Organization of your Delaware corporation
(N. B. additional costs of states and other third parties)
No messing around wasting your time and money in a long analysis of what type of entity you need.
If you’re looking to give equity to contractors or employees, or to raise money from VCs eventually, you need a Delaware corporation. Simple.
Organizing your Delaware corporation involves walking you through and preparing the following:
(i) Action by Sole Incorporator – transitional document
(ii) Certificate of Incorporation, or Charter – the public statement of your corporation’s formation, which I will have filed with the Secretary of State’s office. As you will normally be physically based and doing business outside Delaware, I will also have filed with the Secretary of State of your physical location a Qualification to do Business in that State. The major disbursements are HERE!
(iii) By-laws – your corporation’s private operating rules. Most is boiler plate: I will walk through your key choices with you
(iv) Initial Board actions, taken by unanimous written consent. Again, I will walk through your key choices with you
(v) Founder’s investment letter – formality clarifying restrictions under securities laws on what you can do with your stock even if you are a founder.
Note: the basic costs of incorporating in Delaware and qualifying in your home State run from $1200 to $1800, depending on the State. They include the required engagement of a Delaware Agent for Service of Process, a minute book and stock certificates. These are disbursements on top of the flat fee below.