4 Reasons Businesses Choose to Incorporate in Delaware

More than half a million businesses have incorporated in Delaware, including half of all American publicly traded companies, nearly two-thirds of Fortune 500 businesses, and most technology start-ups. For 10 years straight, the Chamber Institute for Legal Reform has called Delaware the best legal environment for corporations in America.

Here are some of the reasons that businesses choose to incorporate in Delaware:

1.  The Flexibility of Delaware Corporate Statutes 

Delaware’s corporate laws provide a lot of flexibility in a corporate organization and the rights and responsibilities of board members and shareholders. For example, Delaware enables one individual to be a Delaware corporation’s only manager, shareholder, and officer, while some other states require at least three individuals to fill the roles of officer and director. Although many of Delaware’s laws have been mimicked in other states, their comprehensive case law is a huge asset in determining how to interpret a Delaware statute.

2. More Protection of Privacy Than Other States 

Delaware does not need to disclose names of officers or directors on training papers. This offers a layer of anonymity that is not available in some states.

3. Corporate Law Expertise of the Delaware Court of Chancery. 

Delaware has a dedicated court focusing on corporate problems–the Chancery Court. The Court of Chancery has a lot of knowledge and familiarity in resolving complicated commercial conflicts because of this specialization. No company intends to wind up in court, but if you can be assured that a dispute will be settled by a very knowledgeable judge who has plenty of experience in resolving matters of corporate law.

4. Investors Like to Invest in Delaware Corporations. 

Angel investors and venture capitalists tend to prefer investing in businesses that are integrated in Delaware as a C Corp. Therefore, you may want to integrate in Delaware if you are serious about obtaining investments from these kinds of investors.

Seek Legal Help

If you’re thinking about incorporating in Delaware, you should seek assistance from a competent lawyer. Please contact the Greenbaum Law Firm, P.A. to schedule a consultation today.

The following two tabs change content below.

Greenbaum Law Firm, P.A.

The Greenbaum Law Firm, P.A. is a boutique, client-centric law firm concentrating in the areas of business and corporate law, contracts and agreements, and real estate. Our unique approach to the practice of law consists of positioning our clients at the center of the legal practice and pursuing their objectives in the most efficient and transparent manner.

Latest posts by Greenbaum Law Firm, P.A. (see all)

%d bloggers like this: