A business can form as a corporation in any U.S. state in accordance with that state’s law. The S corp’s stockholders report the information on their individual tax returns. To establish an S corporation in Delaware, you need to first form a Delaware corporation that is eligible to file an S corp. election.

Is a Delaware corporation an S corp?

Put quite simply, a Delaware S corp is a Delaware C corp with one extra document. If you incorporate a Delaware C corp and file a Form 2553 with the IRS, the IRS will write back to you and tell you that you have a Delaware S-corp on your hands now.

How does A S corporation work in Delaware?

The election of Subchapter S tax status allows the profits of the corporation to pass through the entity to the individual shareholders and, accordingly, is only taxed once. Thus one of the benefits of an S corporation in Delaware is that it has all of the benefits of a Delaware corporation but with a different tax status.

Can a Delaware corporation file a federal tax return?

A. Yes. Delaware requires every corporation filing a Delaware corporate income tax return to attach a completed copy of a pro forma federal tax return, including all schedules and attachments. The forms can be found at

What is the power structure of a Delaware corporation?

Delaware law governs the power structure and so it is not able to be altered. Delaware law also governs the duties of each tier, along with the relationship between each tier. A corporation is owned by shareholders and is managed by the directors, while day-to-day operations fall within the power…

What makes Delaware a good place to incorporate?

More than one million business entities take advantage of Delaware’s complete package of incorporation services, including modern and flexible corporate laws, our highly-respected Judiciary and legal community, a business-friendly government, and the customer-service-oriented staff of the Division of Corporations.