides more information on who can be a Delaware agent and why you need one. In picking a Delaware registered agent, consider the following qualities;

1. Availability

Ensure that the registered agent is available during regular business hours to receive and forward important legal and tax documents on your behalf. They should also be reliable and easy to reach via phone or email.

2. Location

Consider the location of the registered agent's office to ensure that it is easily accessible for you and any legal proceedings. The law also requires the agent to have a physical address in Delaware.

3. Reputation

Research the registered agent's reputation and ensure they have a good track record of providing reliable and efficient services. You should also consider their professionalism in how they handle your documents, their speed in making the files, how resourceful they are, and the level of discreetness they exercise. It is also beneficial if your agent has excellent relationships in the legal community and with the Delaware Division of Corporations.

4. Price

It does cost to use the services of a registered agent in Delaware. How much you pay will depend on the range of services you seek and the agent's quality. The average cost is placed at $60 -$300 per year. Compare prices from different registered agents to find one that fits your budget but also focus on the value you are receiving for the fees they are charging. Avoid ones that have hidden fees not communicated upfront.

5. Experience

Experience is integral because of the broad extensive corporate law precedents in Delaware. Choose a registered agent with experience in Delaware, as they will better understand the state's laws and regulations. They have also built a portfolio you can easily gauge their reviews and have had enough time to build helpful ties and connections.

6. Customer service

Consider the level of customer service the registered agent offers, such as their responsiveness and willingness to answer questions. They should be transparent and excellent at communicating comprehensively and clearly. Look at how they answer your questions and any added service they offer without charging as a demonstration that they have your interests at heart.

7. Additional Services

Look for registered agents that offer additional services, such as annual report filing and registered office services, legal services, and others, so that all your affairs are conducted from one point. It saves your time and effort and is cost-effective while also ensuring discreetness, as not many people will be privy to your arrangements.

Delaware has a reputation as one of the best states for businesses, and with good reason. It is not only a tax haven but also has friendly its corporation law regarded as the most friendly and flexible in the country. The one requirement is to have a registered agent and given their critical role, you should pick the right one. Availability, professionalism, experience, and transparency are some qualities you should look for in your selection. Find the right registered agent, and you will enjoy the advantages the first state offers businesses.

© 2024 Latin Times. All rights reserved. Do not reproduce without permission.