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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?

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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:

  1. Juries tend to vote more sympathetically than judges
  2. Juries tend to award more money for damages
  3. jury trails can affect public opinion
  4. juries tend to distrust corporation

Tax laws

  • 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)

Privacy policy

Delaware doesn't require companies to disclose information of workers in the company.

  • And of course, because of all these things, Delaware has a very strong case law with respect to corporate law, which means that what you can and can not due has likely already been defined and spelt out by precedence. – hszmv Mar 29 '19 at 14:59

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