Top 7 Reasons to Start a Business in Delaware

By Mill Marketing

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

May 12, 2022

Health Technology Comes To The Mill

Health care is a major component of our economy. The behind-the-scenes aspects of health care, including technology, have become increasingly important in keeping people healthy. Reciprocity Health is the team behind […]

April 18, 2022

Nine Holes Anywhere: A Fundraiser for Theatre N

Theatre N is planning to bring new programming, including live performances of local musicians, comedians, and storytellers to the stage, but Wilmington’s only arthouse of 20 years needs help from the community.  Join us […]

January 31, 2022

Celebrating National Mentorship Month

Mentors are men and women in our lives who have helped guide us during various stages of life, whether it’s personal or professional. In honor of National Mentorship Month, your […]

December 15, 2021

Concord Members Make The Inno 25 Under 25 List

Two members of The Mill at Concord have found themselves where few people have before: inclusion in the Philadelphia Business Journal’s 40 Under 40. Rarely are Delaware business up-and-comers even […]

November 3, 2021

Top 7 Reasons to Start a Business in Delaware

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 […]

November 1, 2021

Office Decoration Tips

By Geraldine Orentas Quarantine and everything that has happened over the past year and more has impacted us in many ways. Transitioning from the home office to your office might […]

October 29, 2021

Building A Community Through Coworking

By Abigail Baker Coming together to cultivate a community at The Mill is a vital part of fostering collaboration and innovation. The emergence of coworking spaces has opened the door […]

October 27, 2021

5 Ways Coworking is the Modern-Day Solution

By Jack Vale Many workers find that coworking is a happy medium between working from home and in a traditional company office. Here are five ways why coworking is a […]

May 27, 2021

The Future Of Coworking

The largest, flashiest, of our kind went down in a glorious, public, and arguably the worst initial public offering in the stock markets history.  The charismatic CEO who checked every […]

May 4, 2021

Ideas for 2021

While the Payroll Protection Program was intended to help mom-and-pop shops, more than half of the roughly $525B in PPP loans doled out through November 2020 went to just 5% […]