So you’re finally done with the most difficult part of starting a business in Delaware, the next question is, what comes next? Before you start relaxing, it’s best that I break the news to you – don’t worry, it’s not necessarily bad; there are just a few things that you shouldn’t miss.
After incorporating in Delaware, the next step is to complete these 5 things. They’re fairly easy to obtain and process, unlike the stuff that you had to deal with during incorporation. For the good of your Delaware startup, comply with these requirements promptly.
An Employer Identification Number (EIN) is a mandatory requirement in Delaware if you plan to start a small business in the state. An EIN is the equivalent of a Social Security Number for individuals, and you get one because it is the method by which the Internal Revenue Service can monitor your business activities, especially your business taxes.
It will also help you open a business bank account, file for business tax returns and is a requirement for numerous government transactions.
Once you incorporate your Delaware small business under different business structures, it is now considered a separate and individual entity. Without obtaining this requirement, you are not allowed to conduct any business operations in the state of Delaware.
Business licenses and permits are necessary if you want to start a business in any state. This is usually done after the incorporation process and must be completed before you officially start operating your Delaware startup.
For the specific licenses and permits, you need to visit your local county of state office to ask for a consultation regarding your requirements. They are more than willing to help you out. Failure to meet these requirements will bar you from operating your Delaware startup.
Trademarking your Delaware small business is important if you want to protect your business name from being used by other startups. When we create a business name, we put so much thought into it, we try to come up with something that best represents the company as well as the brand that we are trying to offer.
It is disappointing to think that something you’ve worked so hard to create can possibly be used by some random startup, thus, to protect it you need to trademark your business name. By trademarking your business name, you’ll be able to protect it from being used in Delaware and in all states in the U.S.
There are 2 important reasons why you need to open a separate business bank account for your startup. First, it enables you to separate personal and business expenses and second, it allows you to receive checks and payments under your official business name.
Also, when you have a business bank account, you’ll be able to fully establish that your business is indeed a separate entity and you’ll continue to take advantage of the protection and other benefits that an incorporated business can give you.
It’s fairly easy to open a business bank account, the only requirement that you need to secure is your EIN, which I’m sure by now you’ve already obtained. Having a business account will also enable you to build your business credit. While you’re in the process of opening a bank account, you may also want to apply for a business credit card. When used responsibly, a credit card will benefit you greatly because you will be able to track your business expenses better.
One of the most difficult tasks when starting a business apart from learning how to incorporate in Delaware is learning how to deal with state and federal tax requirements and taxes. Tax period is one of the most difficult times of the year for many entrepreneurs and it would be wise to start as early as possible in managing your business’s taxes and understanding what business taxes are in general.
If you consult with one, you’ll also be able to learn how to save on taxes and take advantage of tax benefits and deductions. If you want further assistance, you can also ask for professional help from a tax professional or an accounting firm to do the math for you.
If you want to know how to start a business in Delaware the right way, one of the best things that you can do is to complete all the processes, procedures and requirements required of you by the state. Trust me, after you’ve done all these, you can finally focus on running and managing your business without having to worry about anything. Don’t miss a single requirement so you’ll have peace of mind as you start, grow and expand your Delaware small business.