Delaware is home to more than half of public companies and Fortune 500 companies because it is particularly conducive to corporations. With more than a million companies headquartered in Delaware, this small state is big on business with its extraordinary infrastructure and benefits that are especially attractive to companies both large and small. If you plan to form a corporation in Delaware, be sure to get to know why this state has been regarded as one of the best places to incorporate since the early 1900s.
With no personal income tax for the company’s non-residents, Delaware has attracted many businesses seeking tax benefits. Although Delaware does require a small franchise fee, it does not require any state income tax from corporations that have been formed there but do not transact any business in Delaware. The tax advantages were designed in order to attract businesses as they continue to do.
No personal residency is required for registering a corporation in Delaware. The company does not have to have an office in the state to incorporate there. This means the business can operate wherever it’s convenient while still enjoying the benefits of incorporating in Delaware. U.S. citizenship is also not a requirement to start a corporation in the state. In fact, the director’s name does not even have to be included on formation documents because of the state’s privacy advantages.
Delaware is known for its flexible corporate statutes. In fact, a single person can be the corporation’s director, officer, and shareholder. The director, officers, or shareholders do not have to live in Delaware or even the U.S. for that matter. With its renowned case law, Delaware has created a business-friendly environment that reflects its flexible business ethic.
Delaware Court of Chancery
The Delaware Court of Chancery employs knowledgeable judges rather than juries to decide cases. The court focuses exclusively on business law so if ever a legal matter comes up for a corporation, it can enjoy greater peace of mind knowing that the case will be decided by judges with reliable expertise.
If you want to attract money, or rather, investments, Delaware incorporation is often required. Many investment bankers insist upon a Delaware address because of its many advantages including the Delaware Court of Chancery. In addition, it’s frequently less expensive to incorporate in Delaware because there are no minimum capital requirements.
Incorporating in Delaware also allows your business to enjoy greater privacy protections than many other states. Delaware is known for attracting investment bankers as well as angel investors. With so many businesses choosing Delaware, it behooves your company to consider this state as well. By getting to know all that Delaware can offer your business, you may find that it’s an excellent fit for your company.