Why you should Incorporate or form an LLC in Delaware
Have you considered taking the plunge and starting your own business? As an entrepreneur there are many elements to consider when making this commitment and investment. Choosing to incorporate the business or form an LLC is just one of them. According to the Delaware Division of Corporations, there were about 169,000 Delaware entities formed in 2014. This not only broke a record for the State, but it also serves as an indicator that the economy is recovering. In times of economic uncertainty, many individuals are not willing to take the plunge and start a business. As the economy continues to improve, businesses are more willing to take risks and step out with their services. When making the decision to incorporate or form an LLC, consider turning to The First State for the following reasons:
Related: Incorporate Your Business Through StartupNation
The Ability to Be a One-Person Corporation – As many entrepreneurs know, most businesses start with a small number of employees and grow in size as they gain revenue and market share. The State of Delaware caters to this situation and allows one person to fill all executive office roles such as president and vice president. It takes time and careful consideration to find the right individuals for these positions, and Delaware’s flexibility allows business owners to continue moving forward while searching for candidates to fill these positions.
A Beneficial Tax Structure – Sometimes when starting a business funds are limited. The State of Delaware offers a tax savings which is extremely attractive to entrepreneurs who may be low on funds when getting started. It is common knowledge that Delaware does not have sales tax, and in addition to this there is only an annual Delaware LLC Tax of $300. Also, if your business does not operate in Delaware, there is no state corporate income tax. These giant tax savings add up when there are other financial elements of the business that often demand attention.
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The Court of Chancery – In addition to the financial aspects of the business, it is also important to consider the legal elements of incorporating or forming an LLC. Delaware offers a very unique situation through the Court of Chancery, which interprets corporate law. Entrepreneurs can rest assured that they are in the hands of knowledgeable and experienced professionals, particularly related to the legal aspects of their business.
While incorporating or forming an LLC in Delaware is beneficial for a variety of reasons, the ability to be a one-person corporation, the tax savings and the Court of Chancery are all particularly valuable for entrepreneurs. For additional information and to learn more, consult with an expert today.
Located in Wilmington, Delaware, Advantage Delaware LLC has over 20 years of experience with forming Delaware business entities and managing Delaware Holding Companies. To learn more visit https://www.advantage-de.com or call 302-479-7764, or toll free 866-767-8600.
