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:
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:
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:
Data doesn’t lie, ladies and gentlemen—Delaware is clearly the conquering hero of all the supposedly corporate-friendly states in the nation.
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.
There is 1 comment left for Proof Delaware Is The Most Corporate-Friendly StateIlya Zlatkin said: Wednesday, February 15, 2017
You're claiming that you have "Proof Delaware is the Most Corporate-Friendly State," and yet, absolutely nothing in this article proves that. Yes, it's the most popular. Yes, the State of Delaware gets a bunch of money from its business services. Neither of those is proof. When you finally get to the positive changes in Delaware corporate law, that's the closest you get to proof, but you don't compare or contrast those provisions with other states. Are there no other corporate-friendly states out there with analogous laws? Maybe those other states are actually more corporate-friendly, and the popularity of Delaware is just a byproduct of inertia from decades of indoctrination that "Delaware is most corporate-friendly?" I don't know the answers to those questions, but your post didn't help. The hyperbole and lack of substance was incredibly annoying.HBS Staff replied: Wednesday, February 15, 2017
More than three-quarters of all IPO's in America were incorporated in Delaware. More than half of all Fortune 500 companies were incorporated in Delaware. The number of business entities formed in the state continues to increase. All of these stand-alone facts are, indeed, "proof" that no other state even comes close to incorporating as many companies as Delaware does. The blog was written--and is phrased accordingly--to serve as additional proof that Delaware is the best state in which to incorporate. It is a summary, essentially, of the Delaware Annual Report, as well as a continued conversation of the Delaware Advantage blogs we run on a regular basis (it's an entire category in our sidebar). For your edification, here is more information on why Delaware is considered (by lawyers, venture capitalists, entrepreneurs & CEOs) the best state in which to incorporate: