Business registration in Delaware: pros and cons
Registering a business in Delaware in 2021 is relevant because the state has created a positive environment for entrepreneurship. To learn more about the nuances of incorporation, contact our experts at IT-OFFSHORE.
Pros and cons of incorporation
Opening a company in Delaware in 2021 interests many entrepreneurs because the state has well-developed corporate laws. It's conducive to attracting investment and you can use almost all of the legal forms. Laws are favorable to conduct international business.
The state has a well-developed judicial system with a court for the decision of corporate disputes. The attitude to foreign businesses is rather favorable - no charge for sales, property, inheritance, and the transfer of shares.
However, when registering a firm in Delaware in 2021 you need to consider that there is a franchise tax, which is paid by all companies. Personal liability of corporate persons is protected and there is a high level of anonymity. Personal information is not subject to publicity.
- There is no tax optimization for small businesses;
- May require large expenditures to start a company;
- Must meet the requirements of the territory;
- Presence of registration agent is required;
- Personal presence is required when resolving legal disputes.
In general, registration is quick and hassle-free. Requirements for the founders are considered loyal - they can be non-residents, and it is not required to have an office in the state.
Basic legal forms and account opening
It is possible to register a firm LLC, type "C", "S". These structures can be applied as offshore, as they are available for purchase by non-residents. Business in this case is conducted outside the territory.
The most common form for opening is an LLC. The firm can have one founder. The smallest authorized capital is not defined. If the founders are non-residents, income tax is required to be paid only on income generated within the United States. Personal liability is limited to amounts invested by owners and managers.
In order to use the account, the company must have representation in the form of an actual office in the state. Opening a Delaware bank account in 2021 is available regardless of the amount of registered capital.
The leading financial institution is Santander Bank. It specializes in servicing corporate accounts and local communities. There is an option to set up an account on individual terms. Another bank - Advanta - has a high level of confidentiality. To open an account, the founder must be present in person.