Why Do Companies Incorporate in Delaware?
Many businesses incorporate in Delaware because it is easy and more cost effective than doing so than in other states. Others file here for tax purposes or residency requirements. These are the most common reasons, although there are other reasons why this is done.
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Legal Protection
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Delaware has a comprehensive amount of business law. Many companies can plan legal action and avoid lawsuits by following Delaware's business law.
Courts
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The reputation of the Delaware court system is among the best in the United States. The easy-to-understand decisions and low court costs often help minimize complicated and expensive legal action later.
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Tax Regulations
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Delaware is known for its low tax rates for corporations. The state is also known for not having a sales tax.
Ease of Use
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Delaware is said to be the most business-friendly state in the Union. The ease and speed of filing and lack of extensive regulation or hurdles to do business make this possible.
Residence
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It is not required to reside in the state to form a Delaware corporation. A "registered agent" is all you need to form a corporation in this state.
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