WHAT MAKES DELEWARE INCORPORATION POPULAR

2007-03-08 10:33:40

( Business )



Deleware incorporation is a popular choice among businesses. Small entities want to incorporate in Delaware. Over half of the Fortune 500 companies are incorporated in the state. Companies previously incorporated elsewhere, reincorporate in Delaware. Why? Deleware incorporation is preferred by a lot of companies because the state is considered pro-business and incorporation-friendly. Read on.

The Delaware General Corporation Law permits greater flexibility in conducting businesses. Delaware courts have over 200 years of experience as a maker of business laws. In addition, the corporate statutes are kept up-to-date by the state legislature.

Delaware has a separate business court system called the Delaware Court of Chancery. Cases are decided not by juries, but by judges selected because of their expertise on corporate law.

Deleware incorporation is inexpensive. Incorporation costs are one of the cheapest in the country. Further, Delaware sets no minimum amount in opening a business bank account.

Delaware has no sales or personal property taxes. Entities that incorporate in Delaware but do not conduct business in the state are not subject to pay corporate income taxes. Delaware taxes are also not applicable to stocks owned by persons not residing in the state.

In a Deleware incorporation, a single individual can hold all officer positions and serve as the sole director. This advantage allows small businesses run by one person to incorporate in Delaware.

Physical presence of your corporation is not required. To incorporate in Delaware, you must only maintain a registered agent in the state. Officers, directors and shareholders need not live in Delaware.

Delaware is definitely an appealing state to incorporate in. The state provides a lot of advantages for corporations to enjoy. Remember though, that it is still best that you incorporate your business not in the state that offers the most benefits, but on the state that best meets its various needs.


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