Falcon 48 -
An incorporated company in the United States has the same legal standing as a "living person." This unique structure allows individual company officers to have separate legal liability and protection from certain wrong doing. Unlike England and other countries an American Corporation can only be held liable for the value of its assets. It can act as a person etc. and not be put in prison. This is one of the reasons that American companies have prospered in comparison to other nations - company officers will take risks and seek aggressive advantages.
Delaware being a very very small state with little population and few resources makes a "great state" of itself by providing very advantagious business laws for corporate use.
- The state business law is one of the most flexable in the country.
- The Delaware Court of Chancery focuses solely on business law and uses judges instead of juries. An advantage for shareholder lawsuits. For corporations with thousands of shareholders this can be a big plus.
- For Corporations, there is no state corporate income tax for companies that are formed in Delaware but do not transact business there.
- Taxation requirements are often favorable to companies with complex capitalization structure and with large shares of stock.
- There is no personal income tax for non-residents.
- Shareholders, directors and officers of a corporation or members or managers of a Limited License Corporation LLC don't need to be Delaware residents.
- Stock shares owned by persons outside Delaware are not subject to Delaware taxes.
It's really all about money - and the politics of other states.