The Delaware Division of Corporations 2015 Annual Report has just been published and distributed by Rick Geisenberger, Chief Deputy Secretary of State and Director of Corporations.
Once again, Delaware’s dominance cannot be denied.
There is simply no better state in which to incorporate a company in the United States than Delaware.
No matter what type of company you’re thinking about forming—corporation, Limited Liability Company or Limited Partnership—Delaware is by far the best state in which to incorporate!
Think we’re exaggerating? Check out this data:
More than 178,000 entities were formed in 2015, a five percent increase from the previous record of 169,000 entities in 2014.
86% of all IPO’s in 2015 involved a Delaware General Corporation, such as Go Daddy, Shake Shack and Square.
66% of all Fortune 500 companies were incorporated in Delaware, a 58% increase since 2000.
And check out this staggering statistic:
The total number of legal entities formed in Delaware increased to 1,181,000 in 2015, a 38% increase since 2008.
Let’s break it down by types of business entities, shall we? Here are the numbers of new business formations in 2015:
LLCs: 128,042 (up from 121,592 in 2014)
LPs: 10,746 (up from 9,721 in 2014)
Corporations: 38,288 (up from 36,445 in 2014)
Statutory Trusts: 1,645 (up from 1,208 in 2014)
That’s not all, folks.
The general fund revenue collected by the Delaware Division of Corporations in 2015 hit $1 billion for the first time. One. Billion. Dollars.
But wait…there’s more!
There were also several positive changes to Delaware Business Entity Laws, including:
Legislation that forbids Delaware corporations from requiring shareholders who unsuccessfully sue the corporation to pay the company’s legal fees.
Exclusive forum clauses were approved, which let companies elect Delaware as the mandatory forum in which internal corporate lawsuits must be settled even if they are not Delaware companies.
The Delaware Rapid Arbitration Act gives companies around the world a “fast-track arbitration option to resolve business disputes.” The Delaware Rapid Arbitration Act puts time limits on any arbitration process so as to decrease both the time and money spent by Delaware companies on arbitration. It also proposes an opportunity for companies to avoid in-depth pre-hearing evidence in favor of a more time-efficient, less expensive solution to their disagreement.
An amendment to the Delaware Limited Liability Act was also approved. The amendment confirms that the “irrevocability of powers of attorney apply also to proxies.” The amendment also “confirms that the Delaware Secretary of State can issue public records in the form of photocopies or electronic image copies.”
Data doesn’t lie, ladies and gentlemen—Delaware is clearly the conquering hero of all the supposedly corporate-friendly states in the nation.
Disclaimer: Harvard Business Services, Inc. is a document filing service that provides general information. We cannot render legal or financial advice and your use of this site is subject to additional terms and conditions. HBS is not affiliated with Harvard University nor the state of Delaware.
Disclaimer: Harvard Business Services, Inc. is a document filing service that provides general information. We cannot render legal or financial advice and your use of this site is subject to additional terms and conditions. HBS is not affiliated with Harvard University.