Delaware Adds Over 200,000 New Companies in 2018
By Brett Melson
Monday, August 5, 2019
Hot off the press, chock full of data and complete with what’s new in Delaware Corporate Law, the Delaware Division of Corporations’ 2018 Annual report explains why Delaware remains the “Corporation Capital of the World.” Always ahead of the trends, with laws that define the industry’s cutting edge, Delaware is the state where accountants, attorneys and business professionals from all around the world incorporate. Now you don’t have to read the entire newly released report to be in the know. We’ve compiled key highlights from the report so you can save time and stay informed.
Data from the 2018 Annual Report Tells a Powerful Story
- 67.2% of the Fortune 500 companies are incorporated in Delaware
- 82% of the Initial Public Offerings in 2018 were Delaware companies
- 216,005 new Corporations, Limited Liability Companies, Limited Partnerships, Limited Liability Partnerships, and Trusts were created in Delaware during 2018, up 8.8% from 2017
- There were 157,142 new LLC’s formed in 2018, an increase of 9.1% from 2017
- LLC’s accounted for 72.7 percent of all the formations
- 44,669 new Corporations were formed in 2018, an increase of 7.4% over the previous year
- Limited Partnership / Limited Liability Partnership formations increased to 12,432, an increase of 7.9%
- Almost 1.4 million entities are incorporated in Delaware as of the end of 2018.
Changes to Delaware Corporate Law in 2018 Keep Delaware at the Cutting Edge
- Limited Liability Companies have had the ability to have multiple series for a number of years now. Each series is treated as a separate entity, meaning the debts, liabilities, obligations and expenses of one series cannot be enforced against another series of the LLC, or against the LLC as a whole. Starting August 1st of 2019 Limited Partnerships will have this ability as well. We will expand on this in a blog at a later date.
- LLC’s and LP’s will have the ability to create a new and unique type of series LLC called the Registered Series LLC. A post on this will be coming soon.
- A Certificate of Division for an LP, has been created so that an LP formed in Delaware may split into separate entities. We will expand on this in a later blog post.
- Delaware now allows for the Public Benefit LP, which is like the Public Benefit Corporation that Delaware created in 2013, but with the management and ownership structure of the Limited Partnership. A Public Benefit LP requires a public benefit statement listed on the Certificate of Limited Partnership.
The Division of Corporations is the most important source of income for the tiny State of Delaware. The total revenue from franchise taxes, formation fees, certified copies of filings, Certificates of Good Standings and Uniform Commercial Code filings accounted for a staggering $1.3 Billion in the 2018-2019 fiscal year ending June 30th. To view the complete Annual Report from Delaware click here.
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE'S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.