Widgets and Gadgets Essay Example | Topics and Well Written Essays - 500 words

Widgets and Gadgets - Essay Example Licensing and registration, shareholder agreement, privacy policies, and confidentiality agreement are the specific areas of high importance when incorporating an IT based company. The business of widgets and gadgets in the form of company requires certain general legislations as well as industry specific rules and regulations. In the beginning, the major legal points related to incorporation of a business of widgets and gadgets are discussed and then followed by industry specific legislations. In United States, the formation and incorporation of a company is held under the law of local state. Mostly companies get themselves incorporated under the law of Delaware (Division of Corporations, 2011). The core reasons behind the selection of Delaware state law are very well nationally recognized statute available for corporations, well developed and organized case laws facilities and the presence of more than 50% of US corporations in the state of Delaware. Acquiring a registered agent is a requirement under the law of Delaware as this agent is supposed to act on behalf of the organization and to represent the company in various legal encounters (How to form a Business Entity, 2011). The next step is the formation of a name of the company. By paying around $75.00, name of the company can be reserved for at least a period of 120 days in the record of Delaware Division of Corporations. Legal papers such as Certificate of Incorporation/Formation and Certificate of Status/Good Standing are required to be obtained under Delaware Division of Corporations. Fees related to incorporation, filing of names and legal papers must be submitted. All companies formed in the State of Delaware are required to submit an Annual Report along with $50. The franchise tax has different tax rates with different amounts of profits the company earns in a given financial year. The payment period also varies in the similar manner. Electronic filing of