Do you love the big city life? Do you want to open your business in New York but aren’t sure if you can commit there? Is the nature of your business mobile or virtual, but you’d like to live in New York running your business but still enjoy good tax savings? If any of these apply to you then you should incorporate your business in Delaware! You can open a corporation in Delaware while still enjoy living in New York.
Delaware is one of the best corporate tax havens in the US. It has over a million limited liability companies, corporations, limited partnerships, not-for-profit corporations, and other many types of legal entities registered in this state. It contains some of the biggest corporations in the US. What makes Delaware such a desirable location for creating a corporation?
Ideal for start-ups
Many investors are attracted by the favorable business conditions that Delaware provides. If you need seed money, this is a good place to find venture capitalists. You can form an LLC then transition as a C Corporation, or begin as a C Corporation as many investors favor this type of entity. Many virtual and mobile companies put their base in Delaware because of the ease of incorporating and that companies operating outside the state aren’t taxed. This makes it easy to run a profitable online business in New York but be listed in Delaware.
Favorable business laws
As so many major businesses set up base in Delaware, they are sure to keep their business laws relevant and updated to current trends and changes. They provide a unique service to corporations known as, “The Court of Chancery”. This court exclusively handles business disputes and judges are chosen based on merit, they must possess vast knowledge of the state’s business laws.
Whether the entity is a Delaware Corporation or a Delaware LLC, these entities enjoy outstanding tax savings unavailable in other states:
Delaware corporations not operating within the state do not require a business license
Delaware corporations which operate out of state are not subject to state income tax
Intangible personal property is not subject to state sales tax
Non-Delaware residents are not subject to inheritance tax on stock
Stock shares held by non-resident aliens aren’t subject to Delaware taxes
Simple, quick, affordable filing
As almost one-third of Delaware’s state budget comes from serving businesses (legal work, taxes, annual fees), they provide some of the best services that a business can ask for. The state offers several options for filing: standard filing, 24-hour filing, same-day filing, and 30min-filing. Delaware has some of the lowest rates for incorporating a business or forming an LLC.
If you want to continue living in New York and starting a business, this is possibly one of the best options for you. It provides flexibility in your taxes and working conditions and allows you to minimize costs and relocate with less trouble. If there’s something you don’t understand with the process, it may be in your best interest to consult a local New York attorney to find out if this is a good move for your business.
Call the Queens Ledger Featured Business Attorney Today At: Fisher Law Group- Business, Corporate & Startup Firm 25 Broadway Fl 9 New York, NY 10004 (212) 256-1877.
We cordially invite you to visit the full line Queens Ledger business law & entity formation directory in NY.