Delaware tops the list of most favorable states where one can safely incorporate their businesses. This is because it is easy to incorporate or to form a limited liability company in Delaware, a fact testified by the huge number of large corporations – Nasdaq and Fortune 500 – and foreign corporations existing within its boundaries.
From the foregoing, it can be safely said that it is very important that you conduct business in Delaware after starting a corporation or limited liability company, lest your assets fall at a risk. With an LLC, you can also take advantage of all statutory and judicial laws of the state of Delaware with which you can decide the running of your business. Delaware has always been known as a state meant for businessmen; so it is the best choice if you intend to go public.
There are many advantages to incorporating in Delaware – minimum yearly franchise taxes, minimum LLC formation and incorporation fees and exemption from state corporate tax. Delaware is also a state famous for its ‘Chancery Court’ that deals with business disputes. It has a great record of decisions and speed so that businessmen can spend more time in the business than running around in courts. All the companies in Delaware have to register to function in their local jurisdiction wherein an additional fee is paid to the state of operation of the business.
When incorporating in Delaware, a single person can do the incorporation and form an LLC here. A single person can be the President, Secretary, Treasurer and the single director of the corporation as there is no need of disclosing any names in the Certificate of Incorporation. Another advantage here is that the director or directors can change the By-Laws of the corporation wherein a single person can be the owner and manage the LLC.
There are no minimum limits on the capital requirement for an incorporation or formation of an LLC in Delaware. The corporations and LLCs of Delaware are also permitted to run their business in all the 50 states of America, and in foreign countries. This is the reason that more than half a million businesspeople in America have their legal homes in Delaware where more than 60% of them belong to the Fortune 500 and more than 50% are U.S. companies.
Delaware provides for property tax relief that may be needed for renovation of old property and new construction. Some investment and holding companies of Delaware don’t have to pay corporate income tax. Companies in Delaware experience a fast depreciation of their newly bought assets too. There is no rule that the shareholders, officers and directors of the companies to be residents of Delaware; and there is no need of paying Delaware taxes for shares held by people outside of Delaware. It does not take long to incorporate a business in Delaware; maximum 5 to 7 days for expedited orders and 4 to 6 weeks for non-expedited orders. Once the state of Delaware approves your filing, you can safely assume that your company has acquired corporate or LLC status.