Posts Tagged ‘Construction’

We Disclose the Top Hidden Financial Benefits to Opening Your New Company in Delaware

April 21st, 2022

It’s no secret why the US Chamber of Commerce has named Delaware as the state with the best business environment for 10 years running. With a long history of pro-business legislation and of providing financial incentives to Delaware-based corporations, the First State is the location of choice for over 60% of Fortune 500 companies as well as countless other small businesses looking for a low-tax environment with a high-quality business infrastructure.

In Delaware, the legislature takes business seriously–and for good reason. Deriving an important part of the state’s budget from incorporation and franchise fees, the state government is committed to preserving Delaware’s position as the location of choice for new businesses. In addition to the remarkably low cost of setting up a business in the state, Delaware’s legal environment has been recognised as the most business-friendly due to the existence of the Court of Chancery, a separate legal system for commerce. Because it is the home to so many major corporations, Delaware business law is familiar to attorneys throughout the world, meaning that finding competent council is possible nearly everywhere.

It is incredibly easy for businesses to choose Delaware as their legal domicile as there are very few legal obstacles. There are no residency requirements for either offices or staff, no capital investment is necessary and the filing fee is only $89. Once an application for incorporation is filed, a response is generally received with one week.

In addition to these attractive terms, the Delaware Office of Economy Development has established many programs to lure businesses to the state:

- Low interest loans and grants for new businesses

- Tax-exempt bond financing for certain entities

- Finance assistance for riskier-profiled businesses through the Delaware Access Program

- Tax incentives for businesses in targeted industries and locations

- No corporate income tax on businesses that do not do business in Delaware and a low flat rate of 8.7% for those that do, with a set maximum turnover of $180,000 annually.

- Low franchise taxes for all businesses, with most companies paying less than $75 annually

- Zero property, equipment or sales taxes

With all of these legal and financial advantages to opening a business in Delaware, the Diamond State may just be the right one to start your company in.

Additional Information for Delaware Entrepreneurs! Delaware has recently changed its application processes to make the creation of a new USA company even easier. There’s never been a better time to get your company formed, but an informed source has said that this window of opportunity is closing at some point soon, so these benefits won’t be hanging around for ever.