Delaware earned global renown as the corporate capital of the United States because more than two-thirds of Fortune 500 companies and over 1.9 million businesses are incorporated in the state, which hosts less than a million residents.
The state’s advanced legal framework, effortless corporate services, and business-friendly policies make it easy to set up a company in the state.
Perhaps the most valuable asset of the state is the Delaware Business Entity Search, a tool offered by the Delaware Division of Corporations, which allows users to search up details of businesses registered in the state.
In this guide, we’ll show you how to navigate the Delaware Business Entity Search and other essential details to help you make the most of it.
Why is Delaware the Go-To State for Business Entities?
Understanding the search tool is crucial, however it is essential understanding it’s advantages starts with knowing why Delaware is the most preferred state for company formation.
1. Advanced Corporate Law
Delaware’s General Corporation Law (DGCL) is regarded as one of the most advanced corporate laws in the U.S. It offers companies immense latitude in the internal governance and operational structure of the corporation. This is beneficial for founders and shareholders.
2. Specialized Business Court
Delaware is home to the Court of Chancery which is a specialized court for corporate and other business disputes. Unlike most other states, these courts are presided over by judges which is a faster, more predictable, and business-friendly process compared to jury trials.
3. Privacy and Anonymity
Delaware stands out as one of the most privacy-friendly states in the U.S. for businesses. For LLCs, there is no requirement to publicly disclose the names of the members or managers, which makes it ideal for entrepreneurs who want to maintain privacy.
4. Tax Benefits
Delaware offers numerous tax advantages:
- No corporate income tax for businesses operating outside the state.
- No sales tax.
- Franchise taxes are relatively low for smaller businesses.
- Non-residents are not subject to Delaware’s personal income tax if the business is not operated in the state.
5. International Approval
They’re also more likely to attract funding because venture capitalists, banks, and investors alike consider Delaware corporations to hold more value because of the venture capital structures in place. More often than not, they will ask startups to incorporate in Delaware as a prerequisite.
This is the overwhelming reason for people to invest in a Delaware registered US Entity, especially for International Founders.
What is the Delaware Business Entity Search?
This is an official online portal created by the Delaware Division of Corporations for people to search and confirm the information of any business created or registered in Delaware.
The portal is searchable by the following fields:
- Business Name: The legal name under which the company is registered.
- Entity Type: The nature of the business if it is an LLC, Corporation, LP, GP or other.
- File Number: A number that has been allocated to the relevant business by the state to uniquely identify it.
- Formation Date: The date when the business was created.
- Business Status: The state of the entity, whether Active, Inactive, Cancelled or Dissolved.
- Registered Agent Information: The legal and state notice contact for the company.
The search tool can be used at no charge and is important to Delaware’s transparency and ease of doing business systems.
How to Use the Delaware Business Entity Search
Step 1: Go to the official portal
Visit the portal of the Delaware Division of Corporations Business Entity Search at:
👉 Delaware Entity Search Portal
Step 2: Select Search Method
You can find information using any of the following:
- By Entity Name: Type the full or half company name.
- By File Number: Type the specific Delaware file number and get an exact match.
Step 3: Type Search Information
Type the business name or keyword you wish to search. You may try name variations if you are searching for name availability.
Step 4: Check Search Results
The search shows the list of businesses matching your query. You will see listed the entity name, type, file number and current status.
Step 5: Get More Information
By clicking on the entity you can find more information such as the incorporation date and the registered agent. The division of corporations does charge a fee for certain documents like a Good Standing Certificate and certified copies of filings.
Why Use the Delaware Business Entity Search
This tool has many different uses based on what you need.
✅ 1. Checking Business Name Availability
If you’re looking to form an LLC or Corporation, one of the first steps is to ensure the name you desire doesn’t already belong to someone else. Delaware’s search tool helps you with that.
✅ 2. Verifying the Legitimacy of A Business
If a company is planning to do business with you, you can check to see if the business is registered in Delaware and if they are still an active entity in good standing.
✅ 3. Market and Competitor analysis and trends
This is useful for entrepreneurs willing to analyze the market as they can check the business registration history, company formation dates, and business structure.
✅ 4. Getting Legal Documents
Businesses can request legal documents such as certified copies of business filings, Certificate of Good Standing, and other business documents that are needed for compliance, banking, or for investors.
✅ 5. Maintaining Compliance
If you currently have a Delaware entity registered, you can check your company’s public status to check if it has lapsed due to unpaid franchise taxes or missed filings.
