Are You Operating a Delaware Company in Indiana?

By Devin Scott Monday, July 31, 2017

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 most corporate-friendly state in America many times. 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 foreign qualificationIndiana, 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.

*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.

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