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What is a Delaware Corporation?

A Delaware corporation is simply a corporation that is incorporated in the State of Delaware. The corporation does not actually have to be located in Delaware or even do business in the State of Delaware.  A Delaware corporation is registered in Delaware. Corporations choose to incorporate in Delaware for a variety of reasons including:

  • The low cost to incorporate there
  • A corporation friendly legal environment meaning they are pro-business
  • The courts in Delaware are experienced in deciding issues involving corporate law
  • No state income tax is charged on corporation incorporated in Delaware that are headquartered out of state

© 2009 by Michael C. Dennis.  All Rights Reserved.  Michael is the author of "Credit and Collection Handbook."