Did you know that when you’re ready to incorporate your business, you have options as to where your business will be incorporated? In states like Delaware, you’re not required to have a physical office there to register your company.
Many business owners choose to incorporate in Delaware due to its favorable business laws and tax structure. In fact, over 66% of Fortune 500 companies are incorporated in Delaware.
Keep reading to learn about the benefits of incorporating a business in Delaware and whether it’s the right move for your company.
1. Flexibility in Business Structure
Known as having the “most advanced and flexible business formation statute in the nation,” Delaware offers greater flexibility than many other states.
Unlike other states that may impose strict requirements on management structures, Delaware allows for:
- One individual to serve as the sole director, shareholder, and officer
- No residency requirements for directors or officers
- Customizable corporate governance structures
This flexibility can be especially beneficial for startups, small businesses, and entrepreneurs looking to streamline their management.
2. Enhanced Privacy Protections
Delaware provides more privacy to business owners than many other states. When filing incorporation documents:
- You are not required to disclose the names of officers or directors
- You must only provide your company name and the Registered Agent’s name and address
This privacy can help protect the identities of the individuals behind the company, offering peace of mind and reduced exposure.
3. Delaware Court of Chancery
Delaware’s Court of Chancery is a unique legal institution that specializes in corporate law. This court:
- Handles only business-related cases
- Has judges with deep expertise in corporate governance and commercial law
- Offers faster, fairer, and more predictable outcomes
While no business wants to end up in court, it’s reassuring to know that if legal issues arise, they’ll be handled by a court that understands corporate law inside and out. You can learn more about the Delaware Court of Chancery here.
4. Business-Friendly Tax Structure
Delaware is often considered a tax-friendly state for corporations. Key tax advantages include:
- No state corporate income tax for companies that don’t operate in Delaware
- Lower franchise and LLC taxes compared to other states
- No tax on intangible assets like trademarks and patents
For many companies, this tax structure can result in significant cost savings.
Thinking About Incorporating in Delaware?
If you’re considering incorporating your business in Delaware, Universal Registered Agents (URA) can help. We’ve assisted countless businesses through the Delaware incorporation process, and we’re here to make it easy for you.
Call us today at (855) 236-9172 to get started, or click here to order incorporation services online.
