Wilmington, DE, October 16, 2008 --(PR.com
)-- www.thedelawarecompany.com/why_delaware.aspx – The Delaware Company, a leader helping entrepreneurs incorporate businesses in Delaware, today announced that advantages to forming new businesses in Delaware continue, despite economic downturn.
Entrepreneurs don’t have to be a Delaware resident or have a physical presence in Delaware to incorporate in Delaware
and enjoy the many advantages of Delaware formation, according to Mark Williams, Operations Manager of The Delaware Company. There are at least six compelling reasons why entrepreneurs may want to form their company in Delaware, even if their business is physically located in another state:
Cost. To attract formations, Delaware offers very low state filing fees as compared to other states. The state fee for Delaware incorporation is $89. This compares to $275 in Massachusetts and $300 in Texas.
Speed. A sizeable portion of Delaware’s economy is based on corporate filings. It has a very efficient state infrastructure. In most cases, you can file your incorporation documents and form your new corporation within 24 hours. In other states, this process could take weeks.
Tax Advantages. Corporations and LLCs typically pay very minimal taxes to Delaware since there are no state corporate income taxes for companies that were formed there but are doing business outside of the state. Each year Delaware corporations are subject to an annual franchise tax, which is based on the number of shares outstanding, and can be as low as $75 for corporations. Also, non-residents are not subject to personal income taxes. This means that the shareholders of a corporation will not need to worry about filing a separate tax return in Delaware.
Corporate Legal Advantages. Delaware’s large body of business law helps companies minimize the risk of lawsuits. Should a company be served with litigation, Delaware’s Court of Chancery focuses solely on judges that specialize in corporate law, as opposed to most other states that use juries of one’s peers.
Simplicity. As most companies expand and grow beyond their local boundaries, maintaining corporate records for multiple entities in multiple states becomes a complex administrative burden. Choosing one business jurisdiction, like Delaware, for domestic business formation simplifies recordkeeping and makes compliance easy. Unlike many other states, Delaware annual reports and franchise taxes are due on the same day every year.
Credibility. As a new organization gets off the ground, many prospective customers question its staying power. By forming a corporation, you send a signal to your target market that you are a serious business that plans to grow and expand.
"The limited liability protection that operating a new business as an LLC or corporation offers has never been important," said Williams. "Incorporating in Delaware provides this protection and additional benefits that entrepreneurs need to consider."
Form a Delaware corporation today: http://www.thedelawarecompany.com/why_delaware.aspx
About The Delaware Company
The Delaware Company, a Delaware incorporation expert, focuses on doing one thing and one thing only—forming Delaware LLCs (limited liability companies) and Delaware corporations efficiently. By focusing on Delaware incorporation services, The Delaware Company has earned the reputation as the trusted leader in Delaware LLC and Delaware incorporation formation.
The Delaware Company is a part of Wolters Kluwer, a leading multinational publisher and information services company. Wolters Kluwer has annual revenues (2007) of €3.4 billion, maintains operations in over 33 countries across Europe, North America, and Asia Pacific and employs approximately 19,500 people worldwide.