Economic Overview

Low Costs, High ROI

Ranked America’s No. 8 Business Environment by U.S. News & World Report

With the fifth-lowest business costs in America, Delaware is a game-changing location for companies choosing to operate on the East Coast. Our cost of doing business is 16 percent below the national average. In a high-cost region like the Northeast, that makes a big difference―just ask companies like FMC Corporation, JPMorgan Chase and Chemours.

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 is in the midst of a transition to single sales factor apportionment by 2020, 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.

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:

1. 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.
2. 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 most nation’s most significant corporate legal cases.