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Why Incorporate in Delaware USA?

Delaware is home to many of America’s largest publicly owned corporations for some very good reasons.

Delaware's advantages as a place of incorporation range from the Delaware General Corporation Law to the flexibility built into the corporate formation process.

• Delaware’s large body of business laws helps a company plan carefully to avoid a lawsuit.
• Delaware’s Chancery Court oversees matters involving Delaware’s General Corporate Law and has a reputation as one of the finest courts in the country.
• Chancery Court issues decisions without jury trials, so their decisions are written, well thought-out and easy to follow.
• Legal textbooks rely heavily upon Delaware corporate case law to teach law students because of the well-written opinions from the Delaware Judiciary, so most American corporate attorneys have studied Delaware corporate law.
• The Delaware Division of Corporations generates a considerable amount of revenue for the State, so they have invested in state-of-the-art imaging equipment, and process new filings very quickly.

Why incorporate in Delaware? One of the best reasons for incorporating, or forming a limited liability company, is to separate your personal assets from your company’s assets. If you conduct business without using a corporation, or limited liability company, you place your assets at risk. Separating your personal property from your business property, and using a legal form such as a corporation, can help protect your personal property. Incorporation or formation of a limited liability company also allows you to take advantage of the statutory and judicial laws of Delaware, to help you plan how your business runs.

Stable Legal Platform:

Why incorporate in Delaware? Delaware has a separate Court of Chancery, a business court. The court does not use juries and the judges are appointed on merit, not elected. Because there are no juries, decisions from the Chancery Court are issued in written opinions. Delaware has a large body of written legal precedent to rely upon. Delaware’s General Corporation Laws make it the friendliest state in America for corporations.

All of this means you have a stable legal platform upon which to operate. In other words, you know the rules going in. In many states, the courts can change the rules on a popular whim, with little regard for the effect on business. Chancery Court practitioners recognize that “outside the takeover process... most Delaware corporations do not find themselves in litigation. The process of decision in the litigated cases has so refined the law that business planners may usually order their affairs to avoid law suits.” According to the Wilmington News Journal, some Delaware corporate attorneys have complained that they have worked themselves right out of a job! Delaware receives a large percentage of its revenue from corporate registration fees and therefore it is in the State’s best interest to attract as many corporations as possible.

Low Cost:

Why incorporate in Delaware? The initial charge for incorporating in Delaware can be as low as $74.00! The annual franchise tax can be as low as $50.00 in many cases. The cost of continuing operations is low as well. There is no Delaware corporate income tax for corporations that are formed in Delaware so long as they do not transact business in Delaware. There may be significant federal tax advantages to incorporating as well. Shares of stock in Delaware corporations are not subject to Delaware taxes if the owner lives outside the state. One person may act as President, Treasurer, Secretary and sole director.

Order our simple, turnkey solution: a complete, fully functional U.S. Delaware corporation including:

• Articles of incorporation properly prepared - not the inadequate fill-in forms
• Corporation By-laws
• Organizational minutes, resolutions, etc.
• All state filing fees included
• Certified Copies returned
• Stock certificates issued
• Tax ID number ordered
• Corporate Minute Book Assembled
• Embossing Corporate Seal
• Delaware Corporation Law included
• Resident Agent Services included