Tax Benefits Of Delaware Incorporation
The country's corporate capital -- this is how Delaware is known. It is the state that is favored by almost every corporation in the United States. It is the proud residence of more than 600,000 corporations registered in the whole of United States. It is not surprising, therefore, that more and more people are jumping into the bandwagon and incorporating their businesses in Delaware. Incorporation state regulations in Delaware, after all, are some of the finest in the country and perhaps the world.
Incorporating in Delaware
Corporate laws and requirements in Delaware are flexible, reasonable and easily satisfied. For instance, corporations that will not operate in Delaware may still be incorporated in this state. The corporation may even have a non-Delaware address. One person can be named the only director in a corporation as well as be the only executive officer in the company; a single person can therefore set up a corporation and become its President, Secretary and even Treasurer. The citizenship of this person isn't even important. Of course, if you are not intending to set up an office or operate in Delaware, you'll need a registered agent to represent you.
Delaware is also not strict about startup corporations' funds. A Delaware corporation need not open and maintain a bank account in Delaware; one also need not have millions of capital to get his incorporation request approved. Incorporating and Operating a Business in Delaware If you are incorporating a business that will operate within state borders, then slightly different rules apply. For one, you can represent yourself and become your own agent. Of course, in this case, you will have to obtain a Delaware business license (and a city license when applicable). Minimal Obligations Corporations in Delaware enjoy a lot of tax benefits. They are not obliged to pay corporate income taxes. They are not required to pay sales taxes or property taxes. The tax liabilities of corporations are limited to their annual franchise tax, if any, and the annual report filing fee. Government Agencies for Corporations The Delaware state has created agencies that are devoted to assisting corporations in their operations and disputes. For one, it has created the Delaware Court of Chancery which is considered as one of the best courts in the country. It is a special court since it handles only corporation-related cases. As such, it has the capacity to quickly resolve corporate disputes. Delaware has also created the Delaware Division of Corporations which expedites incorporation in the state. In fact, if you opt for quick incorporation, you can have your corporation set up in a few hours.
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