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CT Expert Insights: Four Reasons to Incorporate in Delaware

Planning to incorporate your business? Delaware has quickly become one of the most popular states to do so. CT’s Senior Manager of Government Relations, Alan Stachura, reviews the top benefits of incorporating in this business-entity-friendly state. 




Hi, I’m Alan Stachura. I’m the Senior Manager of Government Relations at CT Corporation. I’ve been with CT for about 16 and a half years.

There are really four main reasons for Delaware’s popularity to as a place to incorporate a business.

  • Number one is the business entity statutes.
  • Number two is the unique court system.
  • Number three is the body of case law that comes from the unique court system.
  • And finally, it’s the unique level of service that comes from the division of corporations.

So the business entity statutes in Delaware are very unique. Delaware set out to make sure they were as clear, concise, and easy-to-follow as possible. They had this crazy idea that if the average person could open the law book, and read and understand the statutes, that more people could utilize the law that had been set forth.

Delaware also has a very unique court system. The Court of Chancery has been around since 1792. It’s devoted solely to business and corporate cases. So the judges are experts. They are appointed by the governor, they serve 12-year terms, and you don’t have any jury trials or punitive damage awards, so there are certainly a lot of benefits in that regard.

Delaware’s body of case law is very unique compared to other jurisdictions. Because Delaware has a very specialized court and such expert judges, they truly have a huge amount of case law in existence. We say it is the largest volume, most complete and comprehensive out there. It is the basis for all Delaware business cases, most U.S. non-Delaware business cases, and many international cases. In fact, we often joke it’s the international gold standard.

And finally, Delaware has a very high level of service. Their employees work very differently from many other states. In fact, the Division of Corporations is open until midnight, Eastern Time, Monday through Thursday, and 10:30 p.m. Eastern Time on Friday. They have the country’s fastest expedite service, where they can have your filing approved in 30 minutes or less. And many offerings such as good standings can be offered and delivered in near real time.

Now, Delaware is not always the least expensive, but there are certainly a lot of advantages that outweigh some of the premium price offerings that they charge.

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