Why Delaware?

slimbim

Senior member
Apr 30, 2000
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Why is every big bank, big business deals and ordeals, big court activities based in Delaware?
 

linuxboy

Elite Member
Oct 9, 1999
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Why is every big bank, big business deals and ordeals, big court activities based in Delaware?

That is THE preferred state for incorporation for several reasons. First, their fees are pretty low. Second, they have been historically very quick to adopt new laws to benefit corporations (recall UCC). Third, their overall laws regarding corps are very business friendly and they really go out of their way to let corps have authority in making decisions. They are more laissez-faire.

Cheers ! :)
 

mithrandir2001

Diamond Member
May 1, 2001
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I know Delaware has no sales tax, but they probably have some tax-advantaged policies for coporations. If you look at a company's charter, it will often say they are a "Delaware Corporation", if even they are headquartered in California.
 

astriy

Senior member
Jun 11, 2001
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I'm getting my company incorporated in Delaware. I have a lawyer friend who's doing it for free. I think he said something about only a small business privilege tax, which we probably won't have to pay because we can write everything off. And there are no fees to register.