There are many reasons why numerous companies have chosen to incorporate in Delaware than any other state. Learn more about these reasons by reading below.
Transforming your business into an incorporation gives you a lot of benefits that a typical company cannot avail. To name a few, incorporating your company provides you limited security to protect your personal assets from seizure done by your creditors. You can also arrange for a tax payment scheme that is most suitable for your company. But aside from considering incorporating your business, it is also important that you factor in the location of the incorporation. Choosing to establish a LLC in Delaware guarantees you of a safe and fast return of investment due to wide array of business opportunities this state offers.
Benefits of Incorporating in Delaware
The following are just some of the many advantages of incorporating in Delaware.
Flexible and business-friendly laws – Delaware state laws are business-friendly allowing all sorts of enterprises – from small scale to large scale – to start and grow their business in the state. Delaware also possesses the lowest rate of discrimination amongst employees and laborers giving investors the freedom and leeway to negotiate deals with workers. Overall, Delaware’s General Corporation Law is designed to give maximum flexibility to business owners while still protecting the rights of both the employer and employee.
No wildcard juries – In the event that your corporation is involved in a lawsuit, Delaware State laws ensure that your case is heard sufficiently and fairly as they do not employ juries but real judges. Thus, it is guaranteed that during the process of deliberating your case, there is no bias on the part of the court. This adds up to the feeling of security which makes Delaware the perfect location for incorporation.
Less chances for litigation – Since all lawsuits are documented and published by Delaware state courts, company lawyers can easily examine and analyze factors yielding any legal assaults, thus, avoiding further litigations in the future. Delaware corporation laws are among the most transparent providing safeguard for businesses against any potential lawsuits.
Incorporation fee is the cheapest of all – Delaware state government charges only $89 to file your incorporation. This is way cheaper compared to other states like California which imposes $100 filing fee on top of $800 annual franchise fees, New York’s $125 charge, and Texas with $300. It is so easy to incorporate in Delaware and in a few years’ time, the state will have one of the most diversified business sectors in the country.
Ultimate privacy – Delaware also values privacy of its corporations and so, when submitting your formation documents, there is no need to name your directors or officers; you leave their identities unspecified.
In incorporating your business, one of the biggest factors to consider is the volume of audience that is potential to patronize your products or services. But apart from that, it is also crucial that you decide where to incorporate your business as government laws play a very important role in operating your business. If you choose to advance your business into the next level, consider incorporating in Delaware and you will know why others are doing the same.