Deciding to form a corporation should be the result of careful planning and preparation. As this is a sizable leap for any business to make, there are a number of facets to this structure worth considering. A more rigid management structure, shareholder responsibilities, and tax concerns should all be weighed ahead of forming an S- or C-corporation. There is also the matter of where you will decide to incorporate your organization. Different states have different rules and tax approaches when it comes to corporations, and Delaware, in particular, is one of the more business-friendly options. By understanding the benefit of a Delaware corporation, you can make a more informed decision about whether or not “The First State” is an ideal destination for your business.
If you are in tune with the business world, you may have some awareness of Delaware’s popularity. While it may seem like a small, unassuming state, it is a major hub of commercial activity in the United States for a number of different industries. Many organizations have opted to incorporate in Delaware for good reason, and if you are considering joining their ranks, you should understand just what that entails.
A Benefit of Delaware Corporation: Chancery Court
What makes a state more appealing than others when it comes to business? One aspect which can be a considerable draw is the laws that pertain to the industry. Some states may favor the consumer more, while others are more tailored to the goals of businesses. In Delaware, there is a special type of court that handles business matters exclusively, which many corporations find alluring.
The Chancery Court is one of the oldest court systems in the country. This circuit hears all types of business matters and features a unique style of judgment. Instead of having a jury decide on matters, cases are instead ruled on by judges with a unique understanding and expertise in business law. For many businesses, knowing that their cases will be heard by someone who knows their interests offers an advantage over other states.
Sensible Tax Laws
One other consideration that is important to your business is taxes. An unavoidable part of life, taxes should be factored into your plans when incorporating your business. Delaware, for its part, has favorable tax laws for businesses, making it a logical destination. While it is true that some states have zero corporate taxes, Delaware’s are still low enough that when coupled with its Chancery Court, it is one of the more viable states for business.
Form Your Corporation Online with Our Help
If you have done the research and decided that incorporating in Delaware is right for you, you will need to complete a Certificate of Incorporation and file it with the appropriate state entity. By working with us at Corporation Center, you can easily complete this process online. We use easy-to-fill web forms and an SSL-encrypted web portal to allow for the quick and secure transmission of your information. If you would like to learn more, contact one of our customer service agents today.