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Delaware Incorporations

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Delaware incorporations are known throughout the country and throughout the world as being among the most advantageous corporate structures available in the business realm. The veracity of this statement can be tested simply by taking a look at all of the companies listed on the New York Stock Exchange. Roughly one of every two companies on the NYSE is a Delaware corporation--and the percentages are even higher when one looks at the Fortune 500.

Why do so many companies incorporate in Delaware? The simple answer is that they can. Delaware state laws place no residency restrictions on companies looking to incorporate in the state. One need never have laid eyes on Rehoboth Beach--nor any other part of the state, for that matter--to incorporate one's business in Delaware.

Benefits of Delaware Incorporations
There must be a reason that so many high-profile companies select Delaware as their place of incorporation. There are a number of factors that make the state a good place to do business. One of these factors is the various ways in which a corporation can be structured in the state.

Many states offer Limited Liability Companies (LLCs). LLCs protect the private assets of business partners by creating a barrier between such assets and the assets and operation of the business in question. Delaware, however, also offers serial LLCs, which separate not only personal and business assets but break down the assets of a given corporation into a series of entities which are nonetheless considered part of the same general whole. This series of entities allows for separation of the operation and legal status of, for example, numerous pieces of property.

The Delaware Business Legal System
The advantages offered by corporate structuring would be offset greatly were corporations not backed by a solid legal system. Business law in Delaware varies from other states in terms of process. The state has its own Court of Chancery to deal with business matters. The Court is populated by judges--but not juries.

Delaware Court of Chancery judges are selected due to their distinction when it comes to dealing with business matters. The fact that juries are not present for cases helps businesses by providing a solid base of precedent. Each judge writes opinions for the cases that he or she decides, leaving behind a trail of reasoning. Such a system makes Delaware a legal researcher's paradise and allows businesses to plan legal strategies as carefully as thoroughly as possible.

Incorporating with Registered Agents
If forming a Delaware corporation sounds like a good idea for your business, your first step is to get in touch with a registered agent (agents are mandated by the state for dealings between businesses and the state government). Preliminary procedures for incorporating in Delaware, including searching for a business name and obtaining a Federal Tax Identification Number, are easily facilitated by knowledgeable agents. Some agents will also help you complete state paperwork in a timely and professional manner.

Agents will help you in your dealings with the state government for as long as your company exists. They will update you as to new regulations and aid you in paying your annual franchise taxes. Make sure to select an agent that has been in the business for a significant period of time. The more experience your agent has in Delaware incorporations, the easier running your business will be.

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