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Incorporate in Delaware

Over 850,000 companies, both offshore and US companies have chosen to incorporate in Delaware. Over 60% of the Fortune 500 firms and more than 50% of the companies traded on the New York Stock Exchange and NASDAQ are chartered as Delaware corporations. There are so many reasons why it is advantageous to incorporate in Delaware. According to an article in INC. Magazine, Delaware ranks among the top eight states in providing a climate for corporate growth.

There are five distinct reasons why corporations are choosing Delaware, the first being Anonymity.  Delaware Limited Liability Companies and Delaware Corporations can be formed anonymously. Delaware companies may be registered “anonymously” without disclosing the names or addresses of the owners. Corporations are also not required to identify Shareholders to the State of Delaware and Delaware LLC’s are not required to identify Members.

Another advantage of setting up a Delaware LLC is because of the Director Shield Law which permits Delaware Corporations to shelter their directors from personal liability in connection with their actions as board members.

Delaware also has an attractive Tax Climate that supports the growth of Corporations. In many respects, Delaware is similar to Switzerland, Singapore, Hong Kong, Monaco or Liechtenstein. It is a corporate haven that helps you conserve and increase your capital through liberal corporate and tax laws. With no state sales tax, no Corporate Income Tax for companies operating outside of Delaware, and no Corporate Income Tax on companies whose sole activities in Delaware are related to intangible investments, Delaware is considered by many to offer a favorable tax climate.

In 1981 The Financial Center Development Act passed by the Delaware legislature that offered tax breaks and eliminated consumer rate restrictions. As a result, more than 16 major bank holding companies, including J.P. Morgan Chase, First Union Corporation, MBNA America, and Citibank, as well as 18 other financial institutions, have purchased and/or opened branches in Wilmington, DE turning this city into a national and international financial center. There are now 18 Delaware banks with assets in excess of $1 billion and one with assets over $10 billion.

Lastly, the Delaware Court of Chancery has developed a massive body of case law over more than a century of corporation’s rulings. This incomparable resource actually helps companies to avoid lawsuits by informed planning and decision making.

When making the decision about where to incorporate, consider Delaware.