The incorporation is the process to form a business entity in the United States. The founders will create a new entity to separate the liability from them as individuals. Protecting personal assets, and giving credibility to the enterprise are several value adds to incorporate in the United States.
The meaning of a par value Par value is the minimum issue price for a share of stock. Most founders who incorporate a Delaware C Corp to raise venture capital prefer to choose low par value since it has an effect on the annual franchise fee amount due for Delaware corporations. Wyoming companies don’t have to pay a franchise fee.
To calculate the franchise fee for your corporation in Delaware, you can use one of the following two methods that are detailed below (information is available at https://corp.delaware.gov/frtaxcalc/). Use the method that results in the lesser fee.
Founders should ensure that their company name isn't the same, in their state, as that of an existing corporation, partnership, or LLC. If it is identical or similar, the founders need to choose another name.
Once you have a business name idea, you can go to Firstbase and complete the online application. Firstbase validates that your specific company name is available in the state you wish to incorporate. The Customer team will work with you to find alternatives and suitable variations if your exact business name is unavailable. You can use the Free Business Name Check tool to explore ideas.
Firstbase offers resources and partnerships that can help trademark your company name and/or brand in the United States.
Simply described, shareholders are owners of a corporation and members are owners of limited liability companies (LLCs). Although there are some overlaps, generally speaking these are terms for owners of your legal entity, depending on the type.
Shareholders are individuals who own shares of a private or public company. Shareholders can be an individual, a company, or another institution. Shareholders (or stockholders) can receive dividends from the shares and a portion of the company’s profits. Shareholders are not liable for the debts of the company.
Members are included in the formation documents of the LLC. Members of the LLC share the risk of liability equally with the other registered members. Members of an LLC may or may not be a part of the operations of the company.
To develop a United States business, there are no US federal or state regulations demanding a shareholder or LLC member to be a US citizen or green card holder. Thus, a foreigner can own shares of a US corporation or be a member of an LLC.
Delaware and Wyoming are renowned for their business-friendly legislation. They usually have low fees, and more organizational freedom. Delaware has an established body of case law and an innovative perception of social enterprises. For instance, the state created a Public Benefit Corporation (B-Corporation) as a new form of a corporate structure.
The decision about where to incorporate involves the analysis of the business model, the corporate structure, and the entrepreneur’s goals. Thus, a corporate lawyer can find the best state law for a particular enterprise. Firstbase.io specifically incorporates LLCs and Corporations in Wyoming and Delaware due to the flexibility and low-cost for starting a business. You can find a more detailed breakdown below:
Choosing Wyoming to incorporate
The information contained on this guide, whether free or paid, is for educational and informational purposes only. The Company assumes no responsibility for errors or omissions in the contents of the guide. The information contained on this guide is not intended as, and shall not be understood or construed as, legal or tax advice. The information contained on this guide is not a substitute for legal advice from a licensed attorney who is aware of the facts and circumstances of your individual situation. We have done our best to ensure that the information provided on this guide is accurate, providing valuable information. Regardless of anything to the contrary, nothing available on or through this guide should be understood as a recommendation that you should not consult with an attorney to address your particular information. The Company expressly recommends that you seek advice from an attorney prior to taking any actions. Neither the Company nor any of its employees, owners, or contributors shall be held liable or responsible for any errors or omissions on this guide or for any damage you may suffer as a result of failing to seek competent legal advice from a licensed attorney who is familiar with your situation.