10 Legal Reasons Why You Should Register Your LLC, As A Non-Resident, In The State Of Delaware
Farrukh Dall, Fatima Gilani
Advocates and Partners at Trek Law
If you are looking for business proliferation and hence looking for incorporation in the United States, Delaware consistently ranks among the top 5 states. This goes hand in hand with Florida, California, New York, and Texas. Let us keep numbers in consonance with analysis we would see that nearly one million active legal entities were incorporated in Delaware at the end of 2012, out of 20 million legal entities incorporated in the U.S. We as a legal firm would acknowledge this number while you as an entrepreneur would appreciate it too. Keeping statistics in mind let us critically examine the top 10 legally justified reasons why we recommend Delaware to register your LLC as a foreigner or a non- resident.
- Us Stock exchange being the largest stock exchange of the world (Ref: NYCE) vouches Delaware as the leading jurisdiction for publicly traded corporations listed on U.S. stock exchange.
- More than half of the corporations that entered the US market (including 64% of Fortune 500 companies) have chosen to incorporate in Delaware.
- Delaware is also the leading jurisdiction for out-of-state incorporations, where a corporation headquartered in one state chooses to incorporate in another state.
- Delaware’s statutes provide protection of its laws and courts when it comes to investors which is a valuable point andhence justify the cost of maintaining a Delaware entity even if these entities have no operations in Delaware.
- The corporate law and judges are well versed in laws of the land which makes it a lucrative opportunity for the corporations. This well-developed body of corporate law applied in an efficient manner by expert judges sensitises the business minded and business focused ventures.
- One cannot bank upon any other state more than Delaware that provides stockholders with more rights and flexibility.Delaware grants stockholders the rights of stockholders in litigation.
- Delaware is generally regarded as having a reasonable overall tax climate for operating companies.
- Delaware law exempts income tax on certain Delaware holding companies. This is an exemption that is part of the overall tax strategy for Delaware—helping Delaware to attract multi-state corporations to locate operations in Delaware.
- Delaware enables business owners to create entities through a user-friendly procedure or rather a relatively simple and efficient process. This is because of the reason that Delaware has refined its operations to meet international quality standards. This is not only limited till processing of documents but also user-friendly filings electronically, allowing for fast formation of entities.
- The State even offers a “Global Filing Service” enabling formation of international entities on weekends or U.S. holidays.This permits efficient procedures for business combinations and other transactions. Not to forget that this not only supports LLC incorporations, SMLLC Incorporations but also mergers, transfers, and conversions.
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