Many clients call us with questions about incorporating in
Delaware. While each business plan is unique, and you can
legally incorporate in any state no matter where your business
is located, there are a few things that you, the business
owner, should be aware of.
Delaware requires less information about the founders of a
corporation than other states and the added privacy may be
important to you. Delaware (more than 50% of the Fortune 500
are incorporated in Delaware) is attractive for other reasons
as well. Delaware has an extremely well established body of
law, does not seek to tax income earned in other jurisdictions,
has an excellent, informed business court in its Court of
Chancery and is very pro-business. For all these reasons,
Delaware corporations are a known commodity in business circles
(particularly banking) and are always well received.
The Potential Disadvantage:
Small business owners and entrepreneurs can actually wind
up spending more money by incorporating in Delaware if it
is not their home state. If an entrepreneur or small business
is conducting business in its home state, they will also have
to qualify to do business there. This could wind up costing
you an extra few hundred dollars, not to mention certain additional
annual fees. Of course, the extra few hundred may not mean
much to you or you may have a strategic reason for choosing
to incorporate in a particular state.
Start A Business.com does recommend that you consult with
an Accountant and/or Legal Professional before you incorporate
your business. Having your questions answered by a legal professional
will enable you to make the decision of whether or not it's
beneficial to you and your business to form an entity in Delaware.
Having that information beforehand will allow us to provide
the best level of service to you, and also keep your costs
Click here to see Delaware
State Compliance Requirements
The Corporate Specialist team at Start a Business.com, Inc.