Menu X Menu
How may we help you?

1-800-345-2677

Learning Center
Companies Served Since 1981
1 3 4 0 2 6

Corporation FAQs

Learn About Incorporating in Delaware

As we help our customers reach informed decisions about forming business entities, we find that some questions about incorporating arise more often than others. Below is a list of Frequently Asked Questions. If you don't see your question answered here, our business formation specialists are available to help via phone at 800-345-2677 or live chat.

Learn About Incorporating in Delaware

Can a corporation own another corporation?

Yes. A corporation can own another corporation and can purchase it using the first corporation's stock. This is yet another advantage of owning a Delaware corporation. In fact, under the new IRS regulations, even subchapter S corporations can own and control major portions of affiliated companies.

 

Can I issue preferred stock with non-voting rights?

Yes. Preferred stock is a popular way to give investors what they want and still retain voting control of the company. Preferred stock is much cheaper and easier to issue upon formation, so consider getting it right from the start if you're planning to raise money.

 

Do I get a discount if I incorporate more than one company?

Yes. Only Harvard Business Services, Inc. gives you a 5% discount on the formation of every new LLC or corporation after your initial filing, regardless of when you form them. If you're a current client, you must form the new company in your own name and at your own address in order to be eligible for this discount. Call 1-800-345-2677 for more details.

 

Does my corporate bank account have to be in Delaware?

No. You can form and operate your corporation under Delaware law without transacting business in Delaware, maintaining a bank account in Delaware or even visiting Delaware. (Read more on why you should choose Delaware for your incorporation needs.)

 

Have your forms been reviewed by attorneys?

Yes. We retain as our company counsel a prestigious and widely acclaimed Wilmington, Delaware law firm that specializes in Delaware corporation law. This is an important consideration. Your corporation or LLC is defined by the wording in the Certificate of Incorporation and the bylaws. Delaware law allows wording in corporate papers that offers added flexibility and protection to a corporation or LLC. Many filing services use generic or boilerplate wording in their forms that don't take full advantage of the benefits of Delaware's corporate law.

Our law firm writes, reads or reviews all of Harvard's written materials, with the specific mission of drafting our corporate papers to ensure both the validity and modernity of the language.

 

How is forming a corporation or LLC important for attracting investors?

Investors generally want two things: a suitable return on their money and tangible, legal evidence of their investment (their part of ownership) in your enterprise. Stock certificates are the only way to accomplish the latter. Experienced and savvy investors are far less likely to invest in an abstract project or idea without the stock ownership structure in place. If you approach or are approached by an investor, having a stock ownership structure in place and a prepared business plan vastly increase your chances of gaining investors.

 

How many shares should I get in my company?

Only get as many shares as you need. Your annual Delaware Franchise Taxes will be based on the number of shares you have. (You can read more about understanding your company's stock.)

 

In my corporate kit, is one stock certificate worth one share of stock?

No. Your stock certificates are printed with your company name and the total authorized shares in your company. You choose the name of the stockholder and the number of shares the certificate represents and enter that information on the certificate.

 

Is your company affiliated with Harvard University?

No, we are not affiliated with Harvard University.

 

One or more of your competitors offers express service for a little less than the cost of your first-class service. What is the difference?

The most significant difference is their packages are not actually packages because they don't include the extras that wind up costing a lot of additional money. Harvard's packages include everything they say they include. There are no hidden fees or surprises. The wording, the claims and the promises we make about our services are straightforward, easy to understand and 100 percent transparent. If a deal from one of our competitors sounds too good to be true, it probably is.

 

What are the laws in Delaware governing my choice of a company name?

The name of your corporation or LLC must have an approved corporate ending (i.e., a suffix). The following corporate endings are available to Delaware corporations: Association, Club, Company, Corporation, Fund, Foundation, Incorporated, Institute, Society, Syndicate or Limited, or one of these abbreviations: Co., Corp., Inc., or LTD. Your corporate name cannot have the word "Bank," "Trust," "University" or "College."

You can read more information about naming a company. 

 

What does all this mean to me, as a person about to incorporate? What do I get from your service that I wouldn't get from your competitor?

Harvard Business Services, Inc. delivers the fastest, most efficient incorporation services in the world. When we promise next day delivery, you get next day delivery, with our Premium package, if the order is place before 1 PM EST. Our Standard and Premium services include a first-class corporate kit, which includes a fold-up style, lead-cast lettering corporate seal as well as stock certificates and a book for recording minutes. Our Basic package includes a CD-ROM, and our Green package is delivered entirely by email. All our business formation packages include a digital corporate seal and one year of Registered Agent Service. 

