Why incorporate in Delaware?
More than 60% of Fortune 500 companies form in Delaware and the numbers continue to grow.
Delaware is the first choice for business owners seeking:
- • asset protection,
- • a pro-business environment, and
- • the prestige that accompanies Delaware LLCs and Delaware incorporation
By incorporating in Delaware, a compelling array of additional benefits are available, such as:
- • tax savings,
- • convenience, and
- • flexibility
The Delaware PRIVACY Advantage:
- • Company ownership need not be disclosed to the State of Delaware.
- • Company ownership transfers need not be reported to the State of Delaware.
- • Delaware does not maintain a publicly available database of companies' management.
- • The reporting and disclosure obligations imposed by the State of Delaware are minimal.
The Delaware ASSET PROTECTION Advantage:
- • Owners of Delaware LLCs and corporations receive limited liability protection.
- • Owners' assets cannot be seized as a result of the LLC or corporate liabilities.
- • Due to the privacy protection offered by Delaware, it is more difficult for attorneys to track business owners and owners' assets.
The Delaware TAXATION Advantage:
- • Delaware imposes no income tax on either LLCs or S corporations.
- • Delaware imposes income tax on C corporations only to the extent that income is earned in the State of Delaware.
- • Delaware imposes a low franchise tax for small companies.
- • Delaware imposes no tax on capital stock or assets.
- • There is no sales tax in Delaware.
- • There are no Delaware capital shares or stock transfer taxes.
- • There is no state inheritance tax on stock held by nonresidents of Delaware.
The Delaware CONVENIENCE & FLEXIBILITY Advantage:
- • Delaware is one of the least expensive states in which to form an LLC or corporation.
- • Delaware allows one individual to act as the shareholder, director, and hold all the executive offices.
- • Delaware LLCs and corporations can be headquartered anywhere in the world.
- • Aside from a registered agent address, owners are not required to maintain a physical address within the state.
- • Company records do not need to be physically located in the State of Delaware.
- • Stock can be transferred instantly and privately, without filing a public notice.
- • You do not have to be a US citizen to form a regular Delaware C corporation or LLC.
- • Delaware does not impose a minimum capital investment requirement for LLCs and corporations.
- • Delaware LLCs and corporations offer generous protection (sometimes called indemnity) from personal liability.
- • Unlike most other states, Delaware corporations can easily be converted into LLCs and vice versa.