Incorporate Your Business > Delaware Advantages

Delaware Advantages

Delaware has long been the premier location for corporations because of specific advantages:

  • EASY, FAST INCORPORATION
  • LOW COST
  • NO STATE INCOME TAX IF THE CORPORATION IS NOT DOING BUSINESS IN DELAWARE
  • NO SALES TAX
  • NO PERSONAL PROPERTY TAX
  • NO INTANGIBLE PROPERTY TAX
  • Most Delaware corporations can be formed within minutes and documents are available within 24 to 48 hours.
  • Incorporation costs are low.
  • Service from the State of Delaware is fast and efficient.
  • One person can be the only Officer, Director, and Shareholder.
  • No minimum amount of capital is required.
  • Delaware state income tax is not levied on corporations which are not doing business in Delaware.
  • Annual franchise tax is low (minimum is $75 tax, plus $50 filing fee, total $125).  LLCs pay $250 annually.
  • Officers and Directors can be indemnified, limiting their personal liability.
  • Corporate books and records may be kept anywhere in the world.
  • Non-resident shareholders pay no Delaware tax on shares.
  • Shareholders are protected by takeover statue, which limits abusive hostile takeover tactics.
  • Directors do not need to be shareholders.
  • Delaware corporation law has well-established legal precedent*.
  • Delaware courts are respected nationwide for their expertise in corporate matters.
  • Voting provisions requiring greater-than-majority approval may be enacted.
  • Delaware  allows for conversion of corporate entities - LLCs can convert into corporations and corporations can convert into LLCs!
  • Liberal choice of corporate name provisions and ease of reserving corporate name.
  • Corporation may pay dividends from profits and surplus.
  • Shareholders, directors and/or committee members may act by unanimous written consent in place of formal meetings.
  • Directors may be given the power to make and alter by-laws.
  • Corporation may hold stocks, bonds or securities of other corporations, real and personal property, within or outside the state, with no limitation as to amount.
  • Different kinds of business may be carried on in combination.
  • Corporation may fix quorum of board of directors -- not less than one-third of the whole board; two if only two shareholders; one if only one shareholder.
  • Voting trusts and voting agreements may be created.
  • Generally, stockholder liability is limited to stock held in the corporation.
  • Delaware law includes Close Corporation provisions.
  • Classes of stock may be issued in series.

* The Delaware Court of Chancery is a court of corporate and business expertise and excellence admired around the world and is the key reason why more than half of all Fortune 500 companies are Delaware Corporations!

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“Kelly is an extraordinary woman, leader, and humble servant with the expertise to listen, connect, plan, take action and execute with excellence...since 2005, she has consistently exceeded expectations for referrals and many commented on her personal character, positive attitude, and impact on them as well as our community!"
Al Paoli, Director, Small Business & Technology Development Center (SBTDC) for Kent County, Delaware

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