Benefits of Incorporating in Delaware

Delaware might be one of the smallest states in the union, but it’s number one when it comes to forming an LLC. A lot of people ask, “Why would I want to form my LLC in Delaware, I don’t even live there?” That’s the point! You don’t need to live in Delaware to register an LLC in the state, you don’t even have to visit. You don’t even have to live in the United States to register an LLC in Delaware, as long as you don’t reside in a restricted country such as Russia, North Korea, Syria, Cuba, or Iran. Incorporating in Delaware is the smartest move for new businesses looking to save.

Home to about 66% of Fortune 500 companies, Delaware is the leading state of incorporation in the United States. Don’t judge Delaware by its size, judge it by how many successful businesses register in the state, and the verdict is great. So, why do business owners prefer Delaware?

Taxes

Taxes are the dreaded word that no business owner wants to deal with. Luckily, Delaware has many benefits that lessen your tax burden.

• If your business doesn’t operate in Delaware, you don’t pay Delaware income tax. However, you must pay a $300 franchise tax every June 1st.
• If you don’t do business in the state, you don’t pay a sales tax either.
• LLC owners can choose to be taxed as a C-Corporation, S-Corporation, partnership, or sole proprietorship (if a single-member LLC), giving enhanced flexibility to business owners. This is a federal statute, not unique to Delaware.
• No taxes on intangible income like patent and trademark royalties. This is beneficial to companies that own intellectual property.
• If your LLC issues shares of stock, Delaware does not impose a tax on capital shares or stock transfers.

Keep in mind, you still have to fulfill your federal tax obligations such as federal income, self-employment taxes, and payroll taxes if you have employees.

Privacy

Delaware allows for a high degree of privacy. The names of the LLC members and managers are not required to be listed in the formation documents. The only information that needs to be provided is the name of the LLC and the name of the registered agent. A registered agent is a person or company who can accept mail and legal notifications on your behalf. A registered agent must be a resident of Delaware and there are plenty of Delaware-based companies that offer those services. As an added bonus, if you decide to utilize Opus Virtual Office’s location in Wilmington, DE, we can serve as your registered agent for no additional charge. If you decide to physically base your business in Delaware, it can act as its own registered agent, saving you and your business even more money.

The Court of Chancery

This Delaware court resolves all business disputes. The court’s seven judges are uniquely qualified in areas of business law and are known for quickly resolving issues, sometimes as short as 60-90 days. The court decides cases such as merger challenges, board compensation disputes, fiduciary duty claims, and records cases. If the court’s decisions are appealed, they are immediately sent to the Delaware Supreme Court, which resolves appeals expeditiously.

Choose Opus Virtual Offices for your Delaware Business Needs!

Opus Virtual Offices has a prestigious location in Wilmington, Delaware where you can set up your business address, receive mail, and hold meetings if you need to. As mentioned earlier, all Opus VO operated locations also provide registered agent services for no additional charge, saving you time and stress. Opting for a virtual office in Delaware through Opus VO gives you the exclusive advantage of a live receptionist committed to offering personalized, top-tier client service. Every point of client contact is carefully designed to resonate with your unique business objectives, supported by our wide range of administrative services.