Incorporating in Delaware is only useful when a company does not receive revenue in Delaware


Thus, if a company does not receive revenue from Delaware, establishing a corporation in here provides tax advantages



Starting a corporation in Delaware MIGHT offer tax advantages to corporations that neither work in or receive revenue in the state of Delaware.

Establishing a corporation in Delaware offers tax advantages only when the corporation does not work in this state. This translates into 4-5% in tax savings comparing Delaware to other US states.

The real advantage of a corporation established in Delaware emerges if the corporation does not work in the State of Delaware nor produces revenues in the United States. This is because a corporation in Delaware that produces revenues, for instance, only in the state of New York, saves state taxes in Delaware, but needs to pay state taxes to the state of New York. If this is the case, there is no point in incorporating in Delaware.

Furthermore, federal income taxes are always applicable, even to companies established in Delaware.