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When it comes to starting a company, Delaware is undoubtedly the Incorporation Capital of the World. Business owners from all over the world prefer to form Delaware LLCs or corporations so they may operate under Delaware’s corporate law structure.
Delaware has been ranked the number one most corporate-friendly state in America for ten years in a row. Delaware is known for flexible structuring, fair laws and extra quick service.
Another big benefit is the Delaware Court of Chancery, which contributes to the reason why 65% of Fortune 500 companies and over half of all U.S. publicly traded companies are incorporated in Delaware. There are, however, several other reasons as to why business owners choose to incorporate in Delaware rather than any other state.
By forming a company in Delaware, your business is domestic to Delaware and foreign to every other state. If you want to operate a Delaware company in Indiana, the next step after incorporating your company in Delaware is to register it as a foreign entity in Indiana. This is usually the case regardless of whether business owners have a corporation or an LLC in Delaware.
You will need to file for Foreign Qualification regardless of the nature of your business or if you are operating an online businesses. Foreign Qualification is the process in which the state of Indiana gives you the authority to operate in that state with your Delaware company.
Indiana, like most states, has an application process, a state fee and also requires a Certificate of Good Standing from Delaware. Indiana will also require a Registered Agent in Indiana for the purpose of receiving service of process, which we can provide for you.
Once your Delaware company is registered in Indiana as a foreign entity, you will be responsible for staying compliant and current on your company’s annual fees in Indiana as well as Delaware.
Delaware’s annual Franchise Tax is $300 per year for an LLC and a minimum of $225 per year for a corporation, and that will go up slightly next year. Indiana’s Business Entity Report costs $22.40 online and $30 by mail, and is due every other year.
If you would like assistance registering your Delaware company to do business in Indiana, or have any questions regarding Foreign Qualification in the state of Indiana, please call us at 1-800-345-2677 or email me.
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.