| ADVANTAGES OF OPERATING IN DELAWALRE These are some of the advantages of an entity in Delaware
Why incorporate in Delaware? The initial charge for incorporating in Delaware can be as low as $89.00. The annual franchise tax can be as low as $60.00 in many cases. The cost of continuing operations is low as well. There is no Delaware corporate income tax for corporations that are formed in Delaware so long as they do not transact business in Delaware. There may be significant federal tax advantages to incorporating as well. Shares of stock in Delaware corporations are not subject to Delaware taxes if the owner lives outside the state. One person may act as President, Treasurer, Secretary and sole director
• Different kinds of business can be transacted under one corporate roof.
• Shareholders can act in writing instead of holding meetings.
• You can add people to the board who are not shareholders.
• Corporate records need not be kept in Delaware.
• One person can act as the only officer, director and shareholder of a corporation.
• No Delaware income tax is charged to companies that do not do business in Delaware.
• Delaware has no sales or personal property tax.
• Low franchise tax, $60.00 in many cases. $200.00 for LLCs Delaware Taxes.
Some mistakenly believe that Delaware's preeminance is related to the fact that Delaware charges no income tax to corporations not operating within the state. However, in this respect Delaware is no different from other states, as no state charges income tax on out-of-state income. However, Delaware does levy a franchise tax on corporations incorporated in it. Franchise taxes in Delaware are actually far higher than in most other states which typically charge little or nothing beyond corporate income taxes on the portion of the corporation's business done in that state. For instance, Nevada does not have a franchise tax. Delaware's franchise taxes supply about one-fifth of its state revenue. You do not need an attorney to incorporate in Delaware.
Delaware law does not require that an attorney be involved in any phase of the incorporation process; however, if you are in need of legal advice, you should contact an attorney concerning legal matters. The Delaware Division of Corporations acts solely in an administrative capacity and does not provide legal advice Many companies have incorporated in Delaware
Businesses choose Delaware for a variety of reasons because they provide a complete package of incorporations services. The Delaware General Corporation Law is the most advanced and flexible business formation statute in the nation. The Delaware Court of Chancery is a unique 210 year old business court that has written most of the modern U.S. corporation case law. Delaware's State Government is business-friendly and accessible, and their Division of Corporations is a model state-of-the-art efficiency with a staff providing prompt, friendly and professional service to clients. These factors have all contributed to making Delaware a premier legal home to companies around the world You do have to live in Delaware to have a Delaware corporation
However, Delaware law, like most other States, requires every corporation to have and maintain a Registered Agent in the State who may be either an individual resident, a domestic corporation, or a foreign corporation authorized to transact business in Delaware whose business office is identical with the corporation's registered office. If you are planning to incorporate in Delaware
Before incorporating in Delaware, famliarize yourself with state laws. See Delaware Corporation and Business Entity Laws for a comsplete understanding of the legal side of Delware Corporate Law. Series LLC
Delaware is one of six states that have authorized theformation of Series LLCs. These individual LLCs with a series of "cells" , "baskets" or "series," provide a unique, if yet unproven, opportunity at asset liability protection. Comparisons between Delaware, Wyoming and Nevada
• No state corporate income tax: Wyoming, Nevada
• No tax on corporate shares: Delaware, Wyoming, Nevada
• No franchise tax: Wyoming, Nevada
• Minimal annual fees: Wyoming
• One-person corporation is allowed: Delaware, Wyoming, Nevada
• Stockholders are not revealed to the State: Delaware, Wyoming, Nevada
• No annual report is required until the anniversary of the incorporation date: Wyoming
• Unlimited stock is allowed, of any par value: Delaware, Wyoming
• Bearer stock can be used: Wyoming, Nevada
• Nominee shareholders are allowed: Wyoming, Nevada
• Share certificates are not required: Wyoming
• Minimal initial filing fees: Wyoming
• No minimum capital requirements: Delaware, Wyoming, Nevada
• Meetings may be held anywhere: Delaware, Wyoming, Nevada
• Officers, directors, employees and agents are statutorily indemnified: Wyoming, Nevada
• Continuance procedure (allows the State to adopt a corporation formed in another State): Wyoming
• Doesn't collect corporate income tax information to share with the IRS: Wyoming, Nevada | |
