Advantages to Forming Your Business in Delaware

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By Dominic J. Balascio, Esq.
and Melissa L. Rhoads, Esq


Stability

Delaware corporation law is one of the most stable statutory schemes in the United States. The Delaware State Constitution states “[n]o general incorporation law, nor any special act of incorporation, shall be enacted without the concurrence of two-thirds of all the members elected to each House of the General Assembly.” This super majority provision makes it more difficult for legislature to enact any significant changes to the Delaware General Corporation Laws.  Thus, Delaware has a stable and long standing body of law.

Delaware has a highly specialized Court of Chancery with extremely knowledgeable and specialized judges.  The Delaware Court of Chancery has interpreted nearly every section of the Delaware General Corporation Laws. You can rely on this well established and predictable body of law and the courts continue to interpret the law in a consistent manner.

Delaware corporations are subject almost exclusively to Delaware law even when they do business in other states.

Delaware’s corporate statutes are the gold standard across the nation. Delaware’s statutory and judicial structure is trusted by over 900,000 business entities including 50% of all U.S. publically-traded companies and 63% of all Fortune 500 Companies make Delaware their home.

Ease of Incorporation

Delaware’s Office of the Secretary of State provides flexibility and convenience to all potential Delaware business. The Secretary offers electronic, as well as, in person filing which includes expedited services. In order to best serve potential businesses, Delaware provides the option to speak to customer service representa-tives via phone or live chat. Moreover, Delaware attorneys are readily available to help you incorporate.

Incorporation in Delaware is relatively inexpensive. The initial cost of incorporation can be as little as $89.00. Additionally, there is no minimum asset requirement in order to register, unlike most states that require $1,000.00 state capital.

Delaware is committed to protecting the personal privacy of corporate officers and directors. In Delaware, we do not require officer and director names to be listed on the formation documents. Thus, Delaware provides a level of anonymity. One person can serve as the officer, director and shareholder. This streamlines the registration process and results in both limit liability and tax benefits. Further, your local Delaware attorney can act as your incorporator in order to provide further anonymity

Long Term Cost Reductions

As a Delaware entity, you are only required to maintain a registered office within Delaware (which is not required to be the company’s principal place of business or its headquarters). Unlike many other states, a Delaware company need not conduct business within the state nor do the employees need to be Delaware residents. Delaware merely requires a registered agent, who is either an individual resident or business entity that is authorized to do business in the State of Delaware. The registered office and agent can be your local attorney’s office and your attorney.

Delaware truly provides the flexibility needed to conduct business in local, national and global markets. Delaware does not require corporate accounts be maintained within the State. Further, companies are not required to hold their annual shareholders meetings in Delaware. In fact, Delaware law allows annual meetings to be held anywhere in the world and provides shareholders the ability to utilize remote communications.

Conclusion

The above advantages are merely the tip of the iceberg. Delaware Corporate Law continues to “race to the top,” providing companies with a stable and cost effective business environment which nurtures shareholder equity. Are you considering creating a new business venture? Need assistance determine what type of entity fits your need? Would you like to learn how the Delaware business advantage applies to your entity? If you are looking to form an entity or further improve your current business organization, please contact us so we can discuss your needs.  Please feel free to contact Dominic J. Balascio, Esq. and Melissa L. Rhoads, Esq. at (302) 658-6400 or d.balascio@tighecottrell.com and m.rhoads@tighecottrell.com. Dominic J. Balascio, Esq. and Melissa L. Rhoads, Esq. are attorneys at Tighe & Cottrell, P.A. at 704 King Street, Suite 500, Wilmington, Delaware 19899.



Dominic J. Balascio, Esq. and Melissa Rhoads, Esq. are attorneys at

Tighe & Cottrell, P.A. at 704 King Street, Suite 500, Wilmington, Delaware 19899


If you have any questions or concerns, please feel free to contact Dominic J. Balascio, Esq. and Melissa L. Rhoads, Esq. at (302) 658-6400 or d.balascio@tighecottrell.com and m.rhoads@tighecottrell.com Dominic J. Balascio, Esq. and Melissa L. Rhoads, Esq. are attorneys at Tighe & Cottrell, P.A. at 704 King Street, Suite 500, Wilmington, Delaware 19899.  The firm offers many discounts for first-time homebuyers, personnel in the military, police, firefighters and educational professionals.

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