| Delaware and Nevada are two states that are tax | | | | information with the IRS. Very important for businesses |
| havens and are very business-friendly. Naturally, | | | | is the fact that the state of Nevada has regulations in |
| businesses weigh the option of incorporating either in | | | | place that protect directors and officials of a |
| Nevada or in Delaware. | | | | corporation incorporated in Nevada from personal |
| Delaware has long been the base for many American | | | | liability for illegal or unlawful acts committed by the |
| industries. The chemical company DuPont is an | | | | corporation. The state has very lenient rules when it |
| example of this. Delaware has a long tradition of | | | | comes to corporate reporting and disclosure. Also, |
| administering and applying corporate law. The | | | | there is no proviso that directors should hold shares of |
| experience of the courts in this regard attracts many | | | | that corporation. The state corporate rules also allow |
| businesses. The continuous updating of corporate law | | | | non-US citizens to be shareholders, directors or high |
| in Delaware is another aspect of the business | | | | officials of a corporation. |
| regulatory culture of the state that corporations value. | | | | On a one-to-one comparison, it seems that |
| For financial companies and banks, Delaware offers | | | | incorporating in Nevada has more tax advantages |
| total freedom in fixing interest rates. The presence of | | | | since Delaware has corporate, personal income, and |
| a large number of credit card companies in Delaware | | | | franchise taxes, which are absent in Nevada. Also, |
| can be traced to this. Overall, the Delaware state | | | | unlike Delaware and other states, Nevada does not |
| machinery that interacts with corporations presents | | | | share tax information with IRS. But this can also be |
| less of a bureaucratic attitude compared to their | | | | problem for corporations registered in Nevada, since |
| counterparts in other states. | | | | IRS audits Nevada corporations more frequently than it |
| Nevada has certain benefits to offer corporations that | | | | does corporations registered in other sates, including |
| register in that state. There is no Nevada corporate or | | | | Delaware. There is also the aspect of relatively more |
| personal income tax. There is no franchise tax or tax | | | | corporate credibility attached to corporations |
| on corporate shares. The annual fees of incorporation | | | | registered in Delaware, compared to Nevada |
| are negligible, and Nevada has no requirement to share | | | | corporations. |