With a population of fewer than 1-million, Delaware is a small state, but with outsized importance when it comes to corporations. To put this into perspective, 64% of fortune 500 companies in the country incorporated in Delaware. These companies include Coca-Cola, Google, and Walmart. But why is Delaware that important?
- Modern Corporation Statute
There is a bi-partisan political consensus in Delaware to keep their corporation statute up to date. Companies want to operate under modern laws that take into account the current business atmosphere.
But though other states could copy Delaware’s corporation statute, more advantages come from incorporating in Delaware than other states.
- Delaware’s Court of Chancery
The Court of Chancery is a separate court that hears disputes involving corporate law, and with their rich background in corporate law, they can decide cases quickly. Furthermore, only qualified corporate law experts are appointed to the court. Companies will prefer places with predictable rules as then they can predict litigation outcomes.
- Tax Haven
Delaware does not collect taxes from Delaware corporations that do not do business in the state. Royalty payments and other intangible assets, too, aren’t taxed, saving companies a substantial amount.
- Friendly Company Registration Requirements
First, business owners are not required to list their names when filing business formation papers allowing owners to maintain their privacy as no names appear on public records. Furthermore, one person can hold all the offices of the business. Below are some more of the requirements:
- There is no minimum bank account requirement for a company compared to some states that have a $1,000 minimum requirement.
- Directors can set any price on shares they wish to sell.
- Finally, you do not have to visit Delaware to register your company. You can do it over the phone or engage our services for fast and affordable service.
Delaware is a slice of heaven for corporations, and we here at Filejet believe you should have a share. Contact us for any help incorporating in Delaware.