Incorporating a Business in Delaware

[dcampbell918]

Hello,

I've heard that something like 60% of Fortune 500 companies incorporate in Delaware to save money and gain tax benefits.

This sounds like something to look into when starting a business.

Does anyone know some more of the benefits of incorporating in Delaware or have any experience with this?

[Kay]

Hi, dcampbell918! Welcome to BAF, nice to meet you. :) These are both from a .gov site so you can be sure of the accuracy of the information.

There's this page aimed solely at Incorporating in Delaware. (http://delaware.gov/egov/portal.nsf/portal/incorporateindelaware)There's loads of information resources there. That page also has a PDF explaining all about why companies choose them. This is the description of it.


Almost a million business entities have their legal home in Delaware including more than 50% of all U.S. publicly-traded companies and 60% of the Fortune 500. Businesses choose Delaware because we provide a complete package of incorporation services including modern and flexible corporate laws, our highly-respected Court of Chancery, a business-friendly State Government, and the customer service oriented Staff of the Delaware Division of Corporations. Read "Why Corporations Choose Delaware" to see why almost a million business entities have chosen to make Delaware their legal home.

There's also a page specifically for all the ins and outs of starting a small business in Delaware, including incorporation and the support the state offers. Starting a Small Business in Delaware (http://delaware.gov/egov/portal.nsf/portal/startasmallbusiness)

[Nazreen]

A warm welcome to you Dcampbell918. Hope to see more of your posts in the forums.

I didn't know that they have such a thing in Delaware. The link Kay has provided is a very good one. Aside from tax incentives, there are more additional benefits for business in the state of Delaware. It would be good if you check these out for yourself.


Incentives and Programs
-Blue Collar Job Act
-Brownfield Redevelopment Program
-Business Forms
-Delaware Manufacturing Extension Partnership
-Employee Recruiting & Retention
-Employee Training Grants
-Financing and Incentives
-Green Industries Program
-Micro Loan Training Program (City of Wilmington)
-Neighborhood Assistance Program Tax Credit
-Tax and Tax Incentives

Are you planning on setting up a business in the state of Delaware, Dcampbell918.

[Fergal]

Hi Dcampbell and welcome to Business Advice Forum.

Do you live in or near Delaware?

Have you considered approaching anyone such as you local Chamber of Commerce or government small business support agency?

[gabes02]

Hi I'm a little late posting here. D, I have just gone through this process. One huge advantage to Delaware is that it is the only state where you can maintain personal anonymity at the public level. You can get tax advantages in a number of states, but DE is the only one for this. I know a guy that can set up the whole thing for you, use his address, get a bank account, everything. After tons of research, I finally got what I wanted.

[myusacorporation]

Actually, thats not entirely correct. Delaware is not the only state that offers good privacy protection. In fact its called "nominee officers/members", a way to legally "hide" your name from authorities using a third party. The state with the best laws for that purpose is actually Wyoming.

[Henry_Jakson]

There are many benefits to incorporating in Delaware, including the points stated below:
1. Delaware has no personal property tax, intangible property tax, or sales tax that is levied against Delaware corporations.
2. On a related note, shares of Delaware corporations owned by non-residents are not subject to any Delaware taxes.
3. Incorporating in Delaware involves no minimum capital requirement, with many other states requiring at least $1,000 in capital.
4. Incorporating in Delaware is an easy process.
5. One person can be the only Officer, Director, and Shareholder for Delaware corporations.
6. Delaware corporations pay low incorporation costs when incorporating in Delaware.
7. Incorporating in Delaware also has legal advantages.
8. Delaware corporations provide a major source of revenue to the state.
9. Delaware corporations pay an annual franchise tax that is amongst the lowest in the nation.