Basics

Is the Robert Chessick Company, LLC a non-profit agency?
We are a for-profit business.

What does an business formation service do?
A business formation service, also known as an incorporation service, prepares charter documents (articles of incorporation, certificate of authority, etc.) to create business entities (corporations, LLC's). It may also act as the registered agent and assist in obtaining tax registrations and licenses.

Should I incorporate?
This is our most frequently asked question, and it is the one that we cannot answer. Everyone's needs are different. We encourage to consult your attorney or accountant before taking action. We act as the incorporator and registered agent only.

What types of companies do you incorporate?
We form stock corporations, close corporations, and LLC's within Delaware. At this time, do not offer non-stock or non-profit corporations.

Do you incorporate businesses in other states?
At this time we only offer incorporation and registered agent services in Delaware. Non-residents are welcome to form Delaware corporations, but will be responsible for filing the required registrations in the other states in which they do business.

How can I find out if my name I want for my company is available?
Each state maintains a separate database for the names of entities. You need to check with the appropriate agency in each state you plan to do business, and you may want to consider reserving the name of your business in the other states while you set up your Delaware entity.

I completed a name search and found my name is available. Am I guaranteed that I will be able to use this name in the future?
No. The only way to guarantee the name will be available for your usage is if you complete a name reservation.

If I have a Delaware corporation, do I have to come to Delaware?
Only to appear in a Delaware court if required.

I received my articles of incorporation from you and it looks like (crap). The text is fuzzy and it looks like it has been faxed more than once. What gives?
When we create a document for you, the most common method we use to send the document is fax. After talking to our customers, we found that most would prefer the speed over the appearance of the document, hence why we use faxing. If you would like us to submit your document by mail so that it will not have any fax headers on it, please let us know and we will, however, it will increase the processing time regardless of the chosen expedite method.

Legal

Do I need a registered agent?
Yes. If you have a physical street address in Delaware at the time of incorporation you may use that address.

Don't I have to incorporate in my home state?
No. You may incorporate your business in any state you choose. But you must registered your business in your home state if you plan to do business there.

Do I need a lawyer to incorporate in Delaware?
No. You should speak to a lawyer about any legal matters or concerns.

I hear a lot of talk about how Nevada is better than Delaware because of the "piercing the corporate veil" stuff. What is that and is it really better than Delaware?
This question is best answered by an attorney familiar with Delaware and or Nevada law.

Are there any requirements when naming a corporation or LLC?
Yes. Corporations and LLC's have required words or abbreviations that must be included in the name under most cases. Consult an attorney for specifics.

I want to form an LLC in Delaware and I will do business in New York. What do I have to do to fulfill New York's LLC publication requirements?
The best thing we can do is refer you to their page about the legislation.

Does incorporating in Delaware negate my responsibilities to pay taxes in other states?
This question is best answered by an attorney and or accountant. However, you should realize that you must be registered in a state to conduct business there if their laws require it. Each state has differing laws as to what constitutes doing business.

Financial

What is a fiscal year?
A simple answer to this question is that it is your tax year. Many businesses choose a calendar year (January 1 to December 31) as their fiscal year. However, some businesses prefer to start their financial calendar at a different month (some prefer a July 1 to June 30 year). The fiscal year does not have to start and end with your date of incorporation. The federal government uses October 1 to September 30 as their fiscal year. For more information consult your accountant or financial advisor.

I do not plan to do any business in Delaware. Am I still responsible for any state taxes? 
You will be responsible for paying the franchise tax, which is calculated based on your company's stock. A company that meets the minimum requirements will pay $60 per year for this tax ($200 for an LLC fixed).

Taxes

What is a stock's par value? What value should I have on my stock?
In Delaware, par-value affects your Delaware franchise tax. It is not necessarily the value at which your stock will ultimately be worth. A company with 3,000 or less shares of stock and would pay $35 per year for the franchise tax, plus a $25 annual fee (total minimum of $60). An LLC will pay $200 per year flat rate. Speak to a financial advisor or tax professional for more information.

What is the state's income tax? What is the sales tax rate?
Refer to our tax page for more information.

What is the gross receipts tax?
The gross receipts tax is a tax on the register receipts of the business. Refer to our tax page for more information.

How do I pay my franchise tax?
You have several choices to pay your franchise tax. The easiest is to use the Division of Corporation's online filing website. If you need your company's file number, you can look it up online or call us. Alternatively, you can mail back the bill you receive from the state.

What is the personal property tax?
THIS TAX IS NOT IMPOSED IN DELAWARE! Personal property tax is a tax on personal property not physically tied down to land. It is different from the tax you pay on your home. The tax is levied on tangible things such as furniture, fixtures, computers, office supplies, and any other property used in your business. If you have a home-based business, such property in your home must be declared for tax purposes.

What is the self employment tax?
The self employment tax is assessed on non-corporation businesses. Single-member LLC's and LLC's taxed as partnerships are subject to this tax. The tax replaces social security and Medicare tax that you would otherwise pay from your paycheck. Contact your accountant for more information about how this tax will affect you.

What does millage rate mean? What does "per $100" mean?
A millage rate is 1/1000 of a taxable value. For example, 3 mills would be 3/1000 or .003. "Per $100" would be the same as a percent. A rate of $4.52 per $100 would be the same as 4.52% or .0452.