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Delaware: The right place to form your business entity



 

 

The biggest, brightest and fasting-growing companies are incorporated in Delaware. The State’s infrastructure, courts and laws create an environment for success and growth that investors can trust. 

 

Need to raise capital? Investors prefer Delaware entities

In 2013, 83 percent of all new U.S. Initial Public Offerings (IPOs) chose to incorporate in Delaware. The state remains the chosen home for more than half of all U.S. publicly traded companies and 65 percent of Fortune 500® companies, according to the 2013 Annual Report of the Delaware Division of Corporations released by Secretary of State Jeffrey W. Bullock.

 

83 percent of all new U.S. IPOs chose to incorporate in Delaware.

 

Of the 71 venture-backed companies incorporated in Delaware in 2013, 69 of them chose Delaware to launch their IPOs as Delaware business entities, including global real estate network REMAX Holdings, social media giant Twitter, and movie theater chain AMC Entertainment.

 

Vehicle of choice

Overall, formation activity in Delaware increased 35 percent since January 2009, bringing the total number of entities to more than 1.2 million. Of these, some 288,000 are Delaware corporations and more than 912,000 are alternative entities.

 

1.2 million Delaware business entities.

 

The 2013 data underscores the value that Delaware provides its corporate citizens. “Now more than ever, investors from around the world are looking for a neutral vehicle that facilitates business transactions and offers an excellent forum for dispute resolution,” says Secretary of State Bullock.

Delaware entities are increasingly the vehicle of choice for legal entities around the world, explains Andrea Tinianow, Director of Corporate and International Development for the State of Delaware. “Delaware entities give businesses greater flexibility to operate and grow, and at the same time, provide managers and stakeholders alike with access to the state’s preeminent business courts, where disputes can be resolved quickly, and a body of case law that provides substantive precedent that they can use to govern their companies.”

 


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