The Delaware Advantage / Disadvantage

The Delaware AdvantageWith 65% of the Fortune 500 incorporated there, Delaware is a state synonymous with business. Delaware has an extremely well established body of law, does not seek to tax income earned in other jurisdictions, has an excellent, informed business court in its Court of Chancery and is very pro-business. If privacy is important to you, Delaware requires less information about the founders of a corporation than other states. For all these reasons, Delaware corporations are a known commodity in business circles (particularly banking) and are always well received. Recent global initiatives have seen the state of Delaware investing in encouraging Delaware businesses to expand globally and do business abroad. Many non-US residents choose to form LLCs in the State of Delaware.

Annual fees are $300 per year and must be filed online. Remember though that if you are doing business in another state, you will probably need to register there. Please be sure to consult with your attorney or tax professional before choosing to incorporate in a state other than your home state, or the state in which you primarily do business.