| If you own your own company and you've decided to | | | | incorporation elsewhere may make sense. |
| go down the path of incorporating it, you should be | | | | So, why incorporate in Delaware? What are the |
| aware that you don't have to incorporate in your own | | | | benefits that make Delaware so appealing for |
| state where the business is based. You can in fact | | | | companies to incorporate there? |
| incorporate your company in any state within the US, | | | | 1.Delaware offers favourable tax treatment in the form |
| and if your business is large enough, it may well make | | | | of low franchise taxes and no state corporate income |
| sense to do so, with the state of Delaware offering a | | | | tax for companies that operate outside of Delaware |
| number of distinct advantages. | | | | 2.Delaware has low incorporation fees |
| Before we discuss the benefits of incorporating | | | | 3.Delaware courts are very pro-business and support |
| outside of your own state, and in particular in | | | | companies incorporated in the state, with much of its |
| Delaware, you should first consider whether | | | | corporate law written to protect the rights of |
| incorporation outside of your home state is a viable | | | | shareholders |
| option at all. | | | | 4.There is no minimum capital requirement when |
| If your business is relatively small in size, the costs of | | | | incorporating, and only one incorporator is required |
| employing an agent and of incorporating outside of | | | | 5.The state has no sales tax, personal property tax, or |
| your home state, may remove any advantages of | | | | intangible property tax on companies incorporated |
| incorporating elsewhere. In general you should stick to | | | | there |
| your own state if your business is small. | | | | 6.A company can keep its books and records outside |
| One of the costs you will incur are those of an agent | | | | of the state |
| to represent you in the state you choose. If you decide | | | | Because of all these advantages, over 250,000 |
| to incorporate in a state outside of your own, your | | | | companies are incorporated in Delaware. In fact over |
| business will be classed as a foreign corporation, and | | | | fifty percent of all companies trading on the New York |
| you will therefore be required to use an agent to | | | | Stock Exchange are Delaware corporations. |
| represent you. | | | | You should seek qualified legal advice before deciding |
| Also, you should consider your geographical trading | | | | to incorporate outside of your own state, and then |
| area. If your business is based solely on your home | | | | decide whether or not you will benefit from the |
| state, it will probably make most sense to incorporate | | | | advantages above. |
| there. But if you trade across multiple states, | | | | |