Just like the other corporations, the owners of a Delaware Corporation are shareholders. The owners of this corporation enjoy complete flexibility in terms of forming the company, as they do not have to show up for forming such a corporation. Forming a Delaware Corporation does not require the owners to event pay a visit to the Delaware state. Nevertheless, the owners must submit the ‘Articles of Incorporation’ to the state office of the Delaware secretary. It is mandatory that these articles should state the company’s name, address and that of the registering agent along with the quantity and types of share the corporation is going to issue to public.
There is no doubt about the flexibility that Delaware Corporation provides to its owners but the requirement of holding Annual General Meetings should never be underestimated. The purpose of the meeting should be to select the board of directors of the company. Remember that it is the shareholder’s right that he must receive an invitation of AGM well in advance before the date.
The biggest advantage of the Delaware Corporation is that it is an income tax free corporation but they do have to pay the income tax on their annual franchise earnings. The amount of tax charged by the Delaware state is too little as the state had a policy of levying a tax amount of $75 on the corporations who had issued up to 5,000 shares.
Submit annual report
It is mandatory for every Delaware Corporation that they submit their annual report to the secretary of state’s office. Keep in mind that both the annual report and tax amount are to be submitted to the secretary’s office before the commencement of March.
Register with the government
A foreign corporation must register itself with the Delaware government before they could plan to start a Delaware Corporation.