Providing Delaware incorporation information and general business news you need to know now.
Americans love small businesses! According to a recent survey by the PEW Foundation, 71% of us have a better opinion of small businesses than any other institutions, including religious organizations!
As Delaware formation specialists we are often pointing out the many benefits of using a Delaware corporation. Business startups need to be aware of ways to make their ventures successful, so a recent article describing a new National Bureau of Economic Research working paper from researchers at the prestigious MIT caught our eye. An interesting point from their research is the fact that the study found the odds are 3097:1 of success for a Delaware corporation with a patent and trademark compared to a Massachusetts LLC without intellectual property.
The authors of this working paper have come up with a way to predict growth of a new business. Although it would seem like a very complicated task, finding data to predict success, they were able to identify a few surprisingly simple things):
* Merely registering a company in the business-friendly state of Delaware is indicative of a 40% greater chance of success.
* The company name makes a difference. Keeping the name short, three words or less was associated with success. Companies named after the founder only had a 5% rate of success, compared to ones that were not from a family name.
* An early mention in a newspaper, in this case the Boston Globe business section, gave the business a 30% better chance.
* A 60-times greater chance for success was given to businesses filing for a patent within a year of startup.
* Companies registering as corporation as opposed to a LLC had a five times greater success rate.
Besides these factors, their research predictably indicated that timing of a startup had a large impact on success. Entrepreneurs who were able to start during a growth market had an easier time, while getting the benefit of the boom.
There is a great amount of research indicating the advantages of incorporating both small and large businesses in Delaware. Perhaps that is why more companies are incorporating in Delaware than any other state, including half of all US publicly-traded companies and 60% of Fortune 500 companies!
For assistance with the formation of your next Delaware Corporation please call us at 800 345 2677 ext 6131 or visit www.delawareinc.com/order/
Click here to view the full report
In the first four months of 2015, Harvard Business Services has set new records each month for new companies formed. To continue showing our appreciation were going to extend our $30 discount off our Green Formation Package through the month of May.
The discount will be available starting May 1, 2015 at 12:00am ET and will expire May 31, 2015 at 11:59 ET.
So don’t wait! Simply go to our easy-to-use online order form and enter the word “Green” to apply your discount!
Our Green formation package is the most economical and environmentally friendly way to start a company! The price of $249 is unmatched by anyone in the industry, but the best part is with our direct electronic connection with the state of Delaware we can have the company formed the same-day and email approved documents in 1 to 2 business days. Now that is fast service!
Below is a detailed description of our Green formation package:
We make sure your company name is available to be filed in the state of Delaware.
State fees required for forming a minimum stock corporation or LLC are included in the price.
We take care of everything that's needed to prepare and file your certificate.
We prepare and file the articles for your certificate of incorporation/formation with the state.
Your new company is filed with the state of Delaware on the same day you place your order!
Your first full year of the best Delaware registered agent service is included for free!
After the first year, you’ll pay only $50 per year agent fee. Guaranteed never to increase!
You'll have the official approved documents in 1 to 2 business days.
Free Lifetime Customer Support
Our helpful and experienced staff is happy to assist you throughout the life of your company.
We keep you informed of all Delaware requirements to keep your company in good standing and offer free compliance coaching.
You'll receive a complimentary digital corporate seal featuring your company's name!
Since, 1981 Harvard Business Services, Inc. has helped form more than 125,000 Delaware companies, so remember, when you’re ready to start your business and become your own boss we’ll be ready to assist!
When forming an LLC, Delaware is often the most popular choice. This is due to Delaware’s strong corporate law, structure which is considered by many to be #1. Clients from all over the world contact Harvard Business Services, Inc. to form a Delaware company, despite the fact they will not be operating their business from Delaware. When forming a Delaware LLC, your business is domestic to Delaware and foreign to every other state. When operating a Delaware LLC in Connecticut, clients can register as a foreign entity in their home state of Connecticut.
The process of registering a Delaware LLC as a foreign entity in Connecticut is called foreign qualification. It is the way in which the state of Connecticut grants you permission to operate with a Delaware LLC. Each state has this qualification but each state presents different requirements. Since each state has its own requirements, let Harvard Business Services, Inc. take care of this detail for you. Connecticut, like most states, has an application process and a state fee. Unlike most states, however, Connecticut does not require a Certificate of Good Standing from Delaware. Harvard will prepare the appropriate documentation, email it to you for your signature, and then file the documents directly with Connecticut. Once your application has been approved, Harvard will send you a Certificate of Authority. This document states that your Delaware LLC has acquired the authority to operate in Connecticut. This is a very important, yet often overlooked, step.
