Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            
Educate Yourself

Incorporation in Delaware

by Robert Kowalski

Why Delaware?

Delaware is famed to be the "incorporation capital" of America - more than 60% of Fortune 500 companies are incorporated in Delaware. According to Delaware Department of State, Division of Corporation's 2006 Annual Report the number of active business entities in Delaware has grown 50% in the last six years to a total of more than 765,000. In 2006, Delaware welcomed more than 145,000 new businesses.

The reason why so many Fortune 500 companies are drawn to this state is the fact that Delaware has an excellent body of corporate case law spanning 110 years regarding such matters as management/shareholder issues and mergers/acquisitions.

Some Facts

Here are some facts dealing with forming a company in Delaware:

  • Names and addresses of shareholders, directors, officers, members or managers of a Delaware Company do not appear within public records. Moreover, during incorporation process, there is no obligation to provide this information to the State of Delaware.
  • No minimal capital investment in the Company is required.
  • There is no sales tax in Delaware.
  • The Company has no obligation to have a bank account in Delaware.
  • The Delaware Company headquarters may be located anywhere in the world. The Company has no obligation to have its headquarters in Delaware, nor to conduct any business in this state. The sole obligation for the Company doing business somewhere other than Delaware is to be represented by a Registered Agent in Delaware.
  • The same person can be Shareholder, Director and Officer of a Delaware Corporation. Directors can establish the price they wish for the sale of the Company's shares. They can also adopt, modify or repeal any Company bylaw.
  • If the Company does not do business in Delaware, it does not have to pay any income tax to the state (this is relevant to C-Corporations only).
  • If a Delaware Company shareholder doesn't reside in the state, the said shares are not subject to inheritance tax in case of death.
  • The Delaware Court of Chancery is the oldest business court in the country and uses judges instead of juries.
  • Delaware adopted a whole set of corporate laws which are very favorable to companies and which recognize contractual freedom. The "General Law Corporation" of Delaware is one of the most evolved and flexible corporate laws in the United States.

With all those advantages in place, Delaware might not be the most suitable place to incorporate your new business. Delaware is one of the three states commonly recognized as "corporate heavens", the other two being Nevada and Wyoming. Before making your choice please see our article that runs a comparison DE vs. NV. vs. WY.


Ready to Form Your Business in Delaware?

We will prepare and file your application quickly and effectively, all you need to do is complete our simple order form by clicking the button(s) below.

If you have any questions or need assistance placing an order please feel free to contact our representatives to guide you via chat or telephone at +1 (877) 330-CORP (2677).

FORM LLC INCORPORATE

READ NEXT: Incorporating in Wyoming »

DISCLAIMER REGARDING LEGAL ADVICE: This article is not intended to provide any tax advice or direction. None of information contained on this web site is intended to constitute legal or other professional advice, and you should not rely solely on the information contained on the site for making legal decisions. When necessary, you should consult with an attorney for specific advice tailored to your situation.

About The Author

Robert Kowalski is a seasoned incorporator and business filing specialist with over 10 years experience consulting emerging companies with their business filing needs. Robert served as the chief editor and one of the top contributors to Answers @ MyUSACorporation.com.

Comments:

Connect With Us

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment