Business Environment

Business Environment

Business Environment

1^st

Best state for manufacturing sector tax favorability (Tax Foundation 2021)

3^rd

Best business environment in the country (U.S. News and World Report 2024)

2^nd

Best corporate tax favorability for new firms (Tax Foundation 2021)

3^rd

Best corporate tax favorability for mature firms (Tax Foundation 2021)

+1.9M

Business entities are incorporated in Delaware

68%

Fortune 500 companies incorporated in Delaware

Delaware Economic Overview

An Efficient Business Climate that Delivers Proven Results

Delaware is home to a highly attractive economic environment where today’s companies excel. Here, we merge an accessible and willing government with a low cost of doing business and powerful legal, governing, and corporate tax regulations that make Delaware one of the best places to incorporate your business and strategically position your company.

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Cost of Doing Business

Low Costs, High ROI

Ranked America’s No. 3 Best Business Environment by U.S. News & World Report in 2024

As the state with the third best business environment in America, Delaware is a game-changing location for companies choosing to operate on the East Coast. Delaware has the second lowest tax burden for new firms and the third lowest tax burden for mature firms. In a high-cost region like the Northeast, that makes a big difference ― just ask companies like Incyte, JPMorgan Chase, and Chemours.

Tax Climate

View of buildings along 11th Street at sunset in downtown Wilmin

The Complete Package

Delaware’s Business Tax Climate Balances Perfectly with Our Premier Legal and Regulatory Environment

Delaware is an excellent state for business taxes. The state has no sales tax, no personal property tax, no inventory tax, and no value-added tax (VAT). Delaware has a corporate income tax rate of 8.7%―one of the more competitive rates in the Mid-Atlantic―and transitioned to single sales factor apportionment, which rewards companies for investing in Delaware and reduces the tax liabilities of businesses that have significant property and payroll in the state. Thanks to this and our other pro-business advantages, more than a million businesses, including Fortune 500 companies like AT&T, Bank of America, Coca-Cola and Wal-Mart, have chosen to incorporate in Delaware.

Business Incorporation

Benefits of Incorporating in Delaware

The Nation’s Second Smallest State Punches Above its Weight in Business Incorporations

Forming a business in Delaware is easy thanks to two important factors:

Favorable Tax Structure: Ranked among the top tax systems in the U.S., Delaware’s tax laws and regulations support the development of fast-growing companies.
Corporate Law Experience: Founded in 1792, the Delaware Court of Chancery is one of the most respected chancery courts in the nation, with considerable expertise in adjudicating some of the nation’s most significant corporate legal cases.