The advantages of incorporating here include: The state offers some tax benefits. Delaware doesn't impose income tax on corporations registered in the state that don't do business in the state. Also, shareholders who don't reside in Delaware need not pay tax on shares in the state.

The Delaware Division of Corporations is the state agency that handles all franchise (corporation) tax payments and annual report filings that are due March 1 each year. They also collect the LLC tax that is due June 1 each year.

If you wish to order a copy of an annual report, please call 302-739-3073 for more information. NOTE: Alternative entities (Limited Liability Companies, Limited Partnerships, and General Partnerships) do not currently file annual reports. Annual reports are required for domestic and foreign corporations only.

Being in good standing allows a corporation, LLC, or other statutory entity in Delaware to maintain the rights and privileges of doing business as that statutory entity. Good standing certificates are required when expanding to other states and may be required for financing, business transactions, and licensing.