Delaware's Corporate Laws
Delaware, you might have heard it said, is the Promised Land for businesses. It is a state that has become so friendly to business entities that businessmen from all over the United States as well as the globe have made their way to Delaware and registered their business there. In particular, businessmen are lining up to get their businesses incorporated in Delaware.
Currently, there are about 700,000 business entities (including Major corporations) that are registered in Delaware. Around 100,000 new businesses register in Delaware every year. In fact, there is around 20 percent average increase in the number of business entities that are registered in Delaware.
What drives this apparently massive exodus of businesses from all over America and the world to Delaware? Two reasons stand out: low cost of incorporation AND clear, fair as well as favorable Delaware corporate laws.
Cheap Delaware Incorporation How much does incorporation cost in Delaware? Well, if you have more or less $200.00 then you have your basic incorporation fees covered. This will pretty much cover your filing fees. This amount should be enough to include your state fees and the first year fee of your registered agent. The government basically requires a minimum filing fee of $89.00. However, this amount varies with the number of shares of stock and the par value of each share. If you want expedited services, however, you may have to pay more than that. A thousand dollars extra, for instance, is required for a decision in one hour. Two-hour, same-day and twenty four-hour expedited services are also available. If you are hiring a company to provide you with Delaware incorporation services as well as an attorney to help you with legal matters, you have to allocate extra money for these extras. Good Delaware Corporate Laws The government of Delaware has also been actively promoting the state as a haven for corporations and other business entities. All branches of government - the executive, legislative and judicial branches - have been reformed to achieve this. For one, government agencies that are devoted to facilitating incorporation have been established; primary among them is the Division of Corporations. In Delaware, moreover, corporations have access to a special court so litigation and disputes that involve corporations can be resolved quickly and efficiently; this court has only corporate cases in its docket. State legislation also reflects the state's commitment to business formation. Business entities that register in Delaware are given favorable tax treatment. Delaware does not also discriminate against non-residents and non-Americans. To make filing a request for incorporation even easier in Delaware, most of the incorporation services have been brought online.
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