
Frequently Asked Questions
- Which entity is best for me?
- What are state fees?
- How much stock do I need?
- Where do I get stock/membership certificates?
- Do I need a federal tax ID (EIN) number?
- How do I open my company bank account?
- When do I pay franchise taxes?
- Do I need to be registered to "transact business" in my home state?
More than 60% of Fortune 500 companies form in Delaware and the numbers continue to grow. Delaware is the first choice for business owners seeking privacy, asset protection, a pro-business environment, and the prestige that accompanies Delaware limited liability companies (LLCs) and Delaware corporations. A compelling array of benefits are available to Delaware business owners such as privacy, tax savings, convenience, and flexibility.
- Company ownership need not be disclosed to the State of Delaware.
- Company ownership transfers need not be reported to the State of Delaware.
- Delaware does not maintain public records of ownership.
- Delaware does not maintain a publicly available database of companies' management.
- The reporting and disclosure obligations imposed by the State of Delaware are minimal.
- Owners of Delaware LLCs and corporations receive limited liability protection.
- Owners' assets cannot be seized as a result of the LLC or corporate liabilities.
- Due to the privacy protection offered by Delaware, it is more difficult for attorneys to track business owners and owners' assets.
- Delaware imposes no income tax on either LLCs or S corporations.
- Delaware imposes income tax on C corporations only to the extent that income is earned in the state of Delaware.
- Delaware imposes a low franchise tax for small companies.
- Delaware imposes no tax on capital stock or assets.
- There is no sales tax in Delaware.
- There are no Delaware capital shares or stock transfer taxes.
- There is no state inheritance tax on stock held by nonresidents of Delaware.
- Delaware is one of the least expensive states in which to form an LLC or corporation.
- Delaware allows one individual to act as the shareholder, director, and hold all the executive offices.
- Delaware LLCs and corporations can be headquartered anywhere in the world.
- Aside from a registered agent address, owners are not required to maintain a physical address within the state.
- Company records do not need to be physically located in the state of Delaware.
- Stock can be transferred instantly and privately, without filing a public notice.
- You do not have to be a US citizen to form a regular Delaware C corporation or LLC.
- Delaware does not impose a minimum capital investment requirement for LLCs and corporations.
- Delaware's Secretary of State office offers a wealth of information for managing your LLC or corporate standing.
- Delaware LLCs and corporations offer generous protection (sometimes called indemnity) from personal liability.
- Unlike most other states, Delaware corporations can easily be converted into LLCs and vice versa.
- Delaware LLCs and corporations can be formed without coming to Delaware using an online incorporator like The Delaware Company.



