Delaware is a state in the Mid-Atlantic region of the United States famous corporate heaven because of its business-friendly laws, lenient tax policies and reduced restrictions. The key advantages to incorporating in this state are tax benefits, privacy, expediency, simplified structure and the corporation court.

Companies that are legally registered in the state of Delaware can conduct business anywhere. Furthermore, if the business does not conduct its operations in Delaware, the state’s corporate income tax may not apply. Instead of paying that income tax, those Delaware corporations instead pay a franchise tax.

Delaware’s franchise tax is an annual flat fee for limited partnerships and limited liability companies. The franchise tax for corporations is calculated based on the type of corporation, the number of authorized shares, and other factors. This can be significantly cheaper compared to the taxes other states would charge.

Delaware companies uphold the highest amount of confidentiality as they don't need to disclose the names of the owners and the directors. In fact, only the company name and registered agent’s name/address appear on the formation documents.

Moreover, directors and shareholders are not required to reside in Delaware. One person is allowed to hold numerous positions in the company.

Delaware has a special corporate-oriented court with specific jurisdiction over corporate disputes. Judges are impartial and not beholden to special-interest donors or shifting political winds. Unlike in many other states, Delaware corporate law cases are tried exclusively by professional judges, and not by juries.

Limited Liability Company

A Delaware Limited Liability Company is a business entity whose owners and managers are not personally liable for the company's debts and obligations. Owners of the LLC can be individuals or any type of entity, from anywhere in the world, and are unlimited in number. LLCs can avoid the US taxation if the company has a non-US income. No Business License Required if the company is doing its business outside Delaware.

General Corporation

A general corporation, often referred to as a stock corporation, is recommended, especially when a company goes public or plans a private offering of stock. This type of companies is also typically used for attracting venture capital funding, purchasing other companies, raising capital, transacting business globally. A general corporation must have: shareholders, directors and officers. There is a clear separation of rights and responsibilities between these groups within the general corporation.