Marked by fewer regulations and a notable lack of bureaucracy, and with the Delaware Corporation Law being considered throughout the U.S. among the most attractive for organisation purposes, it is a valuable jurisdiction in which to organise new companies. Many of the nation’s leading corporations are incorporated in Delaware even though their operational headquarters are elsewhere.
The policy of Delaware courts has always been to construe the Corporation Law liberally, to interpret any ambiguities or uncertainties in the working of the Statutes so as to reach a reasonable and fair construction. Delaware courts are more familiar with complex corporate law than are the courts in many states. All of this causes the careful investor to have confidence in the security of the corporation.
Corporations not having any business in Delaware pay no Delaware Corporate income tax. Franchise tax compares favorably with other states and is payable on the authorised share capital of a company at a rate of 1%. It should be noted however that Delaware corporations do fall within the Federal Tax System.