One of the best parts of being a business lawyer at Capital Partners Law is working with South Florida’s entrepreneurs. By doing so, we get to provide the legal advice and advocacy people need to make their dreams come true. This means we answer lots of questions along the way – and one we get the most often is – whether or not people starting businesses in South Florida area should incorporate them in Delaware. Here’s what you should know.
General considerations when deciding to incorporate a business in Delaware
The reality is that even though incorporation in Delaware is a popular choice, it is not the best choice for everyone. Whether it is the right one for you depends on your unique circumstances. Some of the key factors to consider when making this decision are:
- The size of your business
- The type of business
- Financing (type and amount needed)
- Tax considerations
Of course, these aren’t necessarily the only considerations. As experienced business attorneys, we have the skills and knowledge needed to assess your goals and sort through the pros and cons of incorporating your business in Delaware before you make this decision.
Advantages of incorporating your business in Delaware
Here are just a few of the “pros:”
- Delaware bills itself as a “business friendly” state.
- It has a court that specializes in corporate cases.
- There are limited tax benefits.
- Incorporating a business in Delaware is relatively quick and easy compared to other states.
- Incorporation in Delaware is appealing to some financial backers, such as venture capitalists and outside investors.
Judging by this list, it is easy to see why incorporating a business in Delaware is so popular, especially for larger companies. However, if you are starting a small or average size company, this may not be the best choice for you.
Disadvantages of incorporating your business in Delaware
If your company’s headquarters will be located in Fort Lauderdale, for example, or anywhere else in Florida, and you won’t be doing business in Delaware, incorporating there may not be worthwhile. This is because you’ll incur administrative and filing costs that are assessed in both states. You’ll also have to meet the legal reporting requirements for both. Finally, you may also incur additional administrative costs if you need a registered agent and/or corporate attorney in Delaware. In other words, depending on your circumstances, incorporating your business in Delaware may end up being more expensive than incorporating in Florida or wherever else you do business.
If you are starting a business – especially for the first time – it is easy to feel intimidated and overwhelmed. But you don’t have to figure everything out on your own. The business lawyers at Capital Partners Law here to help with all of your incorporation needs. Contact us to schedule an appointment today.
What Should You Do Next?
If you are interested in learning more or speaking with an attorney at Capital Partners Law, there are plenty of ways to get in touch:
- Call us toll-free at (833) 7-CAPLAW.
- Find your nearest office and call to schedule a free consultation.
- Complete our New Client Request Form online. (No obligation – an attorney will review your information and contact you to discuss your needs).
- Schedule a Free Initial Phone Consultation online now.
- Schedule a Free Initial Video Consultation online now.
This article is for informational purposes only. It does not create an attorney-client relationship with any reader nor should it be construed as legal advice. If you need legal advice, please contact our firm.