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Case Study Delaware

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Incorporate in Delaware New business owners typically decide to form their corporation in their home state. This may work out; however, it’s common to receive correspondence from other businesses in Delaware. Why do successful businesses decide to incorporate in Delaware? According to incorporate.com, Delaware’s the home state to over 65% of all fortune 500 corporations. Delaware’s lauded for their business friendly regulations and the lower tax thresholds available to LLC’s and C Corporations alike.
According to Delaware Intercorp, Delaware possesses a separate court system through their Chancery Court specifically for business-related trials. Chancery Court’s decisions have been based off long standing case law and respected Judiciary opinions. It’s noted that nationally, corporate attorneys understand Delaware’s corporate law. The large amount of …show more content…

Since decisions can be predicted, it’s easier for a corporation to decide between a settlement, or lawsuit particularly quickly.
The cost of incorporating in Delaware is as low as $89, and the annual franchise tax can be as low as $175. Delaware boasts low operating costs for a corporation. Delaware will not collect income tax for out-of-state corporations, as long as they do not conduct their business in Delaware; additionally, there is no tax on shares of stock for out-of-state residents, and one individual has the ability to act as every member on the board, if they decide. Shareholders aren’t confined to meetings, and can instead act via contractual agreements; also, Board members are not required to be shareholders of the

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