Why do a majority of Corporations Incorporated in Delaware?
Answer:
Flexibility and the court's consistency interpreting law. Go to this link: Incorporate in Delaware: http://www.delawareintercorp.com/why.htm.
Taxes, but you know that.
Tax Credits
Because it is much cheaper than anywhere else. In California, for example, it may cost up to $900 to incorporate.
Big advantage of Delaware: predictability of litigation.
Delaware has a lot of corporations and there have been many lawsuits settled in Delaware. So corporations have a good idea what the precedents are and what will happen in court.
Predictability in legal matters is a vital business planning tool, and this is the reason Delaware is the state where so many corporations are incorporated.
For some reason, Delaware has tax laws that are very favorable for corporations. In other words, by incorporating in Delaware, many corporations can get away with little if any state taxes, even though the federal taxes are the same. For that reason, corporations save a lot of money by incorporating in Delaware.
According to their web site:
Businesses chose Delaware not for one single reason, but because we provide a complete package of incorporations services. The Delaware General Corporation Law is the most advanced and flexible business formation statute in the nation. The Delaware Court of Chancery is a unique 210 year old business court that has written most of the modern U.S. corporation case law. Delaware's State Government is business-friendly and accessible. Our Division of Corporation is a model state-of-the-art efficiency and our staff provides prompt, friendly and professional service to clients, attorneys, registered agents and others. These factors have all contributed to making Delaware a premier legal home to companies around the world.
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