More than half of public and Fortune 500 companies are incorporated in Delaware. What are the legal benefits of creating a corporation in Delaware over any other state?
Court Of Chancery
The Court Of Chancery is a court decided by a bench trial (trial by just a judge), meaning no jury is involved.
Companies tend to try to stay away from jury trials for a number of reasons:
- Juries tend to vote more sympathetically than judges
- Juries tend to award more money for damages
- jury trails can affect public opinion
- juries tend to distrust corporation
- Delaware has no sales tax (doesn't matter if the company is in Delaware, as long as it incorporated in the state of Delaware.)
- Delaware doesn't have a corporate tax
- Delaware doesn't have a personal property taw
- No value-added tax (doesn't tax business transactions)
Delaware doesn't require companies to disclose information of workers in the company.