Right now, more than 500,000 businesses are legally formed in Delaware, including over 50% of American publicly traded companies and 60% of the Fortune 500.

You may have heard about the advantages of Delaware corporations.  This state had an increase in corporate formation in the past because their laws were liberal compared to many other states. 

 Recently, however, most states have loosened up on their incorporating regulations, so for most entities, it isn’t particularly useful to file in Delaware compared to other locations.

 You have to first investigate the state in which you live or plan on doing business.  If you live in California, for instance, you might save money by incorporating in Delaware as long as you aren’t actively doing business in California.

 Or, if you live in an area that has high income taxes, such as New York, then you might be able to save money on taxes by having a local corporation pay its profits to a Delaware corporation, which won’t have to pay Delaware income tax if it isn’t operating business in Delaware.

 Some businesses find that Delaware is an attractive place to incorporate because of the legal platform they offer.  They have a separate business court, called the Court of Chancery, which does not use juries. 

 Delaware’s General Corporation Laws, in which a judge’s decision is filed as an opinion, allow it to be a corporate-friendly environment if lawsuits are a thing you might be concerned about in the future.  Other states that offer business-friendly courts are Arkansas and Oregon.

 The cost to incorporate in Delaware is very low compared to other states.  It can be as low as $89 to file in Delaware and the annual franchise tax can be as a low as $60.

 You need not hold live meetings in Delaware, but shareholders can conduct business in writing instead, and you don’t have to keep records in Delaware.  As in Nevada, you can have board members who are not shareholders.

 Some states require more than one person to register a corporation.  In Delaware, a single person can hold the titles of officer, director, and shareholder.