What is the benefits of incorporating in Delaware instead of where the principle place of business os?

by **aswynn81** » Thu Nov 24, 2011 5:03 am

Does it make sense to incorporate in Delaware if you are a small online company who has a principle place of business in Michigan? The only advantage i can see about incorporating in Deleware is because the laws favor corporations. But since the person has personal jurisdiction in Michigan as well, does this really matter, or does it just give any litigious person another place to forum shop?

by **aswynn81** » Thu Nov 24, 2011 5:11 am

Corporate liability laws are better for the corporation in Delaware.

by **kirklin** » Thu Nov 24, 2011 5:13 am

No state taxes on corporations.

by **nicolas** » Thu Nov 24, 2011 5:21 am

Very well defined corporate case law.

Unlimited interest rates--why credit corps are DE corps.

Pricey incorporation and fees! More for a rich corp.

Nevada is another corporate haven.

by **chason58** » Thu Nov 24, 2011 5:31 am

No need to diclosed owners of an LLC.
Protected by Delaware Corportate law.
Premier Chancery Court system in the world.
You can include in your corporate bylaws, and have listed on website, that you are Delawre Corp, and governed by Delaware law. Thus, somone in California would have to to use Delaware Court to file a lawsuit.
Low incorporation fees.
Low cost to be licensed.
Low taxes in Delaware.

Advertisments:

Sponsor Links: