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What is meant by Delaware corporation?

Delaware corporations are companies that are legally registered in the state of Delaware but can conduct business anywhere. Roughly half of the companies listed on the SP 500 are incorporated in Delaware because it is perceived as being business-friendly.

What is the Delaware tax loophole?

Companies and wealthy individuals can use Delaware to avoid paying some taxes in other states. So theres a thing called the Delaware Loophole, which essentially enables companies to avoid paying state corporate income tax where they earn the revenue.

Why do investors prefer Delaware corporations?

Angel investors and venture capital firms generally prefer Delaware corporations. The main reason to choose Delaware is for its predictable laws that protect investors. Accordingly, legal professionals and capital investors have always been comfortable with the Delaware laws and procedures governing these entities.

Why is Delaware the best place to incorporate?

the Courts Many experienced lawyers believe that the principal reason to recommend to their clients that they incorporate in Delaware is the Delaware courts and the body of case law those courts have developed. They point, in particular, to the national reputation and importance of the Court of Chancery.

What is a de certificate?

A Delaware Certificate of Good Standing is an official document proving that your company has permission to do business within the state. It also serves as verification from the Secretary of State that your company complies with the states business regulations.

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