The fact that a large portion of the Fortune 500 companies incorporating in Delaware may attract great sums of business people. Like Connecticut, Delaware is one of the smallest states in the nation, however, their population density ranks in the top 10. Many people incorporate in Delaware due to the advantageous tax system, which may be the perfect opportunity for many potential business owners.
- Delaware ranks 1st on the Work Environment Index. (2005)
- Delaware ranks 1st on the “Decent Work in America” study (UMass Amherst’s Political Economy Research Institute, 2005)
- Delaware ranked 18th for Friendly Business Tax Climate (The Tax Foundation, 2005)
- Delaware’s State/Local Tax Burden in 3rd lowest in the U.S. (The Tax Foundation).
Fees & Taxes
Business Inventory Tax
Delaware does not tax business inventory.
Corporate Franchise Tax
All corporations incorporated in the State of Delaware are required to file an Annual Franchise Tax report and to pay a franchise tax. The minimum tax is $35.00 with a maximum tax of $165,000.00.
Corporate Income Tax
The general corporation rate is 8.7%.
Gross Receipt Tax
Delaware assesses a gross receipts tax on the seller of goods (tangible or otherwise) or provider of services. Business and occupational gross receipts tax rates range from 0.096% to 1.92%, depending on the business activity.
Personal Income Tax
Variable. The income tax rate starts at 2.2% for income starting at $2,000 and going up to $5,000. Income over $60,000 is assessed at 5.95%.
Personal Property Tax
Delaware does not assess a state-level tax on real or personal property. Real estate is subject to county property taxes, school district property taxes, vocational school district taxes, and if located within an incorporated area, municipal property taxes.
State Sales and Use Tax
Delaware does not levy a general sale or use tax.
Register company in Delaware.
After doing business in California or other states you will be pleasantly surprised how Nevada is a REALLY business friendly state. No personal state taxes, no corporatestate taxes, no state franchise tax. Minimum bureaucracy. Nevada offers privacy! Shareholder names are not in public records.
- No corporate income tax
- No taxes on corporate shares
- No franchise tax
- No personal income tax
- No IRS information sharing agreement
- Nominal annual fees
- Minimal reporting and disclosure requirements
- Stockholders are not public record
Stockholders, directors and officers need not live or even hold meetings in Nevada, nor be U.S. citizens.
Directors need not be stockholders.
Officers and directors of a Nevada corporation can be protected from personal liability for lawful acts of the corporation.
A Nevada corporation may purchase, hold, sell or transfer shares of its own stock.
A Nevada corporation may issue stock for capital, services, personal property or real estate, including leases and options. The directors may determine the value of any of these transactions, and their decision is final.
Your company must be located and doing business in Nevada to get the full advantages of Nevada’s business-friendly environment.
Register company in Nevada.
A few days ago, we had very interesting phone call from our customer based in France requesting on incorporation in Hong Kong, Nevada (USA) and UK.
We had spoken about the incorporation process and the price policy after a few minutes of discussion, he was claiming that he will use this jurisdictions as good and cheap marketing strategy.
It’s actually smart strategy if you realize that you can use this companies as point (hub) being closer to your customer! Your customers will definitely appreciate if you will have an entity closer to them, you might later benefit from tax advantages and many others as well. Nowadays, it’s not difficult to open up a company in several jurisdiction without travelling.
For company formation in Hong Kong, Nevada (USA) or UK, please visit our website. This can be done really into a few days with a low budget.
As Android application developer you might wonder in which country you should have registered company in order to get paid. Google has published a list of
countries where you should have registered company in order to be able to sell your application. If you are from e.g. India, China or Poland, you should consider where to open up a company!
Startupr can help you with company formation in (Google Checkout merchant countries):
– Hong Kong
Annual list or Annual return is required by local government every year in order to have an overview in regards to additional changes stated under the state ordinance during the year. For some jurisdiction it’s just only way how to keep database updated yearly ( e.g. State of Nevada). For some other jurisdiction it’s obligatory to report every changes rising during the year by some other forms (particularly for every changes you need to fill different form) and additionally the same change report in annual return . These changes are defined as change of address, director, shareholders, business name, business address, shares, company secretary etc.
– the Annual Return must be filed once in every calendar year (except in the year of its incorporation) within 42 days of the anniversary of the company’s incorporation date.
– the Initial List MUST be filed on or before the last day of the first month following incorporation/initial registration. The Annual List MUST be filed by the last day of the anniversary month of the original filing. Example: If the entity filed on Oct. 15, 2002, the list must be filed by Oct. 31 of each year. Postmark date is not accepted as receipt date in the Secretary of State’s office.
It is the responsibility of the directors of the company to ensure that the initial and ongoing compliance requirements are met with.
An annual return must contain the following information:
- the name of the company;
- its registered number;
- the date to which the annual return is made-up (the made-up date);
- the principal business activities of the company;
- the type of company it is, for example, private or public;
- the registered office address of the company;
- the address (single alternate inspection location – SAIL) where the company keeps certain company records if not at the registered office, and those records held there;
- the details of the company secretary (corporate or individual), where applicable; and
- the details of all the company’s directors (corporate or individual).