Delaware
- Capital: Dover
- Largest City: Wilmington
- State Abbreviation: DE
- Population: Nearly 705,000
- Sales Tax - 0%
- Income Tax - 6,6 %
- Corporate Tax - 8,7%
The Delmarva Peninsula in the northeast is largely occupied by Delaware and is surrounded on multiple sides by the Atlantic Ocean. To the north lies Pennsylvania, while Maryland is to the west and south. New Jersey is located to the east of Delaware. The state’s association with the Twelve-Mile Circle has contributed to shaping part of its state borders.
Delaware is sometimes referred to as the chemical capital of the world. A significant portion of the state’s economy heavily relies on chemical manufacturing, including pharmaceuticals, industrial chemicals, and plastics.
Establishing an INC in Delaware
Delaware has positioned itself as a preferred state for establishing businesses, primarily due to considerations of liability and asset protection. The state also offers a high degree of ownership privacy, an efficient legal system for business disputes, and property tax advantages.
However, other states have not been idle, and depending on your specific product or service, another state might offer more benefits. States like Texas and especially Florida have not only caught up over the last decade but now also boast a better business climate than Delaware.
An Inc. can be somewhat compared to a PLC (Public Limited Company) and has characteristics of a GmbH, Ltd, SARL, and AS. “Incorporated” is officially the English term for a Public Limited Company. Though not entirely comparable, an Inc is somewhat akin to an American private limited company. An Inc has one or more shareholders. As a Dutch or non-American person, you can be a shareholder. Some also choose to establish an LLC.
5 Advantages
Attractive to Investors
If a new company is seeking external investment funding from angel investors, venture capitalists, or private equity firms, incorporating in Delaware offers a favorable environment to attract capital. Investors are more likely to consider investing in your business due to Delaware’s business-friendly laws. Top investors and business people understand the Delaware system, and venture capitalists and investment banks often prefer companies based in Delaware.Business-Friendly Laws
Delaware has an established and highly respected Court of Chancery, dedicated solely to resolving business disputes such as real estate and commercial conflicts. The Court of Chancery ensures that business issues are swiftly resolved by a judge specializing in corporate law with experience in handling complex business disputes.Asset Protection
Delaware LLCs protect the assets of an LLC owner. Many startups create an LLC structure to shield their assets from lawsuits. Additionally, Delaware is one of the few states that allows a charging order as the sole remedy for collecting debts on single-member LLCs. In contrast, many other states treat single-member LLCs as disregarded entities, allowing collection agencies to pierce the corporate veil and pursue the personal assets of the sole member.Privacy Protection
Delaware LLCs are not required to include members’ names and addresses in their filings. Members and managers are only specified in the LLC’s operating agreement, which is inherently private. Therefore, ownership and management information is not recorded or available as public records. For asset protection, LLCs are generally the best choice. Companies can also file documents without listing their shareholders, directors, or officers in the public register when using an incorporation service by a third party.Tax Benefits
Delaware does not tax companies operating outside the state borders. This means you ultimately do not pay state taxes in Delaware if you do not have a physical office or conduct direct business within the state.
INC. Een bedrijf dat “Incorprated” is en voldoet aan alle wettelijke eisen. Universiteiten, zorg, (semi-) overheid en gemeentes werken eigenlijk altijd alleen samen met “Inc’s” gevestigd in de USA.
Establishing Your Own Delaware INC
Are you convinced and ready to have us establish your Delaware INC?
Ultimately, it all comes down to tailored advice. Where does your liability lie? What permits are necessary? What are the risks of things going wrong? Can you delegate parts to export agents or business partners? Are the owners Dutch or American? And what are the pros and cons of each?
It all starts with a personal discussion at a time that suits you best.
Is Delaware an Attractive Place to Live?
- Delaware is known for its pristine, clean, and family-friendly beaches, perfect for enjoying in your free time. Dewey Beach and Rehoboth Beach both consistently receive five-star ratings for their water quality, cleanliness, and access to amenities. During the warmer months, they can be busy, but in the off-season, you can often have these places largely to yourself.
- Whether you have a young family with toddlers or are about to send someone off to college, Delaware offers a diverse selection of high-quality private and public educational institutions. Options include the University of Delaware in Newark and Delaware State University in Dover.
- Buying a home in this state means you’re typically about 30 minutes from the coast, no matter where you live. Due to its central location, you can take advantage of the larger metropolitan areas along the East Coast of the United States. Most cities are accessible by train, allowing for daily commuting even over long distances.
What is a Delaware Flip?
How to Avoid the Flop!
What Is the Best Solution for You in Delaware?
We are happy to provide you with personal advice.
- Schedule a TEAMS video call at your convenience.
- Contact us by phone at +1 (786) 233-6384
- Or email us at: info@vanhollandgroup.com
