Why Incorporate in Delaware | Delaware Corporate Services

What Delaware Doesn't Have

State income tax on income earned outside Delaware
Sales tax
Inventory tax
Tax on intangible assets (trademarks, patents, royalties)
Gross receipts tax
Public disclosure of LLC member or manager names
Minimum capitalization requirement

What Delaware Has

Court of Chancery — the world's most respected business court
130+ years of consistent corporate case law
Complete privacy for LLC members and managers
Charging order as the exclusive creditor remedy
Maximum flexibility in operating agreements
Unlimited stock authorization, any par value
Series LLC and Delaware Statutory Trust structures
Meetings may be held anywhere in the world
International credibility for banking and contracts
VC and institutional investor preference

Investor-Ready by Default

Delaware C-Corporations are the standard for venture-backed companies. Investors expect it; many require it as a condition of investment.

Pro-Management Legal Environment

Delaware case law generally favors management discretion. Directors and officers have broad latitude. Minority disputes are resolved in predictable, consistent ways.

International Recognition

Delaware entities are trusted in international banking, real estate, and commercial contracts worldwide. Foreign investors from every country specifically request Delaware entities.

Intangible Asset Tax Efficiency

Delaware holding companies can legally own trademarks, patents, and licensing agreements. Operating companies in other states pay royalties to the Delaware holding company — a common and legal strategy used by Fortune 500 companies for decades.

Predictable Annual Costs

Delaware LLCs pay a flat $300 annual franchise tax with no annual report required. No gross receipts calculation. Corporations pay $225+ and we calculate the most favorable method for you.

Start Your Delaware Entity →