Business Overview
Delaware is renowned for its business-friendly corporate laws and court system, making it the legal home for many U.S. corporations. The state offers tax advantages, a specialized business court, and streamlined incorporation processes. Key industries include financial services, pharmaceuticals, and healthcare.
Key Facts & Figures
| Category | Details |
| Capital | Dover |
| Major Cities | Wilmington, Dover, Newark, Middletown |
| State Sales Tax Rate | No state sales tax |
| Local Sales Tax Rate | No local sales tax |
| Corporate Income Tax | 7.5% flat rate (plus surcharge for large companies) |
| Physical Nexus Threshold | No sales tax nexus requirements (no sales tax) |
| Economic Nexus Threshold | No economic nexus laws (no sales tax) |
Did you know?
More than 60% of Fortune 500 companies are incorporated in Delaware due to its business-friendly corporate laws and specialized business court system.
Setup & Compliance
Delaware offers efficient business formation with significant privacy and tax advantages.
Setting Up a Delaware Business:
- Choose Your Business Structure: Delaware is famous for its corporate law and LLC protections.
- Register Your Entity: File formation documents with the Delaware Division of Corporations.
- Appoint a Registered Agent: Delaware requires all businesses to maintain a registered agent in the state.
- Obtain Business Licenses: Secure a Delaware business license through the Division of Revenue.
- Register in Other States: If operating outside Delaware, register as a foreign entity in those states.
Delaware Business Advantages:
- Corporate Privacy: Delaware does not require disclosure of member/manager names in LLC filings.
- Court System: The specialized Court of Chancery handles business disputes with expertise and efficiency.
- No Sales Tax: Delaware does not impose sales tax on goods and services.
- Franchise Tax: Annual franchise tax applies to Delaware entities based on structure and capitalization.
- Separate Business Court: The Delaware Court of Chancery specializes in business matters, creating predictable legal outcomes.
Hiring & Payroll
Delaware maintains business-friendly employment practices while protecting worker rights.
Delaware Payroll Requirements:
- Unemployment Insurance: Rates from 0.3% to 8.2% on first $18,500 of wages.
- State Income Tax Withholding: Required based on Form W-4DE.
- Workers’ Compensation: Required for all employers.
Delaware Employment Laws:
- Minimum Wage: $11.75 per hour (increasing to $13.25 on January 1, 2024, and $15.00 by 2025).
- Overtime: Follows federal regulations (time-and-a-half for hours over 40 per week).
- Paid Family Leave: Not currently mandated at state level.
- Final Paycheck: Due on next regular payday after termination.
- Delaware is an at-will employment state.
State Incentives
Delaware provides strategic economic incentives to attract and retain businesses.
Key Business Incentives:
- Delaware Strategic Fund: Offers grants and loans for business expansion.
- New Economy Grant Program: Support for innovative and technology-driven businesses.
- Emerging Technology Center Tax Credit: Incentives for tech startups.
Small Business & Startup Support:
- Delaware Small Business Development Center: Comprehensive business resources.
- Opportunity Zone Investments: Tax benefits for investments in designated areas.
- Minority Business Enterprise Certification Program: Support for diverse businesses.
Regulatory Considerations
Delaware offers a business-friendly regulatory environment with clear legal frameworks.
Key Business Regulations:
- Corporate Law: Advanced corporate governance regulations.
- Data Privacy: Comprehensive protection of business and consumer information.
- Professional Licensing: Structured licensing requirements for various industries.
Additional Regulatory Areas:
- Corporate Formation: Streamlined processes for business establishment.
- Financial Services Compliance: Specialized regulations for corporate entities.
Business Overview
Delaware is renowned for its business-friendly corporate laws and court system, making it the legal home for many U.S. corporations. The state offers tax advantages, a specialized business court, and streamlined incorporation processes. Key industries include financial services, pharmaceuticals, and healthcare.
Key Facts & Figures
| Category | Details |
| Capital | Dover |
| Major Cities | Wilmington, Dover, Newark, Middletown |
| State Sales Tax Rate | No state sales tax |
| Local Sales Tax Rate | No local sales tax |
| Corporate Income Tax | 7.5% flat rate (plus surcharge for large companies) |
| Physical Nexus Threshold | No sales tax nexus requirements (no sales tax) |
| Economic Nexus Threshold | No economic nexus laws (no sales tax) |
Did you know?
More than 60% of Fortune 500 companies are incorporated in Delaware due to its business-friendly corporate laws and specialized business court system.
Setup & Compliance
Delaware offers efficient business formation with significant privacy and tax advantages.
Setting Up a Delaware Business:
- Choose Your Business Structure: Delaware is famous for its corporate law and LLC protections.
- Register Your Entity: File formation documents with the Delaware Division of Corporations.
- Appoint a Registered Agent: Delaware requires all businesses to maintain a registered agent in the state.
- Obtain Business Licenses: Secure a Delaware business license through the Division of Revenue.
- Register in Other States: If operating outside Delaware, register as a foreign entity in those states.
Delaware Business Advantages:
- Corporate Privacy: Delaware does not require disclosure of member/manager names in LLC filings.
- Court System: The specialized Court of Chancery handles business disputes with expertise and efficiency.
- No Sales Tax: Delaware does not impose sales tax on goods and services.
- Franchise Tax: Annual franchise tax applies to Delaware entities based on structure and capitalization.
- Separate Business Court: The Delaware Court of Chancery specializes in business matters, creating predictable legal outcomes.
Hiring & Payroll
Delaware maintains business-friendly employment practices while protecting worker rights.
Delaware Payroll Requirements:
- Unemployment Insurance: Rates from 0.3% to 8.2% on first $18,500 of wages.
- State Income Tax Withholding: Required based on Form W-4DE.
- Workers’ Compensation: Required for all employers.
Delaware Employment Laws:
- Minimum Wage: $11.75 per hour (increasing to $13.25 on January 1, 2024, and $15.00 by 2025).
- Overtime: Follows federal regulations (time-and-a-half for hours over 40 per week).
- Paid Family Leave: Not currently mandated at state level.
- Final Paycheck: Due on next regular payday after termination.
- Delaware is an at-will employment state.
State Incentives
Delaware provides strategic economic incentives to attract and retain businesses.
Key Business Incentives:
- Delaware Strategic Fund: Offers grants and loans for business expansion.
- New Economy Grant Program: Support for innovative and technology-driven businesses.
- Emerging Technology Center Tax Credit: Incentives for tech startups.
Small Business & Startup Support:
- Delaware Small Business Development Center: Comprehensive business resources.
- Opportunity Zone Investments: Tax benefits for investments in designated areas.
- Minority Business Enterprise Certification Program: Support for diverse businesses.
Regulatory Considerations
Delaware offers a business-friendly regulatory environment with clear legal frameworks.
Key Business Regulations:
- Corporate Law: Advanced corporate governance regulations.
- Data Privacy: Comprehensive protection of business and consumer information.
- Professional Licensing: Structured licensing requirements for various industries.
Additional Regulatory Areas:
- Corporate Formation: Streamlined processes for business establishment.
- Financial Services Compliance: Specialized regulations for corporate entities.
