Written by CT in partnership with experts from the State of DelawareDeciding where to incorporate or form a business is no easy task. Several factors must be weighed before making your decision, such as location, state statutes, and tax requirements. But it’s important to also think holistically about the benefits your state of incorporation can provide and the ease of doing business moving forward. To that end, there’s one state with unique advantages that organizations turn to time and time again: Delaware.
Below are the top five advantages of incorporating in Delaware.
- World renowned business entity statutes
The Delaware General Corporation Law is one of the most advanced and flexible statutes in the nation. In addition to being corporate-friendly and business-oriented, it remains relevant by regularly updating laws that are out of date or confusing. Stability is the main focus, regardless of the political party in power. For these reasons, Delaware’s statutes are watched, copied, and respected by jurisdictions around the world.
- Unique court system
Delaware’s Court of Chancery is ideal for organizations looking to resolve legal issues justly and quickly. It is the only equity court in the United States, and has been devoted to business and corporate cases since 1792. Rather than a typical courtroom with a jury of peers, cases are governed only by judges – there are no jury trials and no punitive damage awards. The judges are appointed by elected officials and serve 12 year terms. Because their cases focus solely on business law, they are experts in the subject matter and decisions are made swiftly.
- Sizeable body of case law
Created by the Court of Chancery and the Delaware Supreme Court, the state’s case law is the largest and most comprehensive in the world. It is internationally recognized and respected with lawyers, judges, and corporations who use these court rulings for both guidance and predictability.
- Cutting edge legislature
Equally impressive, Delaware has a highly sophisticated legislature. It utilizes those who know corporate law best by seeking recommendations, review, and insight from the Corporation Law Section of the Delaware Bar Association. By tapping into those who work with these matters daily, Delaware’s legislature remains deeply relevant and is highly applicable.
- Focus on customer service
The Secretary of State’s Division of Corporations has a focus on customer service, with fair, flexible, and consistent staff. It offers unique services tailored to the needs of many busy corporations. The unmatched business hours, for instance, allow for any last-minute work to be completed up to midnight on most days of the week. For urgent matters, it has the fastest expedite service available with a 30 minute option (for an additional fee). A positive and productive customer experience is at the heart of this division, which makes doing business as an incorporated or formed entity in the state of Delaware that much easier.
With over 50% of publically traded U.S. corporations and over 65% of Fortune 500 companies incorporated in the state, surely Delaware is worth considering for your organization.