Now, privacy and taxes may be a concern for some, but for others the biggest
concern is the threat of lawsuits. If you are creating a business that could be
prone to litigation, then choosing Delaware
as a place to incorporate your business may be the option.
Delaware is actually the home
to a large majority of the companies listed on the Fortune 500. The reason for
this is Delaware’s business-friendly
environment in settling lawsuits. This state is home to the Court of Chancery.
This court dates back to the 1700’s specifically decides cases related to
businesses—and nothing else! This allows for lawsuits against companies based
in this state to be decided quickly and without years of expensive litigation
and appeals. Again, incorporating in Delaware
if you do not live in the state will incur fees. You will have to hire a
company to be the registered agent for your company in the state.
Changing Your Mind
Now, if have already incorporated a business in your home state, but think
that it might be time for a change, this is not out of the question. It is
certainly possible to register your business in Delaware,
then register paperwork in your home state letting the world know that Delaware
or Nevada is now your home state.
In fact, as your business grows, it is always necessary to make structural
changes.
The bottom line is to do what is best for the nature of your business. It
will not always be necessary or prudent for a business to register in one state
or another simply because of any one issue. Instead, you need to look at the
overall picture of your business, and where you want it to go.