Friday, July 01, 2005

Comparing Incorporating Costs

I am talking about a C Corp DE options and pricing here, though the same companies do incorporation for all states or S Corp etc.

Going to a law firm costs around $1500 from my recent estimates.

You can find a lot of cheap options on the Internet. I decided to ask for reference from fellow enterprenuers and short-listed to 4 ptions. What was amazing that everyone thought that theirs was the cheapest and it appeared so as soon as I looked at it. Then I found that each company buried 1 item's cost in their price.

So, here I list the key items I think you need to get on a C Corp DE incorporation and who offers it in their basic package vs charges separately, so you can compare and decide whats best for you.

Items Required and Best Price I found by references

Basic Package
Articles of Incorporation
Corporate Charter
Corporate minutes
Corporate by-laws
Corporate kit
Stock certificate
Corporate seal
Preliminary name search.

Additional items you need unless you are located in Delaware:
You need a registered agent at Deleware if you are a business located outside Delaware. We used CSC Corporation from my previous company Coola and they were very responsive and good. I started comparing options as I wanted one offered by the same company who did my incorporation.

Registered Agent (fees are different for first year vs. subsequent years), so ask for costs involved.

Registered Agent Address on Incorporation docs. This is an add-on to get your company incorporated with the DE Agent address instead of your home address if you are starting small. Doesn't mean anything if all goes well. I found that people wake me up at my home asking questions about why I closed Coola and whether I can help them start the same idea as they thought there was still a market for it. All because Coola was incorporated with my home address and contact and we forgot to move it our offices once we setup offices.

Registered Agent as a corporate office address and forwards mail

Add-Ons needed:
Federal Tax Payer ID Form Filling Help:
(I've listed the basic form price here, most sites offer a service to get the actual Fed Tax payer ID itself for an additional $35 to $50)

General Counsel: I found this nice add-on at for $89.00 if you select it during incorporation or its available at $139 per annum after that. I spoke to the lawyers there and believe they are very responsive and this might be a worthy add-on when u need a lawyer consult dring your first few years before you retain a law firm.

Once you scale and have employees you need the following. You don't need it if you are couple shareholdes working off your homes andhave no payroll or hires yet. (Check with a lawyer on specifics of DE Labor laws)

Department of Labor Registration $35
Delaware New Hire Reporting $35


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