Are you considering forming a business entity in Delaware but want to make sure it’s the right choice? Have you seen so many others start a business in Delaware and asked yourself: “What do they know?” Here at Corporation Center, we offer documentation to form a business in essentially every state. The state forms that are used the most: Delaware. There are several reasons why so many have formed a Delaware corporation online through our site.
Popular With Entrepreneurs Because It’s Popular With Investors
If you’ve spent any time talking to venture capitalists or really any investors, you’ll find that there’s often a strong preference for Delaware corporations. That’s true for many reasons, from how preferred stock investors with voting control of a corporation may have unilateral power in Delaware to merge the entity with something else, as well as many others. It’s entirely possible that if you’re going to take your business entity to the big investors, they’re going to want to see that it’s formed in Delaware.
Customizable to Your Needs
When it comes to corporate statutes, Delaware provides great flexibility. Obviously, you don’t have to be a resident of Delaware to be a shareholder, an officer, a director, or some other position. By that same token, you don’t need multiple to handle those positions, either. As you may know, if you’ve looked at other states, most of them require someone to be the officer, someone to be the director, and so forth. Not Delaware. In Delaware, one person can be the shareholder, director, and corporation officer. That’s just one example of Delaware’s flexibility for business entities.
A Court System for Companies
Delaware does what it can to be attractive to entrepreneurs from outside of the state. Consider: You don’t have to pay Delaware taxes on stock shares you may own if you’re outside of Delaware. Moreover, you don’t need to pay state corporate income tax if your business was formed in Delaware but you don’t actually conduct any business there. Additionally, The Delaware Court of Chancery not only has judges (as opposed to juries) but also is very well-versed in corporate law. As such, it’s far more likely that, in litigation, any judge you get will understand corporate issues very well.
One Thing to Keep In Mind About Taxes
As tax-friendly as Delaware can be, there is still a franchise tax. Depending on which state you’re in outside of Delaware, it’s entirely possible that you’ll have to pay the franchise tax in both states. That’s not to say Delaware is anything less than a great option, it just may not be the best option for your business.
A Delaware Corporation Online or Anywhere Else
Here at our Corporation Center, you can find all of the Delaware forms you’ll need to start your Delaware business right. That said, we offer far more than just forms for Delaware. Indeed, you can find the necessary documentation to begin a business in a state of your choice right here.
