Incorporating in Delaware allows a company to protect the individual members from liabilities the company itself may incur. When a sole proprietorship or partnership is sued you risk losing your personal assets. When you incorporate in Delaware a separate legal person is created, protecting personal assets. As a shareholder, officer and/or director it is possible to have control over Delaware corporations.
The main reasons for Incorporating in Delaware are as follows:
• Creating a separate legal entity for personal protection
• Building corporate credit
• Separate liability for corporate debts
• A broad range of powers beyond that of a sole proprietorship
• Tax Savings
• Law Suit Protection
• Small claims court benefits
• Perpetual duration
• Deductible employee benefits
• The ease of raising capital
Determining whether or not a Delaware Corporation is the right configuration for your situation is a decision to be based upon many important factors. Talking to a qualified expert is a must in this situation.