Delaware Corporation

AAA

DEFINITION of 'Delaware Corporation'

A corporation that is legally registered in the state of Delaware, but may conduct business in any state. Delaware first began to adapt its laws in the late 19th century, making changes that would attract businesses away from neighboring New York State. Over time, Delaware became a respected state in which to incorporate, even if the majority of a company's business was conducted outside the state.

INVESTOPEDIA EXPLAINS 'Delaware Corporation'

Incorporating in Delaware has become widespread among large U.S. companies; about half of the S&P 500 members are incorporate, especially those in the financial sector. Delaware has business-friendly usury laws, which allow banks and credit card companies to have much more freedom to charge high interest rates on loans. These laws can be imported to other states, giving the companies what is essentially a nationwide blanket.

Delaware's Court of Chancery is a well-respected court of equity that resolves disputes between Delaware corporations and has an extensive set of precedents, statutes and case studies from their 200-plus years of operation. Decisions from the Court of Chancery have routinely set the benchmark for U.S. corporate law; the court's experience can be very beneficial to Delaware-incorporated companies that are seeking guidance on a particular issue.

RELATED TERMS
  1. Commercial Bank

    A financial institution that provides services, such as accepting ...
  2. Usury

    The act of lending money at an interest rate that is considered ...
  3. Moore's Law

    An observation made by Intel co-founder Gordon Moore in 1965. ...
  4. Standard & Poor's 500 Index - S&P ...

    An index of 500 stocks chosen for market size, liquidity and ...
  5. Incorporation

    The process of legally declaring a corporate entity as separate ...
  6. Nevada Corporation

    A business incorporated in the state of Nevada, which is known ...
Related Articles
  1. Don't Get Sued: 5 Tips To Protect Your ...
    Entrepreneurship

    Don't Get Sued: 5 Tips To Protect Your ...

  2. Should You Incorporate Your Business?
    Entrepreneurship

    Should You Incorporate Your Business?

  3. Cash Flow On Steroids: Why Companies ...
    Markets

    Cash Flow On Steroids: Why Companies ...

  4. How to Register Your Trademark
    Investing

    How to Register Your Trademark

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center