Why People Incorporate their Business in Delaware Even Though They Don’t Live There

Delaware is a small state with a population of just over 950,000 people. However, it is home to over 600,000 businesses, making it the most popular state for business incorporation in the United States.

There are several reasons why people choose to incorporate their businesses in Delaware even though they live in other states.

• Delaware has a business-friendly legal environment. The state has a long history of corporate law and its courts are known for their expertise in business matters. This can be important if your business ever gets involved in a legal dispute.
• Delaware has low taxes. The state has no corporate income tax and its personal income tax is relatively low. This can save your business money on taxes.
• Delaware has a strong corporate secrecy law. The state’s corporate law allows businesses to keep their ownership and financial information private. This can be important if you want to protect your privacy or if you are raising money from investors.

Of course, there are also some cons to incorporating in Delaware.

• It can be expensive. The filing fees for incorporating in Delaware are higher than in some other states.
• It can be time-consuming. The process of incorporating in Delaware can be more complex than in some other states.
• You may need to travel to Delaware. Some of the paperwork involved in incorporating in Delaware must be filed in person. This can be inconvenient if you live in another state.

Ultimately, the decision of whether or not to incorporate in Delaware is a personal one. There are pros and cons to consider, and the best decision for you will depend on your specific circumstances.

Here are some additional things to consider when deciding whether or not to incorporate in Delaware:

• The type of business you are starting: Some businesses, such as corporations and limited liability companies, are required to be incorporated in a particular state.
• Your personal circumstances: If you live in a state with high taxes, incorporating in Delaware can save you money.
• Your future plans: If you think your business may expand to other states, incorporating in Delaware can make it easier to do so.

If you are considering incorporating your business, it is a good idea to speak with an attorney to discuss your specific situation and to get professional advice.