64% of Fortune 500 firms are Delaware incorporations: here’s why. There are three big reasons: an established and business-friendly legal framework, a widely respected and specialized court system and pro-business priorities from state government.

Why is Delaware law preferred?

The DGCL offers predictability and stability. It is shaped by corporate-law experts and protected from influence by special-interest groups. The Delaware legislature every year reviews the DGCL to ensure its ability to address current issues. The DGCL is also an enabling statute.

What are the advantages and disadvantages of incorporating in Delaware?

While Delaware does offer benefits to companies who incorporate within the state, it’s primarily large corporations who derive the greatest advantage. Small businesses should carefully weigh the additional cost involved against the benefits of incorporating in the state before making a decision. Get help Incorporating your business.

Why do VC firms want to incorporate in Delaware?

VC firms and angel investors are generally more familiar with Delaware corporate law The high volume of corporate cases in Delaware means there are likely several similar cases where advisors can look for precedents, rulings on past cases, and create deals that lead to more predictable outcomes and less uncertainty in a legal dispute.

How many Fortune 500 companies have incorporated in Delaware?

According to the Delaware Division of Corporations, 67.8% of Fortune 500 companies are incorporated in Delaware, and 1.5 million corporations have registered in the state. The State of Delaware has worked hard to position itself as the place for incorporating a business. The advantages of incorporating here include:

Do you need a registered agent to incorporate in Delaware?

The cost of a registered agent. If you incorporate in Delaware, you are required to name a registered agent with an actual street address in Delaware to receive legal documents on behalf of your corporation.