Businesses seeking to expand beyond single state ventures or pursuing traditional investment models often choose to form Delaware corporations. Delaware has consistently been regarded as the preeminent home state for businesses because of friendly, predictable and time tested corporate and business laws. The Delaware Department of State reports that over 60% of all fortune 500 companies choose to incorporate in Delaware. We can help you form a Delaware corporation, and assist you in deciding whether doing so is right for your business.

While Delaware may be, all other things being equal, the most favorable place for incorporation, a Delaware corporation is not the best option for all businesses. While forming a Delaware corporation will allow its internal affairs to be governed by Delaware law, even outside Delaware, a Delaware corporation cannot do business in another state unless it first seeks authority to do so from that state. The requirements to maintain authority to do business in a state are often similar to the requirements of incorporating in such state in the first place.

For a business only intending to do business in New York, forming a Delaware corporation means expending double effort: maintaining registration in Delaware and maintaining authority in the state where the corporation is actually doing business. The New York Business Corporation Law was amended in 1998 to be much more business friendly than it previously was, and in such case, the benefit of being governed by Delaware law might not be worth the additional effort. If, on the other hand, the business is planning to do business in multiple states, then the stability and Delaware’s corporate statute might be desirable

If you have any questions about the Delaware corporation, it would be our pleasureto answer them. Make an appointment today for a free consultation!