Take a Great Advantage of Delaware Incorporation

Delaware is the recognized leader in corporate, limited liability, and limited partnership law. The owners and operators of a Delaware corporation or limited liability company are not required to be identified in the public records of the State. Also, Delaware has a minimal corporate franchise tax (as low as $175.00 per year) that is not based on income. In addition, there is no Delaware income tax for Delaware corporations or limited liability companies that do not do business in Delaware.

Delaware is recognized as having a favorable tax climate. It has no sales tax, no personal property tax, and no intangible property tax on corporations. In addition, there is no taxation upon shares of stock held by non-residents and no inheritance tax upon non-resident holders, no tax on inventories and no tax on process machinery or equipment, and no personal property tax, no unitary tax, no State-level real property tax. Also, the corporation may keep all of its books and records outside of Delaware. You or your client can take advantage of these benefits through the use of a Delaware corporation.

By utilizing a Delaware corporation to own your boat or aircraft rather than owning it as an individual, you may be able to shelter yourself from the above-mentioned taxes. Many boat or aircraft owners recognize that a sales/use tax will be due in the State they are actually keeping or using the vessel. They also understand that under ordinary circumstances, when they choose to sell the vessel, the new owner will have to pay a sales tax on the purchase of the vessel. With this in mind, they can choose to put the vessel into a Delaware corporation and pay the tax in the corporate name (deriving other benefits incorporation has to offer, such as limited liability). When the vessel is subsequently put up for sale, the owner has the flexibility of selling the vessel as an asset of the corporation or selling the entire corporation, of which the vessel is an asset. The sale can be accomplished by simply transferring the shares of stock in the corporation over to the new owners. This arrangement can be very attractive to the prospective purchaser because the title to the vessel has not changed hands - it is still registered with the corporation. Therefore, no sales tax may be assessable on the transfer, and no re-registration costs are incurred. Additional tax savings may be realized if the vessel is used for business purposes.