Benefits of Incorporating in Delaware

Benefits of Incorporating in Delaware

Did you know that when you’re ready to incorporate your business, you have options as to where your business will be incorporated? In some states, such as Delaware, you are not required to have a physical headquarters in that state in order to have your business incorporated there. Many large business owners choose to file incorporation paperwork for their business in Delaware due to the many benefits not offered in other states. In fact, more than 66% of Fortune 500 companies have chosen to incorporate their business in Delaware. Keep reading to learn about the benefits of incorporating a business in Delaware to see if it might be an option for your business.

Flexibility

The self-proclaimed “most advanced and flexible business formation statute in the nation,” Delaware offers businesses a multitude of options, which can prove to be beneficial for the company. Other states’ incorporation statutes impose strict rules on residency and the size of the management structure, whereas in Delaware you have flexibility. For example, you aren’t required to designate different people to hold the titles of director or shareholder because in Delaware, a single person can hold multiple positions.  However, other states you may be required to have more people in the management structure.

Privacy

Another benefit to incorporating your business in Delaware is that this states offers more privacy than other states. Delaware does not require the officer or director to be disclosed on incorporation documents, whereas other states do. However, Delaware does require that the name of the business and the Registered Agent name and address be included. This can be beneficial if you are concerned about maintaining the privacy of your business.

Delaware Court of Chancery

The Delaware Court of Chancery specializes in court cases dealing with corporate law. This specialization not only allows for quick resolutions, but it helps to ensure that cases are judged with a thorough and complete understanding of the law, which keeps things fair for all parties involved. While certainly most businesses hope that they do not end up in court, the reality is that it may be a possibility. Knowing a case can be settled expeditiously and fairly offers peace of mind to business owners.

Corporate Taxes

While other states require businesses to pay a myriad of different taxes, Delaware does not require a state corporate business tax, regardless of whether its headquarters are in or out of state. Franchisee and LLC taxes are also significantly less than in other states. In fact, many consider Delaware to be a tax haven or tax shelter due to the limited taxes it imposes. Paying less in taxes is certainly a benefit to any business.

Call URA Today

If you’re considering incorporating your business in Delaware, give us a call. We have helped many other businesses complete the incorporation process and know exactly what needs to be done. Don’t worry about the complexities and paperwork — we’ll take care of it for you! Simply call (855) 236-9172 to reach Universal Registered Agents and get started!

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