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Companies incorporate in Delaware because of its corporate-friendly environment, which offers numerous benefits in terms of convenience, tax liability and legal protection for businesses. Other pages on this site go more in-depth on the question of "Why incorporate in Delaware?" but we've distilled the answers down to a short list of bullet points here:
You do not need to visit Delaware in order to form a business in the state. Delaware's Division of Corporations is the best in the world at processing business formation filings quickly, and it encourages entrepreneurs from across the country and around the world to form their businesses here.
We can take care of all the necessary paperwork for you, so file your Delaware company with us today.
Image Attribution: Tichnor Brothers
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
There are 3 comments left for Why Do So Many Companies Incorporate in Delaware?Henry r narcisi said: Monday, May 24, 2021
Can I use my fein number via my previous Corp that I am reorganizing?HBS Staff replied: Tuesday, May 25, 2021
The Federal Tax ID Number never disappears and is always associated with the company even if it is not an active entity. https://www.delawareinc.com/blog/an-ein-number-never-dies
Alain said: Wednesday, August 16, 2017
So why did have to provide my name and SS to do the SS4 form and they had to link that to my SS?HBS Staff replied: Thursday, August 17, 2017
The IRS requires the SS number if the member or officer has a SSN; this is the policy of the IRS.Steve clark said: Monday, June 22, 2015
This was very helpful as I navigate the path foru new start up.