| 1. The state doesn't charge any income tax on | | | | with no juries. Its cases are decided by the judges of |
| businesses not operating within the state, which makes | | | | the court, which would consist of one Chancellor and |
| it ideal to charter your business there. (note: All | | | | four Vice- chancellors. Since the court of chancery |
| Delaware corporations must pay an annual corporate | | | | cannot award money damages their superior court |
| franchise tax. | | | | also hears a lot of cases between corporations |
| 2. Certain laws, like the Delaware general corporation | | | | involving claims for money. Also, do the large number |
| law, permit maximum flexibility to corporate operations. | | | | of businesses chartered in Delaware their federal |
| You don't even need to have a presence in the state, | | | | bankruptcy court handles many high-profile insolvency, |
| with the one exception of a registered agent to | | | | and the united district court in Delaware consider many |
| accept service of legal operations and to pay the | | | | patent disputes between corporations. |
| corporations annual franchise taxes. | | | | A good example of Delaware charted companies are |
| 3. Courts in Delaware tend to be more experienced in | | | | computer businesses. To protect themselves from |
| corporate law due to the very large number of | | | | hostile takeovers, many computer related companies |
| corporations charted there. In fact one of the last | | | | incorporate in the state of Delaware and base their |
| courts of equity resides in Delaware. A dispute over | | | | head quarters in Silicon Valley. Silicon Graphics |
| an internal affair would be filed with the court of | | | | incorporated in Cali in 1981 reincorporated in Delaware |
| chancery. So, what's a court of equity? It is a court | | | | in 1990. |