Is Tax Benefit One of the Advantages of Incorporating in Delaware?

Benefit of Incorporating in Delaware

Many US-based IPOs are registered in Delaware. When it comes to incorporation, business owners fear death and taxes but this is not the case if you incorporate it in Delaware. One benefit of incorporating in Delaware is the tax advantage. And this is one of the many reasons many companies incorporate in this state. 

The Main Benefit of Incorporating in Delaware 

The most famous reason this state has attracted many corporations across the US and the world is its taxes. If your corporation is registered in this state and you do not do business here, then you will not pay corporate income tax. It also does not have a sales tax. Want more? You will not pay any investment income tax, personal property tax, and inheritance tax. Of course, you will pay a franchise tax. It is a requirement to register here. But the amount is insignificant compared to the income tax that you have to pay when you incorporate in other states. 

Do You Need to Live in this State to Incorporate There? 

This is another advantage of incorporating here. You do not need to live in this state to incorporate your business here. The state allows individuals and businesses from anywhere in the world to incorporate in this state. It is one of the reasons why it is a popular choice for business incorporation, as it offers a business-friendly environment and a well-developed legal framework. Whether you are a resident of Delaware or any other state or country, you can take advantage of the benefits and opportunities that come with incorporating your business in this state. 

How Difficult It Is to Start a Corporation in Delaware?

Starting a corporation in this state is generally considered straightforward and relatively simple. The state has established a well-defined and efficient process for business incorporation. There are resources available to guide you through the necessary steps. While the process itself is not overly complex, it is important to understand the requirements and fulfill the necessary obligations. 

How Much Does It Cost to Start Your Corporation in this State?

The overall cost of starting a corporation in Delaware depends on several factors, including the type of corporation, the services you require, and the additional optional services you choose. 

  • Filing fee. It is one of the primary costs and the standard fee is $89. 
  • Registered agent fee. Every corporation must have a registered agent with a physical address in Delaware. The agent receives important legal and official documents on behalf of your corporation. The fee can range from $100 to $300 a year. 
  • Optional Services. You may opt for additional services that can incur extracts. If you need assistance with preparing and filing the incorporation documents, you may hire us to do it for you. 
  • Yearly franchise tax. The state imposes a yearly franchise tax on corporations. The amount depends on the authorized shares, par value, and gross assets in the state. 

Benefit of Incorporating in Delaware

Need More Guidance

Even though the process of incorporation in Delaware is straightforward, you may still need assistance in doing so. Do not worry. Our team is here to help you better understand the benefit of incorporating in Delaware and how to get started. Just give us a call and our agents will assist you.