Delaware Corporation

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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.

BREAKING DOWN '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.

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RELATED FAQS
  1. What are the advantages to registering a Limited Liability Company (LLC) in Delaware?

    When a small business determines that a limited liability company (LLC) is the most suitable business structure under which ... Read Full Answer >>
  2. In what context is a corporation considered to be an individual entity?

    In many legal contexts, corporations possess the rights and responsibilities and carry the liabilities of other individual ... Read Full Answer >>
  3. How do I find a good personal bankruptcy lawyer?

    While it is not necessary to hire an attorney to file bankruptcy, the rules that govern bankruptcy can be extremely complex, ... Read Full Answer >>
  4. What are unregistered securities or stocks?

    Before securities, like stocks, bonds and notes, can be offered for sale to the public, they first must be registered with ... Read Full Answer >>
  5. How does FINRA differ from the SEC?

    With all the financial organizations out there, knowing what they all do can be as complicated as knowing where to invest. ... Read Full Answer >>
  6. Are there regulations against monopolies?

    A monopoly occurs when a single company or group owns all or nearly all of the market for a particular type of product or ... Read Full Answer >>

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