The state of Delaware has earned a reputation as the best, easiest and most company-friendly state in the world to incorporate in. Sixty-five percent of the Fortune 500 list and almost 50 percent of all U.S. companies in active commerce are incorporated in Delaware. Company formation in Delaware continues to be favored by many new entrepreneurs every day.
What are the Advantages of Company Formation in Delaware?
The legal and liability guarantees that the state of Delaware provides to its companies are incomparable to those provided by other states. This has made the state of Delaware the capital of incorporation in the USA.
One of the main advantages of incorporating in Delaware is the tax savings offered by the state. Companies formed in Delaware;
- State income tax for out-of-state work,
- Inheritance tax for non-residents of Delaware,
- They pay no company sales tax.
- Individuals who are exempt from Delaware taxes by not residing in the state of Delaware are not subject to Delaware income tax on the stock they own.
- In addition, companies that conduct their business out of state do not have to obtain a business license in Delaware.
In a large-scale survey (2015 – American Institute for Legal Reform), the state of Delaware ranked first in the liability system. According to experts, this is because : Delaware has an unprecedentedly strong, experienced and business-friendly “Delaware’s Court of Chancery” commercial court system.
Corporate Secrecy in Delaware
Company owners in the state of Delaware can ensure their confidentiality through an internal agreement. This is ensured by the operating agreement prepared within the company. The owners of the company are determined as a result of the meeting held by the shareholders, and there is no obligation to write the name of the company’s shareholders in the certificate of incorporation. This serves to protect the owners of the company. Companies are also not required to publicly disclose information about their employees. All business conducted in the state of Delaware is conducted in a public manner. Registered Agents (“Delaware Registered Agents”) only disclose personal data to fulfill legal processes and as required by law.
Why the State of Delaware?
The state of Delaware provides many different facilities;
- You do not have to reside in the state of Delaware to incorporate a company.
- As long as you conduct your business through us, your address does not need to be in the state of Delaware.
- Incorporation and subsequent procedures in Delaware are much more convenient than in the rest of the world.
- A single person can have all the authority and responsibility and perform all transactions as the owner of the company.
- Entrepreneurs and investors prefer companies incorporated in Delaware rather than companies incorporated in other states.
- The board of directors and managers of a joint stock company incorporated in Delaware can determine the stock prices they want to sell.
Taking into account all the advantages, the state of Delaware provides all the necessary facilities for a company. You can easily become a company owner in a state that has all the facilities that company owners are looking for.