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Old 05-02-2005, 06:29 PM  
jonesy
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Here's why Delaware is the preferred state for Incorporation


Corporations and LLCs, large and small, domestic and foreign, choose Delaware for their corporate headquarters, even though few have any sales or manufacturing facilities located in the state. Delaware, the second smallest state in the nation, is the home of nearly 60 percent of the companies listed on the New York and American Stock Exchanges and more than half of the Fortune 500 firms. Many international companies interested in doing business in the United States and in other jurisdictions worldwide choose Delaware because of its favorable corporate law structure, stability, and reputation as the "American Corporate State."
It's easy to form a Delaware corporation or LLC by phone, fax or mail. American Incorporators can check and reserve your preferred corporate or LLC name within minutes and form your new Delaware corporation or LLC that same day.

The cost to incorporate in Delaware is less than in any other state. American Incorporators can incorporate your business in Delaware for as little as $149.00.

There is no minimum capital investment required to form a corporation or LLC in Delaware. While other states require an investment of $500 or more, there is no capital investment required in Delaware.

One individual can hold all the corporate offices, including president, treasurer and secretary, in a Delaware corporation. Other states may require different individuals for these offices.

Delaware corporations have a special "director shield" that shelters directors from personal liability related to their actions as board members. Delaware statutes also limit hostile or abusive takeover tactics.

Delaware corporations and LLCs can be operated anonymously with the state never knowing the owner's identity.

The bylaws of Delaware corporations can be formulated or changed at any time by the directors.

Delaware is the only state with a special court system dedicated to corporate law. Through the years, the Delaware Chancery Court has built an unsurpassed body of case law that is often cited as precedent in other state courts. The court has a history of pro-management decisions, and often the outcome of legal actions is predictable.

The corporate headquarters and the records of Delaware corporations can be located in any state or country as long as you maintain a registered agent to represent you in Delaware. Many owners of Delaware corporations have never set foot in Delaware.

There is no Delaware sales tax, property tax or state income tax for corporations and LLCs formed in Delaware that do not transact business within the state.

Delaware's annual corporation franchise tax is as low as $30 plus a $30 filing fee (for LLCs, the annual tax is a flat $200). These annual state fees are kept among the lowest in the nation to attract and maintain corporate business.

There is no Delaware inheritance tax on shares of stock held by nonresidents.

Delaware corporations can pay dividends from profits as well as from surplus.

Properly registered stock of Delaware corporations can be privately owned or publicly traded on any stock exchange in the world.

Delaware corporations and LLCs do not need to maintain a Delaware bank account or Delaware business address as long as you are represented by a registered agent, such as American Incorporators. Currently, over 300,000 companies are registered in Delaware, and few of their officers have ever visited the state.
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Last edited by jonesy; 05-02-2005 at 06:31 PM..
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