One of the best parts of being a business lawyer at Eskander Loshak LLP 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.
- 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.
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 Eskander Loshak LLP here to help with all of your incorporation needs. Contact us online or call (954) 334-1122 to schedule an appointment today.