Are you thinking about incorporating your business? You'd be hard pressed to find a better place to do it than Delaware. Despite its small geographic stature, the First State is routinely home to thousands of newly incorporated businesses every year. In 2014 alone, the state saw approximately 169,000 new companies form under the Delaware General Corporation Law — not only a significant number in its own right, but also marking a 4 percent increase over the state's previous high of 162,000 in 2007, breaking a seven-year-old record.
Last year also saw Delaware mark its best month ever for overall business creation when 15,474 businesses incorporated in the state in October, knocking down the record of 15,218 held by May 2007. In fact, according to The News Journal, Delaware set eight all-time monthly business creation records throughout 2014.
But what's responsible for this uptick in business incorporation? According to Deputy Secretary of State Richard Geisenberger and University of Delaware professor Charles Elson, growth within the United States' overall economy — which saw a GDP increase of 5 percent in Q3 2014 — in turn spurs economic growth in Delaware too.
"Our numbers are a bellwether of the national economy. As goes the rest of the country, so goes Delaware," Geisenberger tells The News Journal. Elson adds that, "Delaware is connected to economic growth [...] When the economy expands more, people incorporate here."
The 169,000 figure includes both in-state and out-of-state businesses. While the official numbers don't distinguish between the two, Geisenberger explains that the effect for Delaware's citizens is all the same either way, generating revenue that is ultimately reinvested back into the state's economy.
With some of the most business-friendly incorporation laws in the country, Delaware offers a foundation for success for any up-and-coming entrepreneur looking to form their own company.