Stellar Formation - FAQ

Why Should I Use Stellar Formation instead of one of those other company formation services?

We’re stellar. Isn’t that enough?

No, but seriously. We are a formation company built by startups for startups, and advised by top startup lawyers.

Our idea was that successful company founders, who have built and exited their own startups, should design how they want company formation should work, and we’d just get the lawyers involved to make sure the documents are top-notch.

Handy Dashboard. That’s why we have a dashboard where you can access your documents at all time in case you misplace them.

Total Transparency. That’s why we have transparent pricing. You look at those other companies and they offer you a “price” on their websites, but it’s never the real price. They make you waste a lot of time putting in all your information before they tell you how much it’s all really going to cost.

Vesting, Equity, Acceleration, IP protection. If you’re a startup, you need your bases covered. Your shares should vest correctly. Your equity should be set up for future investors. Your IP should be protected. Most of the other formation companies don’t even offer these services. And whereas the some of them may have documents that handle these matters, but we were made by startup founders, with other startup founders in mind. We know how this business works.

What if a founder is located outside of the United States?

In general, this is not a problem. US law is fine with non-resident shareholders, directors and officers.

That said, any founder located outside of the United States should consult with an accountant familiar with tax withholding issues from the U.S. to the founder’s country. This is treaty dependent.

There may also be issues with what is known as “transfer pricing.” For instance, when the founder issues intellectual property to the company, some foreign jurisdictions may impose taxes.

Finally, any founder that wishes to come to the United States on a visa should pay attention to immigration issues. Sometimes, an US visa application may be affected by the fact that an applicant is the officer of a US company, giving the impression that they are coming to the United States to carry out business.

Please send us a note if you need a reference to an immigration lawyer.

How Long Does It Take to Form a Company with Stellar Formation?

Only about two or three days. We use expedited filing. Otherwise it takes forever (aka several weeks).

Be advised though. It still takes a week or two for the physical documentation to arrive from Delaware which you will need to open a bank account. Also, it may take a week or so to apply for your EIN number if you do not have an United States Social Security Number or Tax Identification Number.

Do I Have to Make an Expedited Filing with Delaware? Why Can’t I Go the Slow Route?

Oh yeah. Don’t even think about not making an expedited filing. Unless you enjoy weeks of wondering if your company is set up, will be set up, or has disappeared on the shores of Delaware.

Don’t get us wrong. Delaware’s great. They just don’t like non-expedited filings. If you’re the type of person that enjoys watching drips of water bore a hole through a rock, then reach out to us. You can save the $25. Just don’t say we didn’t warn you.

What is a Registered Agent, and what do they do?

It’s just the law. You have to have a registered agent, also known as an agent for service of process. We set up an account for you with A Registered Agent Inc. They’re solid, cost-effective partners, who do their job well.

You’ll receive multiple annual report and Franchise Tax reminders, and you can always track and manage your due dates in your online account.

Otherwise, their job is to scan service of process and all documents into your online account immediately for no additional cost.

For a premium, the registered agent can also help you make your required annual report filings and franchise tax payments.

Remember: This is not a general mail forwarding service. We can add that to your registered agent account for an extra charge. You can also use http://www.virtualpostmail.com or similar services.

How do I get an EIN number for my new corporation?

With us, that’s part of package. So long as you have a Social Security Number or a US Tax Identification Number, we’ve got you covered.

If you don’t have a tax identification, we also have you covered. However, the process is quite a bit more complicated and we have to send you some extra docs to sign, and then fax them out (yes, people really still use fax machines). We have to charge extra for that. Here’s our pricing for EIN’s for companies without an SSN or US Tax Identification Number: [INSERT HYPERLINK]

Do I Have to Pay Full Franchise Taxes for the Year on my Company even if I Incorporated it at the end of the Year?

Yes. We’re sorry to say this, but yeah. That’s how it works. Even if you form the company on December 31. If it’s December 20th, and you’re not in a rush, go on vacation. We’ll still be here in the New Year to form your company.

How Do I Make an S-Election to Become an S-Corporation?

Once we’ve formed your C-Corporation, you can make the election to become a Small Business Corporation (S-Corporation) to take advantage of the tax benefits.

However, remember, all members of S-Corporations must be permanent residents of the United States and there are limits on the number of shareholders.

Our partner law firm, General Standards, can help you with this. Please contact spencer@generalstandards.co

What if I’m actually doing business in a State other than Delaware? Do I have to qualify?

Yes, you do. Especially if you have office space or employees in that other State. New York and California tend to be particularly aggressive about collecting taxes so be advised.

It’s a bit of a process. Our partner law firm, General Standards, can help you with this. Please contact spencer@generalstandards.co

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