How Deleware Has Become a Thriving Business Hub

There are two interesting facts about Delaware that many don’t know about but probably should. The first is that it is the second-smallest U.S. state. Second, it became the first state in the union on December 7, 1787. 

Although small, Delaware is punching well above its weight in the business realm. According to, the state’s official website, Delaware became home to an additional 250,000 new businesses in 2020. That means it has increased the state’s total overall number of LLCs by around 9%. And it has increased the total number of corporations by more than 14%.

Below, we offer more revelations regarding the business growth of Deleware. 

Shedding Light on the Business Scene in Delaware

For those who might not have known, Delaware is a corporate paradise. It houses some of the most celebrated, influential, and profitable businesses in the United States. Some of those businesses include the following:

  • Amazon
  • American Express
  • Disney
  • Google
  • Tesla
  • Walmart

While we are on the topic, it is worth noting that major corporations are not the only ones setting up shop in America’s first state. Delaware is also home to plenty of businesses. According to Crunchbase, a trusted resource for business information concerning private and public companies, roughly 941 startups operate in varying sectors across the state. Given the current growth rate, that number will probably be several thousand in the next few years.

Deleware also houses a lot of medical marijuana dispensaries. There is exponential growth in the cannabis market now that medical marijuana is legal. (Learn how marijuana users can attain a medical marijuana card in Deleware here.)

How Delaware Became a Thriving Business Hub

The main reasons large corporations, small businesses, and even hopeful startups are flocking to Delaware include:

Multiple Tax Benefits

Irrespective of size, popularity, or valuation, all businesses are in business to make money. That means the less they have to pay in taxes, the better. Corporations registered in Delaware not doing business in the state are exempt from paying corporate income tax. Registered corporations doing business in the state also benefit from tax perks. For example, there’s a lack of sales tax, investment income taxes, inheritance taxes, or personal property taxes. 

The long and short of it is businesses of all sizes and valuations can, from a tax standpoint, benefit from doing business in Delaware. 

Well-Developed and Predictable Legal Precedents

Legal problems will inevitably arise when doing business in any state. And Delaware is no exception. In Delaware, all companies can get their legal disputes resolved at the Court of Chancery. Going to the court is ideal instead of going through a traditional trial.  

A Court of Chancery is a court that comprises judges who specialize in corporate law. Having legal disputes resolved allows businesses to benefit from well-developed legal precedents. It results in a faster case resolution, not to mention reduced court costs. A traditional civil lawsuit heard and decided by a jury could take years. In that time, they incur much higher court costs.

So, relying on predictable legal precedents is an advantage to Deleware. 

Quick Incorporation

Delaware also offers a quicker incorporation process than most states. Available data shows that incorporating a business can be completed in as little as one hour. In other states, it typically takes much longer than that, and the process can be taxing. Incorporating your business in Deleware is worth the time and effort because the process is quick and efficient. 

It is also worth noting that Delaware law allows for a single person to hold multiple positions. For example, they can be a CEO and CFO when incorporating a business. This benefit is very beneficial for small startups, in particular. Smaller startups prefer to hire only a few employees. So, holding more than one position is ideal. In most states, small startups must go through the process of becoming a sole proprietorship or LLC first.


In summary, Delaware is a thriving business hub due to several factors. For example, the state offers multiple tax incentives, quicker incorporations, and a faster way to settle legal disputes. Individually, these things are not that big of a deal. But together, they have proven to be enough to draw thousands of businesses to the state.

Leave a Reply

Your email address will not be published. Required fields are marked *