Delaware Incorporation - A Very Business Friendly State!

It could be said that Delaware incorporation is a kindprotects corporations in Delaware so that they can
ubiquitous process of forming incorporation, for both;focus more on their business operations and
people living in US or abroad. For instance, Delawarereasonable litigations/disputes.o The costs of
incorporation is advantageous to companies whoincorporation filing and franchise tax fees in Delaware
intend to offer their shares to the public. Delawareare low.o Delaware has no minimum requirement to
incorporation is definitely much easier and beneficial foropen a business bank account. Most states require at
businesses when compared to the other states,least $1000.00 in an account to operate a business.o
because of all these contributing factors. AnotherDelaware incorporation allows privacy and anonymity
benefit of Delaware incorporation is Delaware'sof company's Director, Shareholder, or Officer.o In a
extensive and often easily interpretable law. DelawareDelaware incorporation, the business owner can be all
incorporation is also advantageous becauseof the officers (director, shareholder, or officer) of a
shareholders and directors can make decisions byDelaware corporation him/herself.o Business entities or
unanimous written consent in place of formal meetings.business corporations that incorporate in Delaware but
Delaware Incorporation is also a great resource fordo not operate in the State of Delaware do not have
companies seeking venture funds or an acquirer.to pay state income tax.o Business entities that
Delaware incorporation is favored by sophisticatedincorporate as Delaware corporations and LLCs are
investors and may broaden corporate opportunities.entitled to the advantages of asset protection. This
Another reason for favoring Delaware incorporation ismeans company's assets or company debts are
the efficiency of the Delaware Secretary of Stateseparated from your personal assets.o Delaware has
and the quality of Delaware judges in handlingno sales or personal property tax.
corporate lawsuits. Delaware Incorporation can reallyMore than 695,000 businesses have their legal home in
be advantageous as compared to many other states.Delaware, including more than half of all U.S. publicly
Businesses choose Delaware not for one singletraded companies, and 60% of the Fortune 500. This
reason, but because they provide a complete packagemay be why Delaware is called the "Incorporating
of incorporation services. The Delaware GeneralCapital of the World."
Corporation Law is the most advanced and flexibleIn summary, many businesses choose Delaware
business formation statute in the nation. The Delawareincorporation because:o The Delaware General
Court of Chancery is a unique 210 year old businessCorporation Law is the most advanced and flexible
court that has written most of the modern U.S.business formation statute in the nation. The Delaware
corporation case law. Delaware's State Government isbusiness Court of Chancery has written most of the
business-friendly and accessible, and the Division ofmodern U.S. corporation case law.o Delaware's State
Corporation is a model state-of-the-art. These factorsGovernment is business friendly and accessible.o
have all contributed to making Delaware a premierDelaware's legal system has been ranked No. 1 in the
legal home to companies around the world.nation for the fifth consecutive year. That alone
You don't have to be a Delaware resident, butwarrants considering a Delaware incorporation.o
Delaware law requires every corporation to have andShareholder, member or beneficial ownership
maintain a Registered Agent in the State who may beinformation is not public according to current Delaware
either an individual resident, a domestic corporation, orbusiness entity statutes. Delaware corporations are
a foreign corporation authorized to transact business inrequired to file a complete annual franchise tax report
Delaware whose business office is identical with thewith names and addresses of all directors and the
corporation's registered office. You can pay a fee ofname and address of the officer signing the report.
approximately $99.00 for resident agent servicesEffective January 1, 2007 all Delaware business
offered by most incorporators.entities will be required to provide to the registered
You don't need an attorney to perform a Delawareagent the name of a natural person, a business
incorporation, but you should contact an attorneyaddress and a business telephone who will be the
concerning legal matters.communications contact for the entity.o Delaware
Delaware corporate laws allow more flexibility incompanies that do not operate their business within
conducting businesses. Some additional benefits of athe state do not file Delaware state corporate income
Delaware incorporation are:o Delaware has atax returns. There are no taxes on Delaware capital
separate and highly-respected business court knownshares or stock transfers or state inheritance tax on
as the Delaware Court of Chancery. The courtstock held by non residents of Delaware.