Steps to Incorporate in Delaware [Updated 2019] IncParadise from blog.incparadise.net Incorporate Delaware: The Benefits of Registering Your Business in the First State When it comes to starting a business, choosing the right location can be crucial to its success. Delaware, known as the "First State," is a popular destination for entrepreneurs looking to incorporate their companies. But what makes Delaware such a great place to do business? In this article, we'll explore the benefits of incorporating in Delaware and why it might be the right choice for your business. Delaware's Business-Friendly Environment Delaware has long been known for its business-friendly environment, which has made it a top destination for corporations looking to incorporate. One of the biggest advantages of incorporating in Delaware is the state's low corporate tax rate. Delaware has no sales tax, and the state's corporate income tax is only assessed on income generated within the state. This means that companies that do business in other states can avoid paying additional taxes on their earnings. Another advantage of incorporating in Delaware is the state's flexible corporate laws. Delaware's General Corporation Law is considered one of the most comprehensive and flexible corporate statutes in the United States. The law allows corporations to issue different classes of stock, have unlimited authorized shares, and provides directors with broad powers to manage the company. This flexibility has made Delaware a popular destination for companies looking to raise capital and grow their businesses. Limited Liability Protection Incorporating in Delaware also provides business owners with limited liability protection. When a business incorporates, it becomes a separate legal entity from its owners. This means that the owners are not personally liable for the company's debts or legal obligations. If the company is sued or goes bankrupt, the owners' personal assets are protected. Limited liability protection can be especially important for businesses in high-risk industries or those that deal with large amounts of money. By incorporating in Delaware, business owners can limit their personal risks and protect their assets. Delaware's Court System Delaware's court system is another advantage of incorporating in the state. The Delaware Court of Chancery is a specialized court that handles business disputes, including those involving corporations and other business entities. The Court of Chancery has a national reputation for expertise in corporate law and is often used as a model for other states. Its judges are appointed by the governor and serve for 12-year terms, which ensures consistency and stability in the court's decisions. The Court of Chancery is known for its quick and efficient handling of business disputes. Cases are often resolved within months rather than years, which can save companies time and money. The court's decisions are also highly respected and have a significant impact on corporate law in the United States. Delaware's Strong Infrastructure Finally, Delaware's strong infrastructure is another advantage of incorporating in the state. The state has a well-developed transportation system, including major highways, ports, and airports. The state is also home to several prestigious universities, including the University of Delaware and Delaware State University, which offer a highly skilled workforce. Delaware's location on the East Coast also makes it an attractive destination for companies that do business in Europe or Asia. The state's proximity to major cities like New York and Washington, D.C., also makes it easy for businesses to access important markets and resources. Conclusion Incorporating in Delaware offers many benefits for businesses of all sizes and industries. The state's business-friendly environment, flexible corporate laws, limited liability protection, strong court system, and infrastructure make it an attractive destination for companies looking to grow and thrive. If you're thinking about incorporating your business, Delaware might be the right choice for you. Summary Table: Advantages of Incorporating in Delaware: 1. Business-friendly environment 2. Flexible corporate laws 3. Limited liability protection 4. Strong court system 5. Strong infrastructure