Harvard Business Services, Inc. can also act as your Registered Agent in Connecticut for $99 per year.
Once registered in Connecticut, there are annual reporting requirements. The Connecticut annual report is due on the anniversary month of the creation of your foreign qualification. The cost for a foreign LLC's annual report in Connecticut is just $20. The Connecticut Secretary of State will mail a reminder to your Registered Agent in advance of the due date. Your foreign entity maintains three annual responsibilities: it must file a Connecticut annual report, pay the Registered Agent Fee and pay the franchise tax. Your Registered Agent should send reminders to you about these critical Delaware compliance fees.
If you need assistance in registering your Delaware LLC in Connecticut, or have additional questions, please call 1-800-345-2677 Ext 6130 or email firstname.lastname@example.org.
Did you form your Delaware corporation or LLC through Harvard Business Services, Inc? Is Harvard Business Services currently your Delaware registered agent? If the answer is "yes," then you probably already have a digital corporate seal.
The digital corporate seal will include your company name, the date of formation and the type of company, as well as the word "DELAWARE," illustrating that your company was formed in the most prestigious jurisdiction in the world. Just point and click to add your digital company seal, the official signature for your company, on to all important documents. LLCs will often use the digital seal on the operating agreement, membership certificates, banking resolutions, invoices, receipts, et al. Corporations can use the seal on their bylaws, stock certificates, and meeting minutes to make them official.
Contact any of our friendly customer service representatives at Harvard Business Services, Inc. to get your FREE digital company seal today. We can be reached at 1-800-345-2677 Option 1, and we’re ready to help!
Harvard Business Services, Inc. now provides a FREE digital company seal to our clients. Harvard Business Services, Inc. is Delaware's premier company formation service, home of the $50 annual registered agent fee. Harvard Business Services GUARANTEES that your Registered Agent Fee will remain FIXED at $50 per year for the life of your company. If Harvard Business Services, Inc. is NOT your Registered Agent, call us today to switch and get a FREE digital company seal.
Are you self-employed and looking to start a Solo 401(k) retirement plan for the future? 401(k) plans let participants save and invest a portion of their earnings before taxes are taken out. No taxes are paid on the money until it is withdrawn, usually at retirement when the worker’s tax bracket is lower.
If you are an independent contractor, consultant, freelancer, real estate agent, or other self-employed person, the government offers an annual $53,000 tax break that could help secure your retirement. For this Solo 401(k) plan, the business owner wears two hats, employee and employer. Contributions can be made for both, resulting in very high contribution limits. The benefit is even more for married business owners because spouses are the exception to the “solo” or “one worker” rule and can make contributions equal to those of the owner. Using this advantage married couples could put away $106,000 annually, tax-deferred. Solo-k plans are best suited for self-employed workers who want to save as much as possible for retirement, and who make enough to make significant contributions. If, however, the plan is to grow the company and hire employees, it would have to be converted to a full-blown 401(k) plan.
To qualify for a Solo-k an individual must be able to claim self-employed income, but have no full-time employees (except a spouse). However, a person does not need to work full-time in the self-employed capacity. Many times an individual works for an employer, but has another business on the side, making that business eligible for adopting a Solo 401(k). The plan can be adopted by any self-employed business, including a sole proprietorship, limited liability company, partnership, S-Corporation, C-Corporation, etc.
The two basic types of this plan are self-directed, and brokerage based. The brokerage based plans invest in stocks and mutual funds, while the self-directed plans allow the entrepreneur to use retirement funds to make virtually any type of investment on their own. The IRS describes only the types of investments which are prohibited, which are few. Varied options such as real estate, private business investments, precious metals, and loans give the holder many options.
Another advantage of the Solo-k is that it allows a business owner to take out a loan on the retirement account. A participant is allowed to borrow up to 50% of the total value, or $50,000, whichever is less. This loan is tax free and can be used for any reason. (Failure to make payments back can result in taxes and IRS penalties, however.)
There is an additional feature for those 50 years old and over. They can contribute an additional $6,000 beginning this year, often referred to as a “catch-up” feature. So the upper limit in 2015 for a business owner over 50 would be $59,000.
Many people are unaware of this Solo-k plan which allows for self-employed workers to invest a good amount of tax-deferred income, with less hassle to set up than many other retirement plans. It beats traditional corporate 401(k)s in higher savings limits and in the ability to invest in a variety of options.
At Harvard Business Services we feel this would be a great fit for a large portion of our clients. We have formed a Strategic Relationship with Provident Trust Group to assist with the setting up of a Solo 401K, reach out to them directly at 855 279 5981 with any questions.