Top 7 Reasons to Start a Business in Delaware

By The Mill

By: Jack Vale

It might be surprising to learn that Delaware is home to over a million companies, let’s explore the top seven reasons why our Small Wonder is home to many startups:

  1. Delaware ranks #1 for patents issued per capita. Startups looking to bring a new product or invention to market might find success in Delaware. With the state’s generous giving of patents to applicants, you might find a better chance of patenting your product if you apply in Delaware. 
  2. Venture capitalists are more likely to come knocking. Delaware’s laws are often considered ‘business-friendly.’ Startups in Delaware benefit from slightly altered laws which would cause fewer taxation issues for investors than an S-Corp or LLC Delaware would. Also, if your business registers as an S-Corp, you are much less likely to receive venture capital investment because the laws prevent an organization from investing.
  3. It’s well-known as a ‘tax haven.’ Companies starting up in Delaware can enjoy favorable tax laws that aren’t usually available in other states. Delaware startups can operate outside of the state without incurring corporate tax on goods and services, incur no inventory tax nor need to file any VATs. The only tax required to be paid in Delaware is a ‘franchise tax.’
  4. Your startup’s details will remain more private. In Delaware, there is no legal obligation to state the name of any company founders or LLC members inside formation documents. This will help keep personal details of your startup out of the public domain.
  5. It can take under an hour to register a company. In Delaware, you need very little information to be able to form a startup. Essentially, all you need to do is have an available company name and hire a Delaware Registered Agent to help you file the company and receive any permits.
  6. Corporate legal issues can be solved in days. Delaware’s legal system has a ‘Court of Chancery,’ meaning that any corporate disputes can be solved quickly by judges trained in corporate law. In other states, disputes involving shareholders and other business entities would potentially take months or even years to complete.
  7. You will be taken more seriously by customers and investors alike. When a business is registered in Delaware, it sends a message that they are looking to expand nationally. Investors and many customers know that many reputable corporations are located in Delaware, so they will have more faith in your ability to deliver what you are selling.

Related Links

Jack Vale is a writer from Happy Writers, Co. in partnership with wrought iron door manufacturer, Abby Iron Doors

Check out our latest news

August 25, 2023

Third Floor Expansion Progress

Updated: August 2023 Get ready for bigger suites, action-packed amenity spaces, and an infusion of fresh air, thanks to the addition of outdoor terraces! There will be new offices, amenities, […]

August 1, 2023


At The Mill, you are surrounded by winners. We want to take a moment to highlight one of our newest office members: Connect2Co. Do you find it exhausting to constantly switch […]

June 26, 2023

Meet Dana

Introducing Dana Davisson (pictured on the right), a vibrant North Wilmington resident residing just a short 8-minute drive away from our esteemed Concord location. Dana’s infectious enthusiasm for the outdoors […]

May 10, 2023


When is the best time to flip your whip (i.e. Car)? Right about now, according to the experts! If you’re over your current set of wheels and are looking to […]

April 4, 2023

It was a Plant-tastic Event!

Terrarium Making Workshop We had a fun time with Will Ramirez leading a Terrarium Making Workshop on Thursday, March 30th at The Mill Concord. Take a look at the pics […]

March 27, 2023

The influence that Chat GPT will have on the business world

The recent advancements in artificial intelligence technology, specifically language models such as OpenAI’s GPT-3 (Generative Pretrained Transformer 3), has opened up new avenues for businesses to improve and innovate. ChatGPT, […]

March 8, 2023

Celebrating Women Voices

Meet our extraordinary office member Tanya Williamson, who is helping individuals build sustainable businesses, strong families, and resilient communities. Tanya is a proud and successful entrepreneur who runs multiple businesses from […]

February 28, 2023

Meet Ryan Costin

Image and Professionalism: Why it Matters in Life and Business Image and professionalism are important aspects of our lives that we often overlook. How we present ourselves to others, both […]

December 20, 2022

3 Ways to Overcome Holiday Work Stress

With most companies giving time off during the winter holidays, the month of December seems to get shorter every year, and yet, your work day can start to feel longer […]

December 12, 2022

Computer Science Education Week

The second week of December celebrates Computer Education Week, and we asked our member, Zip Code Wilmington, to let us interview one of their students. Meet Kash Elcock. We asked […]