Why do business owners choose Delaware to incorporate their businesses? There are many reasons and benefits business owners choose this state to start their business or corporation. If you want to know about the benefit of Delaware corporation, know more about it below.
The Benefit of Delaware Corporation
Over 60% of Fortune companies are incorporated in Delaware. Why is it? Let us get to know the benefits of incorporating your business in this state.
Business-Friendly laws
Delaware has a long history of being a business-friendly state. Its laws are designed to provide maximum flexibility and protection for corporations. The state also has a separate court system, the Court of Chancery, which is dedicated to resolving business disputes quickly and efficiently.
Tax Benefits
This state offers several tax benefits to businesses. For example, there is no state corporate income tax on goods and services sold outside of this state. In addition, there is no personal property tax on intangible assets, such as trademarks, patents, and copyrights.
Privacy Protection
Corporations maintain a high level of privacy in this state. Shareholders, officers, and directors do not have to be listed in the public records. There is no requirement to disclose the company’s purpose or activities.
Reduced Liability
Incorporating in Delaware can also help to reduce liability for directors and officers. The state’s laws provide a high degree of protection for officers and directors who act in good faith.
Business Reputation
When you choose to incorporate your business here, you can easily establish credibility and legitimacy for your company. Many investors and lenders choose to work with Delaware corporations because of the state’s well-established legal system and business-friendly environment.
Filings are Quicker
The state is committed to ensuring that it is the most corporate-friendly state. Thus, you can process your filing on the same day. To make it quicker, you may use our online application service.
Slimmed-Down Structure
If you are starting a small business, you do not need to include a few more members of your corporation. The state allows one person to hold the role of director, shareholder, and officer. This is definitely a great choice if you simply want the benefit of a corporation but cannot afford to invite shareholders.
Efficient and Predictable Court System
The court system is widely regarded as being efficient and predictable. It is beneficial for businesses that may face legal disputes or need to resolve corporate governance issues.
Asset Protection
It has strong laws that protect your personal assets. It means that in the event of a lawsuit, your assets are shielded from liability.
You Can Get Anywhere
The state offers efficient access to the US market. It is actually the country’s 7th largest market. In that case, if you start your business here, you are close to various business hubs throughout the states. Locating your business in this state means that you can easily drive to Boston, New York, or just anywhere. You can access them by car or train.
Launch Your Corporation Now
The benefit of Delaware Corporation cannot be overstated. If you want to form your corporation in this state, please use our online form by clicking the Delaware option to your left and choosing the type of corporation you want to start.
