WHY DELAWARE? … A Delaware corporation is instantly recognized around the globe as a stable, reputable member of the “incorporation capital of the world.”
Delaware is widely recognized by the business world as the preferred state of incorporation, and is the corporate home of approximately 40% of all corporations listed on the New York Stock Exchange and the American Stock Exchange.
Over 50% of the Fortune 500 industrial firms have incorporated in Delaware, and international companies who do business in the United States, as well as worldwide, most often choose Delaware to incorporate!
The Top 11 Reasons:
- Delaware is one of the least costly states in which to incorporate. Delaware’s annual maintenance fees are also very low compared to other states.
- There is no minimum capital requirement. While other states may require at least $1,000.00 in capital, a Delaware corporation or LLC requires no initial investment.
- Delaware permits one person to hold the offices of President, Treasurer and Secretary, and be the sole Director.
- There is no corporate income tax for corporations formed in Delaware, but which do not transact business in Delaware. Delaware has no sales tax, and shares of stock owned by an individual outside of the state are not subject to any Delaware taxes. The Delaware annual Franchise Tax remains consistently among the lowest in the nation.
- Delaware is the only state which maintains a special court system dedicated to address the concerns of the corporate/business community. The Delaware Court of Chancery is a “pro-business” court system that employs a judge rather than a jury, for determination in cases. This Court is internationally recognized for its long established body of case law, predictability, and expertise in rendering sound decisions.
- With a Delaware corporation, you do not need to be located in, or ever even visit Delaware You must have a registered agent address in the state of Delaware, which is the legal requirement for service of process. CorpCo supplies this service to you, allowing your corporate headquarters and records of your Delaware corporation to be located anywhere in the world, so long as you maintain your Delaware registered agent.
- Delaware corporations can provide special protection for directors to shelter their directors from personal liability in connection with good faith actions of board members. CorpCo will always insert the “Limited Director Liability” clause in your Delaware incorporation documents, when you incorporate through us!
- Delaware allows the “general purpose clause” to be used, which allows a corporation to conduct any lawful business, rather than being restricted to a certain type of business.
- You can choose to incorporate in Delaware and conduct business in any other state(s). You may be required to formally “qualify to do business” as a “Foreign Corporation” in other U.S. States, and if required, CorpCo can assist you with these filings, as well.
- The Delaware Corporation Department has significant incentives to keep its laws and fees favorable. Delaware is the friendliest State to corporations.
For more details, please download the State of Delaware’s publication: Why Corporations Choose Delaware