More than 46% of the workforce in Delaware has found employment in small businesses. Moreover, the state enjoys some of the lowest tax burdens and business costs across the U.S.
No wonder prospective owners love Delaware for starting a small business. Add a robust suite of business resources and a healthy business culture to the lower costs.
The support of the state is a tremendous asset to business owners who want to grow their companies. Starting a small business in Delaware can afford entrepreneurs benefits such as:
- Prospective investors in your business enjoy tax benefits
- A corporation court helps arrive at fair decisions involving businesses entities
- Quick filing processing means you can start growing your business sooner
- Corporate structures are less bulky and allow for a single member to hold officer roles
- Delaware prioritizes privacy for small business owners
There are different requirements for Delaware than some other states. For example, the filing fee with the secretary of state is $90 for articles of organization and $50 for a state business license. This amount can vary from other places.
Follow along to learn how you can get started on your entrepreneurship path.
Decide on the Name of Your Small Business
This part of business planning relies on knowing what your business idea is. How will you service the marketplace? Your vision around what you will contribute to your customers is vital to your success.
Naming conventions in the state require entrepreneurs to use names that differentiate them from state entities. You would not be permitted to call your business anything that might be confused with a state or federal institution.
For example, your day trip planning business can be the House of Adventure, but it may not be called the Fun Bureau of Investigation.
Research ideas that will fit your business style and the values of your ideal client.
Choose the Legal Structure that Fits Your Business
Since some business structures have different rules, you will need to observe these when choosing a structure. An LLC, for example, has more excellent protection from personal liability. Meanwhile, a sole proprietorship may fit our vision better with its 100%-profit-to-owner system. Still, 100% of business liability also goes to the owner in that case.
If you choose a DBA, LLC, or an S-corporation, you will have to file the appropriate items for the structure.
Create Your Business Entity
Each business must decide on a professional contact for business dealings. This person is your company’s registered agent and can accept legal items or tax documents on your behalf.
The IRS also assigns an employer identification number or EIN for business tax purposes. Before filing documents that formally create your business, you will need this number. From this juncture, you can register your Delaware business with the state.
Establish a Relationship with a Bank and Setup Accounting
While your business structure offers some protection on its own, opening a bank account with an institution such as Small Business Bank provides additional advantages.
Separating personal assets from business ones is crucial. Consequently, protections under business law are also available when working with a business bank that has the experience to help navigate entrepreneurship.
Business credit cards are also a part of the offerings from a qualified and competent financial institution. These options can be helpful to build credit.
The incorporation of a business also means that accounting can become more manageable. Thanks to tools that track business performance, income, and expenses, reporting can become very precise. Partnering with a business accountant is also a viable option for many owners.
Establish Proper Licensure for Your Business in Delaware
Starting a business in Delaware also requires some legal considerations. For example, licensing, permits, and certifications that fit your business activity must comply with state, local, and federal regulations.
Business licenses or permits can be straightforward. For example, the process might only require a license search or a visit to the Delaware One Stop to register for taxes.
Expand the Reach of Your Small Business
After you incorporate a business, you may become a job creator. Hiring a capable team means drawing on talent in your surrounding community and beyond. This step can be vital to your success.
Employers also have compliance guidelines they must observe. For example, legal hiring means registration with the Internal Revenue Service for employee taxes. Additionally, reporting any new employees to the State of Delaware is a requirement.
Expand the Reach of Your Small Business
A growing number of businesses are building out their online presence. Even outside of e-commerce companies, more brick-and-mortar businesses find customers, vendor relationships, and even employees online.
This website would have been born of the branding you decide on and carry the logo that reflects your company. It does not have to be an intimidating process to build a website.
Numerous online guides and even other professionals can help craft a site that fits your business. Small, medium or large companies can all draw value from having a website.
Your business is an extension of you. It represents a chance to create the presence, the team, and the value you would like to see in your community and the broader marketplace.
Consider Delaware as the home of your small business and uncover the benefits that ownership can bring to your life.