Next Steps After You Conduct a Delaware Business Entity Search
Conducting a Delaware Business Entity Search is just the beginning. What comes next is entirely contingent on what you hope to accomplish, starting a new business, verifying an existing one, or performing some due diligence. In this article, we share what comes after your search.
For those looking to Start a New Business
- Confirm Name Availability: When a business name is available, you may register an LLC or Corporation.
- Reserve the Name (Optional): If you are not ready to file for the corporation immediately, you can reserve a business name for 120 days by submitting a Name Reservation Application for a small fee.
- Form Your Entity: If you are confident on the chosen name, you can now file for a Certificate of Formation (for LLCs) or Certificate of Incorporation (for Corporations) to Delaware Division of Corporations.
For those looking to Verify Another Company
- Check the Status: You should be looking up for “Active,” “Cancelled,” “Dissolved,” or “Inactive.” If a business has “Active” status, it is in buena fe (good standing) with the state.
- Order a Good Standing Certificate: If you need evidence of a business’s legitimacy and compliance, you can order a Certificate of Good Standing from the Delaware Division of Corporations.
- Confirm The Registered Agent: Firms need to have a listed registered agent for compliance, so confirm that the company has one.
If You’re Doing Market or Competitor Research
- Note Formation Dates: This helps you understand how long competitors have been operating for.
- Track Entity Types: Knowing if competitors have LLCs, Corporations, or LPs can give you insights into their structural and tax strategies.
- Identify Active vs. Inactive Companies: Analyze trends in your industry by identifying which competitors remain active.
If You Already Own a Delaware Entity
- Verify Your Status: Ensure your company remains “Active.” If not, you might need to pay franchise taxes or annual filings.
- Update Compliance Filings: If you have pending or overdue reports, you may need to pay your Annual Franchise Tax Report or overdue fees.
- Consider Ordering Certified Copies: For banking, international trade, or investor relations, you may require certified documents from the Division of Corporations.
Plan the Next Steps With Professional Help
If you are still unsure of what the next steps are after completing your search, that’s where Bizstartz comes in. We take care of any additional technical steps such as filing your Delaware LLC, getting your EIN, setting up your registered agent service, and even opening a U.S. business bank account so you can focus on business growth.
Limitations of the Delaware Business Entity Search
Though it is a strong tool, there are a few noteworthy shortcomings:
Absence of Ownership Information – Delaware does not allow the disclosure of the privacy of LLC members and corporate shareholders, meaning this data will not be available in the results.
Restrained Contact Details – Only registered agent details are present, and thus the actual business owner’s details are private.
Charges for Official Documents – Search results can be accessed free of charge, however, good standing certificates and historical filings require payment.
Many business owners prefer these shortcomings because they emphasize privacy which is appealing for Delaware.
How Bizstartz Aids with the Formation of Delaware Entities
At Bizstartz, we assist international and local entrepreneurs establish and administer businesses within the US, mostly in Delaware. This is how they assist you:
Entity Formation (LLC or Corporation): With the Delaware Division of Corporations, we take care of the entire filing procedure.
Name Availability Check: Prior to filing, we confirm your preferred business name with the Delaware Business Entity Search.
Registered Agent Services: As a business operating in Delaware, it is legally mandatory to have a registered agent with physical presence in the state. As such, Bizstartz offers this as part of our services.
EIN Registration: We assist you with obtaining an Employer Identification Number (EIN) from the IRS, required for tax and banking purposes.
BOI Filing & Compliance: We ensure the company adheres to the Beneficial Ownership Information (BOI) and IRS Compliance regulations.
Assistance with Opening a US Bank Account: We assist non US residents with the opening of a US business bank account.
Payment Processor Setup: We assist with business verification for Stripe, PayPal, Amazon Seller Accounts and other financials.
As much as possible, we strive to ensure the formation and maintenance of a Delaware entity is as simple, dependable and trouble free as possible.
Final Thoughts
The Delaware Business Entity search is a must use for anyone looking to create, research, or verify businesses in Delaware. This is particularly a go to for entrepreneurs looking to verify name availability, investors doing due diligence, or for business owners ensuring regulatory compliance. This is a free service that offers great value.
Delaware is still the go to state for setting up U.S. companies because of the state’s strong privacy policies, low taxes, and well-regarded corporate law.
If you want to begin your Delaware business setup, reach out to Bizstartz and we will assist you from formation to compliance, banking, and growth. With the right business partner, overcoming barriers to doing business in the U.S. is effortless, regardless of where in the world you are.
