What are the advantages of being a Delaware corporation?
Delaware is one of the most popular states for incorporation, due to favorable treatment of businesses within the state. In fact, over 60% of all fortune 500 companies in the U.S. are incorporated in the state of Delaware.TaxesCorporations in the state of Delaware don’t pay state taxes if they aren’t conducting business in Delaware. In addition, Delaware doesn’t levy intangible property tax, sales tax, or personal property tax against corporations within the state.CapitalWhen incorporating in Delaware, there’s no minimum capital requirement placed on the company. Conversely, most states require a minimum capital investment of $1,000 to form a corporation.OwnershipDelaware permits the formation of single-owner corporations. In Delaware, a single owner is allowed to act as shareholder, director and officer. Other states may require at least three individuals to form a corporation.Ease of FormationForming a corporation in Delaware is made easier by the administrative processes in place. D
Justice image by MVit from Fotolia.com jQuery(document).ready(function(){ jQuery(‘#jsArticleStep1 span.image a:first’).attr(‘href’,’http://i.ehow.com/images/a06/gg/b0/advantages-being-delaware-corporation_-1.1-800X800.jpg’); }); There are advantages to filing legal corporate papers in Delaware Delaware is one of the most popular states in which to incorporate. Over 50 percent of corporations that trade publicly on stock exchanges and over 60 percent of Fortune 500 corporations incorporate in Delaware. There are several reasons why corporations choose Delaware as their state of choice for incorporation. Low Costs Delaware offers low costs to incorporate. In recent years several states have lowered their filing fees to be more competitive with Delaware. Even so, Delaware ranks among the 25 percent lowest in filing fees compared to other states. In addition to low filing fees, legal fees concerning corporate issues are often lower in Delaware than in other states. The legal fees are lower
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