Delaware

Delaware Incorporation Company Formation

The Main Domestic Incorporation

Delaware is the State where almost half of the Fortune 500 Companies are based in the United States. The primary reason is that Delaware has a very corporate friendly Court of Chancery; it is probably the most efficient Division of Corporations in the US with incorporations formed within a few hours, has little bureaucracy, very low franchise taxes and no corporate tax on corporations based outside of the State. However, it should be noted that standard Delaware chapter 'C' corporations, like all other US corporations, are taxed by the Internal Revenue Service (IRS) on their worldwide income whilst the fiscally transparent sub-chapter 'S' corporations are only available to either US citizens or green card holders. The corporate tax rate for Delaware incorporations managed from Delaware is a flat rate of 8.7% plus applicable Federal taxes.

Synopsis

Delaware - Delaware has a very large company incorporation and financial sector but also produces chemicals, food products, paper products, rubber and plastics products, primary metals and printed materials. It is one of the most developed States in the Union.

The United States of America - The World's predominant nation in economic and military terms with a strong tradition of democracy and social inclusion although certain economic groups, primarily African Americans and Hispanics, have significantly lower standards of living and educational attainment. On a GNP per capita basis it is one of the World's ten most wealthy nations. Unemployment is under control despite the economic downturn. Geographical area: 3,618,770 sq. miles or approximately 36 times the size of the United Kingdom. Population: 313,900,000 (July 2012).

Star Ratings

Corporate registration efficiency

5

Cost

5

Confidentiality

5

Local Banking facilities

5

Legal system

5

Political stability

5

Reputation

5

delaware

Location

Delaware is located on the Eastern Seaboard of the United States, bordered by the Atlantic Ocean and the states of New Jersey, Pennsylvania and Maryland. The State is 1,982 sq. miles in size and is about quarter the size of Wales.

About Delaware Incorporations

Delaware incorporations are very cost effective, supported by the most developed corporate laws in the USA and are favoured by large corporations. The corporate tax rate for corporations managed from Delaware is 8.7% plus Federal taxes but Delaware corporations set-up but run from other States are free of all local State taxes save the annual franchise tax payment payable to the Division of Corporations each year depending on the original incorporation date. As with all other US corporations they are either fiscally transparent (sub-chapter S corporations) or separate legal entities for tax purposes (chapter C corporations) but as stated the former are only available to US citizens and green card holders. Non US citizens requiring a fiscally transparent US legal entity should use a limited liability corporation (see separate information page)

Domestic Corporation Tax

The domestic corporate state tax is 8.7% plus federal corporate taxes which vary between15% to 35% depending on turnover.

Prsonal Tax

Delaware's individual (personal) income tax rates consists of six brackets and a top rate of 6.75% % plus federal individual taxes which vary from a graduated 10% to 35% depending on income level.

Administration & Accountancy Services

Managed & Non-Managed Companies

The SCF Accountancy & Law can provide Delaware companies either in a non-managed or managed format depending on client needs and requirements.

Fully Managed & Branch Registrations

Where required SCF Accountancy & Law can provide fully managed services and even branch registration in another jurisdiction where tax treaty protection is required. For further details please consult with a SCF sales consultant

Set-Up & Annual Maintenance Fees

Please request the separate Delaware Incorporations Quotation Leaflet

The Ownership of Delaware Incorporations & Llc's

'Overhead' Discretionary Trusts or Private Interest Foundations

For tax planning reasons, normally pertaining to anti-avoidance provisions in a beneficial owners 'home' country or place of fiscal residence, and/or because of a need to 'ring fence' assets many clients owning a Delaware company may select to have it owned not be themselves but by an overhead discretionary trust or a Jersey Private Interest Foundation, Seychelles Private Interest Foundation or a Liechtenstein Private Interest Foundation (locally known as a Stiftung).

For more information on discretionary trusts and/or private interest foundations please refer to the trust and private interest foundation sections.