About two-thirds of American companies are incorporated in Delaware, attracted to the small, mid-Atlantic state by its sophisticated legal system. But a series of highly technical rulings...
Cleanster.com, a platform for finding cleaning services for homes and short-term rentals, is incorporated in Delaware despite both co-founders being based in Montreal, Canada. “When you...
[4] Over half of all publicly traded corporations listed in the New York Stock Exchange (including its owner, Intercontinental Exchange) are incorporated in Delaware. The statute has been...
The state offers some tax benefits. Delaware doesn't impose income tax on corporations registered in the state that don't do business in the state. Also, shareholders who don't reside in Delaware need not pay tax on shares in the state. For these reasons, Delaware is sometimes referred to as a tax haven. There is a corporation court. Delaware has a Court of Chancery, which handles only corporation cases. The judges are experts in corporate law, and the decisions from the court tend to be more predictable than those in other states. ...
Topics Covered ; Featured Municipality · New Castle County · Kent County · Sussex County
Key Takeaways ; The benefits of incorporating in Delaware generally favor large public corporations with thousands of stockholders. ; If you are seeking outside funding for your startup, Delaware incorporation may be required by VCs or angel investors. ; For smaller, privately held companies, it is generally more efficient to incorporate where your main office is located.
But if you’re a small business considering registering your LLC there, it’s worth knowing those benefits primarily apply to large corporations and venture capital-backed startups. ; In this article, we’ll cover why over 60% of Fortune 500 companies are incorporated in Delaware and why registering in your home state may be better for small business owners. ; Delaware incentivizes incorporation with perhaps the most favorable business tax structure in the US. For instance, the state does not tax stock shares owned by non-Delaware residents, providing an incentive for VC-backed startups and companies going public to incorporate there.
File your incorporation paperwork in minutes · Tell Atlas about your company and co-founders in a simple, guided workflow, then generate and sign legal documents in a few minutes. Atlas submits incorporation paperwork to Delaware on your behalf. Your start-up checklist, automated · With a few clicks, use Atlas to incorporate, get your EIN, issue equity, and file your 83(b) tax election: no phone calls, faxes, or trips to the post office needed. Trusted by experts and loved by founders · At...
Potential Advantages of Incorporating in Delaware: Venture Capital Firms and Angels prefer Startups incorporated in Delaware · Venture capital firms typically require startups to be a Delaware corporation before they provide funding. VC firms and angel investors are generally more familiar with Delaware corporate law ; More predictable outcomes in law disputes from many past cases · The high volume of corporate cases in Delaware means there are likely several similar cases where advisors can look for precedents, rulings on past cases, and cre ...
Musk's X post comes after a judge in Delaware, where Tesla is currently incorporated, voided the $56 billion pay package granted to the billionaire in 2018.