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Delaware Business Formation Questions & Answers
1 Answer | Asked in Bankruptcy, Banking, Business Formation and Business Law for Delaware on
Q: Can a website judge me or charge my card?

A website gives discount for each one who use an invite code. I opened more than one account to get this discount every time I purchased from them. I used different cards, name and shipping address on every time I purchased. Can they judge me or charge my card if they know that it's one who... Read more »

Timothy Denison
Timothy Denison answered on Jul 14, 2021

Depends solely on your card member agreementvterms.

1 Answer | Asked in Business Formation, Business Law and Tax Law for Delaware on
Q: I left a company I cofounded but still have 50% share. Would I be personally liable if the company does not file taxes?

I cofounded a S corporation in Delaware a few months ago and left the company as the board member and employee after a couple of months due to disputes with my partner. I still kept the shares (50%) because I was not compensated for the work I did. The company was a start-up and did not have any... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Feb 19, 2020

Depends on what's in the operating agreement/by-laws. What was the underlying entity that was S-elected? S-corps cannot be created at the state level, you have to have a registered entity upon which to elect S status. The IRS will use the entity law to determine owner liability and... Read more »

1 Answer | Asked in Business Formation, Mergers & Acquisitions and Tax Law for Delaware on
Q: How can I optimize a sale of business assets when the business is no longer in good standing?

In 2015, friends and I started a business. We allocated shares, and set up a vesting schedule. In 2016, we decided to allow the business license (Delaware) to lapse and operate with funds from an existing LLC business I own, however, the other partners do not benefit from the LLC business.... Read more »

Jonathan R. Roth
Jonathan R. Roth answered on Aug 14, 2017

More information is needed to give you more detailed advice, but you have two basic options, revive the DE entity and sell the business or document the transfer of the business to the LLC and have it sell the business. The devil will be in the details. I would recommend you sell the assets of the... Read more »

1 Answer | Asked in Business Formation for Delaware on
Q: Is a Delaware LLC that just converted to a Delaware C corporation obliged to send out the 228(e) notice?

What would be the consequences for failure to give such notice?

Michael David Siegel
Michael David Siegel answered on Nov 2, 2016

This is entirely a question of DE law. Call a DE lawyer.

1 Answer | Asked in Business Formation for Delaware on
Q: Registering business in Delaware or Nevada or any other state which is better than the above two mentioned.

I have an online ecommerce store which sells products worldwide, with US, UK and India being the core market. I'm based in India but I want to register my business in Delaware or Nevada. Plus, I have multiple businesses (with different brand names) as well which I would want under a single... Read more »

Adam Studnicki
Adam Studnicki answered on Aug 29, 2015

It depends what your goals are. The franchise taxes in DE can be expensive. WY may be an option to consider as well. A business lawyer can advise based on your specific circumstances.

Please Take Notice: I am not your lawyer unless we enter into an engagement agreement in writing. This...
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1 Answer | Asked in Business Formation for Delaware on
Q: Incorporating and operating in the US

Can non-Americans, residing in their own country, start a company (incorporate) in the US and operate a business (without having to come to the US)?

Adam Studnicki
Adam Studnicki answered on Aug 11, 2015

In some situations, this may be possible. Best to consult with a lawyer about your specific situation.

Please Take Notice: I am not your lawyer unless we enter into an engagement agreement in writing. This is general information that is given for legal education only. It is not legal...
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1 Answer | Asked in Business Formation for Delaware on
Q: How should I go about opening a bank account for my Delaware LLC?

I recently registered a single member Delaware LLC and have a EIN for it. I do not live in the USA and therefore have no SSN/ITIN.

The purpose of the LLC is to process orders more efficiently for our USA clients.

After registering the LLC (through a document filing service that also... Read more »

Charles Snyderman
Charles Snyderman answered on Apr 17, 2014

You should be able to open a bank account in the U.S. without actually coming to the U.S. You say you do not have an ITIN. Why not? It is not difficult to obtain. You will need that so the bank can identify you. The IRS website has instructions for obtaining an ITIN.

1 Answer | Asked in Business Formation for Delaware on
Q: How would a uk company incorporate in the united states

If a uk company wanted to have dealings inside the united states how would that company incorporate within the us boarders

Charles Snyderman
Charles Snyderman answered on Mar 14, 2014

Choose a State to incorporate in, and then find an attorney with expertise in that area.

1 Answer | Asked in Business Formation for Delaware on
Q: I want to start a business with different services ie cleaning, landscaping,painting and powerwashing. what formation?

I live in delaware and will do business in delaware. Can I do a llc? I also will have a partner and the money we put in the business will be equal so we will have equal say. We get along well and have went through some possible disagreements that would come up in the business to see where we stand... Read more »

Charles Snyderman
Charles Snyderman answered on Jan 10, 2013

Yes, you can form an LLC. You should have an operating agreement prepared by an attorney. This agreement will protect both of you down the road in the event of disagreements, and if one of you chooses to leave and you do not agree on the value of his ownership interest, the agreement will state how... Read more »

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