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Old 02-24-2009, 11:40 AM
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Corporation in DE

I need to know why is convenient to form a corporation (holding) in Delaware considering the company will operate at Miami. Is there a tax saving and which is??



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Old 02-24-2009, 02:18 PM
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There are many reasons why Taxpayers have chosen Delaware State as their State of incorporation. The following are some of the business reasons as shown below:

1.Shareholders of a Delaware Corporation can act in writing instead of holding meetings.
2.Corporations can add people to the board who are not shareholders.
3.Corporations can transact different kinds of business under one corporate roof.
4.Corporate records need not be kept in Delaware.
5.One person can act as the only officer, director and shareholder of a Delaware corporation.

But there are also some tax benefits as well and these are as follows;

6.No Delaware income tax is charged to companies that do not do business in Delaware.
7.Delaware has no sales or personal property tax.
8.Delaware State assesses very low franchise tax of $75.00 in many cases and $250.00 annual filing fees for L.L.C.’s

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Old 02-24-2009, 02:49 PM
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Delaware Corp.

Thanks. Between Miami (place from we will operate) and Delaware is there substancial differences related to tax matters?. Or, more specifically, if I incorporate in DE you told that is no income taxes, but do I even have to pay the Florida taxes if we operate from Miami? And in any case do I have to pay de federal taxes always?? Thanks a lot for your great help. JB.

Quote:
Originally Posted by TaxGuru View Post
There are many reasons why Taxpayers have chosen Delaware State as their State of incorporation. The following are some of the business reasons as shown below:

1.Shareholders of a Delaware Corporation can act in writing instead of holding meetings.
2.Corporations can add people to the board who are not shareholders.
3.Corporations can transact different kinds of business under one corporate roof.
4.Corporate records need not be kept in Delaware.
5.One person can act as the only officer, director and shareholder of a Delaware corporation.

But there are also some tax benefits as well and these are as follows;

6.No Delaware income tax is charged to companies that do not do business in Delaware.
7.Delaware has no sales or personal property tax.
8.Delaware State assesses very low franchise tax of $75.00 in many cases and $250.00 annual filing fees for L.L.C.’s



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