Attractive Features of Incorporating in Delaware

Are you thinking of incorporating your business? Do you wanna know the benefits of incorporating in Delaware? Read on the article below entitled Deciding Which State to Incorporate Your Small Business in written by Jacob Wren. 

There are advantages to incorporating in different states with regard to corporate laws and tax structure. Delaware is by far the most popular state for incorporation. Most of the fortune 500 companies are incorporated in Delaware.

Some of the most attractive features of incorporating in Delaware include:

1. Lack of corporate income tax for corporations incorporated in Delaware but not transacting business in the state.

2. Delaware has a separate corporate law system that uses judges appointed for their knowledge of corporate law as opposed to juries, whose knowledge of corporate law is limited at best.

3. Shares of stock owned by persons outside of Delaware are not subject to Delaware taxes.

For a small business deciding weather or not to incorporate in Delaware it is necessary to measure the cost of qualifying as a “foreign corporation” in the state of operation versus the amount that will be saved by incorporating a small business in Delaware. Typically it is not advantageous for small businesses to incorporate outside of their home state as even small businesses are usually required to pay corporate taxes in both the state of foreign operation and the state of incorporation.

To read the full article, click Deciding Which State to Incorporate Your Small Business In written by Jacob Wren

Wanna learn more? Read on Requirements for Incorporating in Nevada