DELAWARE INCORPORATION: WHAT ARE THE ADVANTAGES?

2007-03-08 10:33:40

( Business )



Delaware is popular for the numerous returns it offers to companies that incorporate in the state. To understand just how appealing it is to organize your corporation in this business-friendly state, let’s take a peek at the different benefits of Delaware incorporation.

The incorporating costs in Delaware are some of the lowest in the country. Filing fees are kept at a minimum to attract more business owners, and remain competitive with the other states.

Corporations that are formed in Delaware but do not conduct business in the state are not obligated to pay income taxes. In addition, you do not have to obtain a business license if your corporation does not operate in Delaware.

Delaware incorporation does not demand any residency requirement from business owners. The same privilege is also extended to directors, officers and shareholders of the company.

Delaware incorporation permits the business owner or any one person to hold all officer positions (president, secretary and treasurer) and serve as sole director.

Delaware has a separate corporate law court system known as the Delaware Court of Chancery. The advantage is that corporate cases are decided not by juries, but by judges educated in corporate law.

Even though Delaware has an information sharing agreement with the IRS, business entities should not worry about privacy issues. A Delaware corporation does not have to disclose the names of its officers, directors and shareholders. The only name and address which needs to be listed in the Articles of Incorporation is that of the incorporator and registered agent.

With this in mind, it is easy to see why Delaware is a favorite state to incorporate in. In choosing a state of incorporation, it is important that you pick the state that best suits your needs. But you can’t deny that all these incentives make Delaware incorporation hard to ignore.


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