Company Incorporation United States of America (Delaware Company)
Delaware – Brief Description
Among the 50 states of the United States of America, the state of Delaware has emerged as the premiere LLC jurisdiction with approximately 25,000 LLCs being formed annually. The status of Delaware as the leading LLC domicile is linked in part to the important role played in the U.S. by the Delaware corporate legislation and its Chancery Court in the development of American corporate jurisprudence. The influence of the Delaware corporate regime is evidenced by the fact that more than half of the companies on the Fortune 500 list and of the companies listed on the New York Stock Exchange are domiciled in Delaware.
Advantages of Delaware Company Incorporation
01. Advanced and Updated Case Law
The Delaware Court of Chancery which is the oldest business court in America, uses judges instead of juries and maintains the most advanced and up-to-date case law, which corporate lawyers in Delaware rely on and refer to. This means that Delaware limited liability companies (LLCs) and corporation owners or shareholders are less likely to incur liability and proceed to litigation.
02. Tax Savings
There is no state income tax for Delaware corporations that conduct business out of state; no inheritance tax on stock held by non-Delaware residents; and no state sales tax on intangible personal property (such as royalty payments). Moreover, shares of stock owned by non-resident aliens are not subject to Delaware taxes.
03. High Level of Privacy
The State of Delaware allows the incorporation of a company without listing the names of the owners, which protects the owners' identities, personal information and privacy in general.
Owners of Delaware LLCs are not required to make the names and addresses of the LLC's members and/or managers a matter of public record. There are only two circumstances in which a Delaware Registered Agent would be compelled to reveal this information – in the event of a legal proceeding or at the request of a law enforcement.
04. Simplified Structure and Low Incorporation Cost
One person can hold all the positions, and function as the sole owner, of a corporation or LLC. Further, the cost to form a corporation or LLC in Delaware is one of the lowest in the world.
05. Accessible Electronic Database
The Delaware Division of Corporations permits certain Delaware Registered Agents to maintain a direct online connection to its electronic database, which allows online filing, search, timely registration and expedited service.