The total cost of incorporating your California business in Delaware will vary depending on the specific services you need. However, the basic costs include:
- Filing fees: The Delaware Secretary of State charges $89 to file articles of incorporation.
- Registered agent: You will need to appoint a registered agent in Delaware to receive legal notices on behalf of your business. The cost of a registered agent ranges from $100 to $200 per year.
- Legal fees: You may want to hire an attorney to help you with the incorporation process. The cost of legal fees will vary depending on the complexity of your business and the attorney’s rates.
In addition to these basic costs, there may be other fees associated with incorporating your business, such as:
- State taxes: Delaware does not have a corporate income tax, but it does have a franchise tax. The franchise tax is based on the authorized capital of your business.
- Publication fees: Delaware requires that your articles of incorporation be published in a newspaper. The cost of publication fees varies depending on the newspaper.
The total cost of incorporating your California business in Delaware can range from a few hundred dollars to several thousand dollars. The best way to determine the exact cost is to speak with an attorney or a registered agent.
Here are some additional things to keep in mind when incorporating your business in Delaware:
- You will need to file a foreign qualification in California. This means that you will need to register your business with the California Secretary of State. The filing fee for a foreign qualification is $200.
- You will need to pay California state taxes on your business profits. Even though your business is incorporated in Delaware, you will still need to pay California state taxes on your business profits if you have a physical presence in California.
If you are considering incorporating your California business in Delaware, it is important to weigh the pros and cons carefully. There are some potential tax advantages to incorporating in Delaware, but there are also some potential disadvantages, such as the higher filing fees and the need to file a foreign qualification in California.
The best way to decide whether or not to incorporate in Delaware is to speak with an attorney to discuss your specific situation and to get professional advice.
Got a techy/website question? Whether it’s about UltimateWB or another website builder, web hosting, or other aspects of websites, just send in your question in the “Ask David!” form. We will email you when the answer is posted on the UltimateWB “Ask David!” section.
Copyright ©