No corporate state income tax
Delaware does not charge corporate state income tax to companies that do not have a physical presence in the state. Delaware charges 8.7% to businesses that operate within the state. Please refer to Section 1902(b) of the Delaware Corporate income tax code for more information.
No personal income tax for non residents
Delaware does not charge personal income tax to employees who are no physically located within the state. If no employees (unless they are US citizens) are located in the US then there is no obligation to pay any personal income tax on a Federal or state level.
Delaware franchise tax
A franchise tax is a tax charged businesses by some states if it is organized there. This tax is usually charged annually and is based on the assets the company holds not the net income of the company in any given year. Delaware is unique in that it charges corporations a low flat fee for LLCs and corporations as long as the corporation is within standard capital structure. Even if it outside a corporation is outside the standard capital structure Delaware offers an alternative way of computing the franchise tax which allows it to be minimized.
Potential misconception – In spite of its name, franchise tax is not specific to businesses that are franchises. There is no special tax for owning a company like 7-Eleven or Subway.
Business that operate in other states should be mindful of which state they incorporate in. Most brick and mortar companies should incorporate in the state in which they intend to do business. This is particularly true for companies that operate in industries that have have specific licensing (such as doctors or banks). Companies that still wish to gain the tax benefits of incorporating in Delaware can qualify their business to operate in more than one state.