It's a little known fact that more than half of all Fortune 500 companies incorporate in Delaware.
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Do all the brightest minds in business just live in Delaware or is something else going on there?
Something else is going on in Delaware, and it's something that you may want to consider when it is time to incorporate your new business.
Delaware has a longstanding reputation as a haven for businesses because it has created an environment that is extremely pro-business.
If you decide to incorporate your business in Delaware, here are just of the benefits you can expect to enjoy.
- Pro-Business Government Agencies - Unlike many states, Delaware's government agencies and bureaucratic structure is designed to be friendly to business owners. Since businesses are such a vital part of the state's interests, government bureaus maintain a client-oriented focus and utilize technology that makes it easy for your business to do business with state government.
- Favorable Legal Environment - Delaware has a highly-developed legal system that contains a significant corpus of law relating to corporations. State legislators go the extra mile to make sure their corporate laws are kept up-to-date and corporations benefit from an entirely separate legal system. In Delaware, you don't have to place your company's future in the hands of a jury since a judge who is well-versed in corporate law oversees all cases.
- No Residency Requirements - Some states require company stakeholders to reside in the state of incorporation, but not Delaware. You can incorporate your company and live anywhere you like, although you may need to employ a Delaware-based agent to represent your business.
- No Corporate Tax for Non-Residents - Another big benefit of incorporating in Delaware is that non-resident corporations don't have to pay corporate taxes in Delaware. You still need to pay franchise taxes, but so what? If you don't have to pay corporate taxes you're still getting a better deal than you would get if you incorporated in most other states.
- Corporate Officer Requirements - Delaware is somewhat unique in that it allows the same individual to be the corporation's director and hold all officer positions within the corporation. That might not seem important, but if you are a small business it is. Rather than having to relinquish control by enlisting others to serve as officers for your corporation, in Delaware you can retain full control and fill all the positions yourself.
- Low Cost of Incorporation - Delaware-incorporated businesses get a financial windfall right from the start because the cost of incorporation in Delaware is among the lowest anywhere in the U.S.
Recently, other states have taken note of Delaware's success and have modeled their tax structure to be competitive. However, when you consider Delaware's other benefits, it's hard to beat Delaware's appeal to U.S.-based companies.