Harvard Business Services, Inc. fast, efficient service comes by virtue of our special authorization in cooperation with the state of Delaware to process approvals on an expedited basis. Your approval process takes top priority, not just with us but also with the Division of Corporations. We then send your documents by email and mail so they are in your hands very quickly. 

 

What is a Delaware corporation?

A Delaware corporation is a business entity that is created under the Delaware General Corporation Law. The state of Delaware's business-friendly legal climate has been voted the best in the country for 11 years in a row by the U.S. Chamber Institute for Legal Reform; this is why Delaware is the popular choice among cmpanies that wish to incororate. Corporations are different from limited liability companies in that they have the ability to go public by selling shares of stock in the company. For more details, or to form a corporation, please visit our corporation 101 page.

 

What is a Delaware Registered Agent?

Anyone who forms a corporation in the state of Delaware must, as prescribed by Delaware law, retain a Registered Agent within the state. The Registered Agent acts as the original incorporator, files the corporation and remains the Registered Agent for the life of the corporation.

You can count on Harvard Business Services, Inc.'s Registered Agent service to send out your annual Delaware Franchise Tax report, to help you compute your tax (if necessary), to assist you (if necessary) in making changes to your corporation, such as increasing the number of shares of stock or changing the corporate address. We can also answer your questions at any time. 

 

What is your total annual Registered Agent Fee?

We charge $50 per year which, to our knowledge, is and has been the lowest Registered Agent Fee available. And, unlike some other services, our fee covers 12 full months, regardless of which point during the calendar year you file your corporation. 

 

What par value should I place on my stock?

Par value has no relationship to the market value of your stock. If your stock were publicly traded, investors would determine its day-to-day market value. The stock of many large and well-known corporations may trade for $50, $75, or $100 on a given day, but the par value of their stock may be as low as $.00001. Par value affects your Franchise Tax, so you can save money by assigning a low value. A $0 par value is usually recommended for companies with 1,500 shares or less. To read more details on par value stock, see our understanding your company’s stock page.

 

When is my Registered Agent Fee due?

We bill you on the anniversary of your incorporation date each year, which means your Registered Agent Fee covers a full year's (12 months) service. For example, if you file through us in October, your next Registered Agent Fee is not due until the following October.

Some other Registered Agent services bill you on a calendar-year basis; that is, if you incorporate toward the middle or end of the year, you will receive a Registered Agent invoice at the beginning of the next calendar year, which may be only a few months away. Again, beware of what other Registered Agents claim. Look out for Registered Agents who tell you their fee can be increased at any time without notice. They can, and will, increase your annual rate.

 

Which endings are not allowed for limited liability companies?

Your LLC name cannot contain the words "Bank," "University" or "College." 

 

Why has Harvard Business Services, Inc., unlike most of its competitors, tailored its services so closely to the needs of people who are forming businesses? Has a company culture created this affinity with entrepreneurs?

Rick Bell, the founder of Harvard Business Services, Inc., has an entrepreneurial background that spans a wide range of start-ups and business ventures. Since starting Harvard Business Services, Inc. in 1981, Rick has maintained that spirit and utilized his experiences while refining and simplifying the business of helping other entrepreneurs form businesses.

Rick firmly believes that self-reliance, hard work and the can-do spirit of entrepreneurship have a proven history of creating and supporting vibrant, dynamic economic systems. If the process of forming a corporation were an expensive, time-consuming obstacle to starting a business, it would stall an otherwise powerful economic engine.
 

 

Will you increase my Registered Agent Fees in the future?

Absolutely not. This is one of the hallmarks of our business philosophy and we are proud of it. Harvard Business Services, Inc. is alone in guaranteeing a fixed annual fee of $50 for the life of your corporation.

 

 

Learn About Incorporating in Delaware
Secure Connection
X Secure & Confidential

Your personal information is encrypted by Secure Sockets Layer (SSL) software so that it cannot be read as the information travels over the Internet.

Trustpilot
X Our customers love us!
We have lots of great customer reviews.
Like our service? If you are one of our many satisfied customers, please let us know.
BBB A+ Rating
X A+ Rated BBB Accredited Business

Need more proof that we're the best? Check out our record!

100,000+ Companies Formed
X
134,026

Companies Formed Since 1981

Disclaimer: Harvard Business Services, Inc. is a document filing service that provides general information. We cannot render legal or financial advice and your use of this site is subject to additional terms and conditions. HBS is not affiliated with Harvard University.

© Copyright 1996-2015. All rights reserved.