Benefits of Delaware corporation

Delaware is a very popular place in which to form corporations. The benefits apply to large public corporations or those planning to go public. These don’t benefit smaller corporations. Keep in mind that if a corporation forms in Delaware and does business in another state, the corporation would be required to file additional paperwork, and pay any taxes and/or fees required to do business in that state. Delaware’s laws provide heightened protection for board members against lawsuits brought by shareholders, and Delaware has a court exclusively dedicated to resolving corporate disputes Given those factors, many smaller corporations keep it simple and form in the state in which they plan to do business.
Delaware’s laws are generally favorable to businesses, and, unlike other states, it has a separate Court of Chancery that hears cases involving corporate law. Chancery judges specialize in corporate law, and can decide cases relatively quickly, without the need for a jury. This, coupled with the large number of corporations that call Delaware home, means that Delaware has an unusually well-developed body of corporate law.
Setting up a Delaware Corporation has also been called a tax haven. It does not collect corporate taxes from Delaware corporation that do not do business in the state. It also does not tax royalty payments on “intangible assets.” These tax specifics in Delaware Corporation lead to substantial savings for C corporations.
If you need assistance with setting up a Delaware corporation see here CLG Professional Services

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Popular Posts

Share This

Share This