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What Is a Delaware Corporation?

Simply put, a corporation that undertakes its legal business and is registered in the US State of Delaware is a Delaware corporation. A Delaware corporation doesn’t need to actually be in business or conduct any kind of business in Delaware itself. It only needs to be registered in that state as a business entity. Registration can either be as a sole-operated business or a corporation.

About half of the companies that are in the Fortune 500 are Delaware corporations. One of the biggest reasons for this is that a lot of business is being conducted in Delaware and the state’s courts are well versed in corporate law. In the eventuality that a limited liability company is taken to court, the Delaware courts can give these companies better guidance and provide more knowledgeable counsel compared to courts in other states because of the level of experience in Delaware.

There are other advantages to being registered as a Delaware corporation. The business laws in Delaware are very flexible and are geared towards the protection of businesses. In fact, it is the most pro-business laws in all of the states in the US. For example, a company can become a Delaware corporation regardless of where they are in the world. One does not need to live in Delaware or conduct business there.

Registration as a Delaware corporation is also very easy. It can be done over the phone, internet or through fax. One distinct advantage of a Delaware corporation is that it is not required to identify itself as such in public state records.

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