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Why do people create companies in Delaware?

By Sophia Edwards

There are two major reasons for Delaware’s dominance of the corporate incorporation business. The other major reason corporations choose to incorporate in Delaware is the quality of Delaware courts and judges. Delaware has a special court, the Court of Chancery, to rule on corporate law disputes without juries.

How long does Delaware incorporation take?

Time to process your corporation or LLC formation varies by state with routine processing taking 4 – 6 weeks or even more in the slowest states. Expedited Processing will reduce that time to about 10 business days or less with the exception of just a few states.

Do you have to be a Delaware resident to form a Delaware company?

You do not have to live in, or even visit, the state of Delaware in order to form a Delaware company. Other than residents of restricted countries (Cuba, Iran, North Korea and Syria), anyone can form a Delaware company and operate lawful business activities from anywhere in the world.

Can a Delaware company do business in the Hague?

A Delaware company may, if you are doing business with any of the countries that participate in the Hague Conference, need to utilize documents that have been certified by the state of Delaware and affixed with an Apostille by the Delaware Secretary of State.

Do you need a physical address in Delaware?

A Delaware Registered Agent not only has a physical address in Delaware but is also obligated to be available during normal business hours in order to receive documents sent by the Delaware Secretary of State to your company.

What does a registered agent do in Delaware?

A Delaware Registered Agent acts as the liaison between your company and the Delaware Secretary of State, and you can rely on your Registered Agent to send certain legal documents, such as service of process and Franchise Tax notices, to your company in a timely manner.