and IS IT RIGHT FOR YOU?
Delaware has built a solid reputation as a corporate haven. There are over a million entities organized (or incorporated) there and much of the state’s revenue is derived from corporate tax and franchise fees.
But what’s so special about Delaware? Let’s explore three advantages to a Delaware venture. Still got questions? Don’t worry, we’ve got answers.
ANONYMITY
Delaware doesn't provide free online access to certain corporate information, like the identity of its owners, managers, or the company's street address. This protection of personal information may be critical to some entrepreneurs, or to those wishing to maintain their privacy.
COSTS AND EFFICIENCY
It's cheap, fast, and easy to form a Delaware entity. They've been at this for decades so their State Department is incredibly efficient. Need a corporation in a few hours? They can do it. They even have expedited services (for an extra cost) and an incredible team of professionals ready to help.
LEGAL CERTAINTY
80% of IPOs in 2017 were undertaken by Delaware corporations. This means that Delaware courts interpret and assess corporate law on a daily basis (almost). This amount of jurisprudence provides certainty- we know how Delaware courts feel about almost every issue (in corporate law) so we can make informed business decisions. Check out what the Delaware Department of State has to say about this.
DRAWBACKS AND CAVEATS
But there are drawbacks, of course. If your business doesn't actually operate in Delaware, you'll have to "qualify" your entity in your home state (or face penalties). This might mean paying taxes or franchise fees in two separate states. Is it worth it? Depending on your objectives, it certainly can be. As an alternative, Florida can be a great place to incorporate and run your business. This is how and why.
Still got questions?