Delaware Company Formation

Located on the Atlantic coast, halfway between New York and Washington D.C., Delaware is one well known for its ease in acquiring and maintaining an Inc. or LLC.

Anybody, resident or not, can easily incorporate in the state of Delaware.

More than half a million business entities have their legal home in Delaware including more than 50% of all U.S. publicly-traded companies and 59% of the Fortune 500 companies.

Your company must have a physical place of business and agent for service in the state in Delaware but this is something we provide as part of our resident agent service.

What options are available in Delaware?

Advantages of Delaware Companies

There is NO corporate income tax for corporations as long as you do not transact your business in Delaware. You can therefore effectively incorporate your business in Delaware, operate in another state or country, and pay no corporate income tax

There is NO sales tax if you are not operating within the state

You must pay an annual franchise tax but this is often just a $75.00 flat fee, or $250.00 for a LLC incorporation

And the tax benefits do not stop there; shares of stock are not subject to Delaware state taxes if the owner lives outside of the state.

One individual may act as the company president, secretary, treasurer, and sole director.

Business and occupational license tax rates range from 0.096% to 1.92%, depending on the category of business activity.

Delaware does not assess a state-level tax on real or personal property. Real estate is subject to county property taxes, school district property taxes, vocational school district taxes, and, if located within an incorporated area, municipal property taxes.

Gambling provides significant revenue to the state. For instance, the casino at Delaware Park Racetrack provided more than $100 million to the state in 2010.

In June 2018, Delaware became the first U.S. state to legalize sports betting following the Supreme Court ruling to overturn the Professional and Amateur Sports Protection Act of 1992 (PASPA).