FREQUENTLY ASKED QUESTIONS

FAQs

 

Why incorporate in Delaware?

Incorporating in Delaware offers many advantages. These advantages include modern and flexible corporate laws, a business-friendly government, a highly-respected Judiciary and legal community, and corporate tax benefits.

  • Delaware General Corporation Law is one of the most advanced and flexible corporation statutes in the nation.

  • Delaware has a Court of Chancery, which handles only corporation cases. Here the judges are experts in corporate law as well as flexible, responsive, focused and efficient. Delaware’s courts also offer a number of options for dispute resolution outside of litigation.

  • The state legislature takes it role seriously in keeping the corporation statute and other business law current.

  • The office of the Secretary of State operates much like a business rather than a government bureaucracy and is customer oriented, providing prompt and efficient service.

More than one million business entities take advantage of Delaware's complete package of incorporation services, including the majority of America’s Fortune 500 companies.

Do I have to live in Delaware?

No. Delaware law requires every corporation to have and maintain a registered agent within the State. They may be an individual resident in the State whose business is identical with the corporations registered office, or a domestic corporation, or a foreign corporation authorized to transact business in the State.

What is a registered agent?

A registered agent is your representative in the State of Delaware. This person can handle the entire incorporating process for you.

Must I use an Attorney to incorporate?

No, but you should contact an attorney concerning legal matters. Corporate Holding Services, Inc. acts in an administrative capacity only.

DO Investors PREFER DELAWARE?

If you're going to look for angel investors or venture capital, know that most of these prefer you incorporate in Delaware.

WHAT ARE THE TAX BENEFITS?

Delaware does not impose income tax on corporations which do not do business in the state. If you have a corporation registered in the state that does business elsewhere, your taxes will be limited to your Annual Franchise Tax or Annual Corporate Tax. Shareholders who don't reside in Delaware need not pay tax on shares in the state.