Delaware: the First State. The Small Wonder. The state that was the first to ratify the Constitution of the United States and built the first Protestant Church. The state that years later would bless us with Sugar Ray Leonard's fists and allow Elizabeth Shue to leave Las Vegas and go back to the future. Thanks, Delaware.
This small and mighty state is also a welcoming one in which to legally start your small escort business, and in this article you'll find clear step-by-step advice on how to just that. For more information on why it's vitally important to register your business, refer to our article Don't get busted for tax evasion: Why registering your escort business is the only option.
For more information on these specifications in Delaware, visit Corp.delaware.gov.
Step four: Register your business / business name
Sole Proprietorship:
In Delaware you are not required to register your name or a DBA name if it is your name and service: "Jane Doe's Escort Service". However, if you take on any other form of a DBA name, you have to register it with your county clerk's office. For more information on if taking on a DBA is a good choice for your business, refer to our article Do I want to be a sole proprietor?.
To register your DBA name in Delaware, download the Fictitious Names Registration Certificate. A $60 filing fee is required. The form contains basic information about who's running your business, and must be signed in front of a notary public. There is a $25 filing fee, and you can find your county's address at Delaware State Courts.
Partnership:
In Delaware you are not required to register your business, business name or a DBA name if you are a general partnership and it is the name of the partners in the partnership agreement. However, if you take on any other form of a DBA name, you have to register it with your county court's office.
To register your DBA name in Delaware, download the Fictitious Names Registration Certificate. The form contains basic information about who's running your business, and must be signed in front of a notary public. There is a $25 filing fee, and you can find your county's address at Delaware State Courts.
Corporation:
To register your corporation in Delaware you'll have to file your Articles of Incorporation, which includes all officers and managers of the company and their contact information. You have the option of registering as a non-stock or a stock corporation. If you're new to owning a small business, keep it simple and own a corporation where the divisions of stock are not automatically defined.
You can download the Non-stock Certificate of Incorporation form from the State of Delaware website. The filing fee starts at $89, and instructions as to what needs to be included in a cover letter are detailed on the form.
LLC:
In Delaware, you need to file a Certificate of Formation form and send it to your Secretary of State along with a $90 filing fee. Instructions and information as to where to send the form are included.
More information on How to form a business entity in Delware.
Step six: Register for your Delaware state and local city taxes
There are a few basic types of taxes small businesses in Delaware may register for.
- Individual Income Tax: The state collects income tax on each person making a profit in Delaware. If you're a sole proprietor or LLC, you'll file your business profits/losses along with your personal income tax. For more information go to Revenue.delaware.gov: the site has forms and answers to frequently asked questions.
- Taxes on LLCs, limited partnerships and corporations: There is an annual tax of $250 on LLC or partnership in Delaware, with additional taxes for corporations depending on their yearly profits. You can find more information and register for these forms at Corp.delaware.gov.
- If you have employees: If you have paid employees that are not members or owners of your company, you'll have to withhold a portion of their wages for social security and Medicaid, as well as Worker's Compensation. You can conveniently register for these and other taxes at OneStop.delaware.gov.
- Self-Employment Taxes: If you own and operate your business and are not paid as an employee, you'll need to file your own self-employment taxes for social security and Medicaid. This is particularly true for sole proprietorships, general partnerships and LLCs. Download Schedule C / 1040 form and get more information at IRS.gov.
- Other state / city taxes: Chances are there are no other small taxes you'll be require to pay, but more information should be read at Delaware Division of Revenue.
Step seven: Get necessary licenses and permits
There is no one basic "business license" in Delaware, and chances are your city won't require you have one. But it's a smart idea to check with your city to make sure that nothing extra is required when setting up your small business. Your state has made it rather easy for you to register, with Delaware's One Stop Business Registration and Licensing System.
For more information
Visit the official Website of the First State and read Delaware small business guide.
Find out how to register an escort business in each state of the USA.
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Please note: Dating.com is not a legal service, nor are we tax advisors or accountants. We do offer you what we consider our best advice, but if at all in doubt, please consult a professional.
