The State of Delaware is a leading domicile
for U.S. and international corporations. More than 850,000 business
entities have made Delaware their legal home. More than 50% of all
publicly-traded companies in the United States including 63% of the
Fortune 500 have chosen Delaware as their state for incorporation.
Businesses choose Delaware for many
reasons. The Delaware
General Corporation Law is the most advanced and flexible business
formation statute in the nation.
Court of Chancery is a unique 215 year old business court that has
written most of the modern U.S. corporation case law. In addition:
- No minimum capital is required to form a Delaware corporation
- Corporate records can be kept anywhere in the world
- It is only necessary for one person to act an officer, director and/or share-holder of a
corporation or member of a limited liability
- No formal meetings are required and shareholders need not be U.S.
- Any legal business may be conducted in Delaware
- Delaware is recognized as having a favorable tax climate
- No Sales tax
- No Personal property tax
- No Intangible property tax
- No Stock transfer tax
- Ownership of a Delaware corporation or limited liability company is strictly
Delaware companies do not have to file an annual corporate income tax with
the state of Delaware "unless they have a physical presence in the
state." However, all Delaware based companies must be an annual
franchise tax or annual report to the Secretary of State of Delaware.
Regardless of the tax consequences, all US based corporations are required
to file annual Federal Income Tax returns
with the IRS, even if they are "informational purposes only".