Delaware continues to be a popular situs for business formations. The State reported a record-breaking number of new business entities last year, according to statistics from Delaware’s Division of Corporations.
Approximately 169,000 Delaware entities were formed in 2014, marking a four percent increase over the previous record of 162,000 set in 2007. In October alone, 15,474 businesses were formed, setting a new record for best overall month of entity formation.
The State attributes the record-breaking activity to the continued economic recovery and to Delaware’s growing dominance as jurisdiction of choice for entity formation.
“The improving health of the national economy is driving the need for new entities, and Delaware is the natural choice,” says Rick Geisenberger, Delaware’s Director of the Division of Corporations. “We offer the country’s preeminent business courts for fast and fair dispute resolution, an unmatched body of corporate law, and a service-driven business model at the Division of Corporations that our corporate citizens recognize and value.”
Geisenberger notes that the Division of Corporations has seen improved formation activity in 56 of the last 62 months, and that activity in 2014 was up 10 percent over the previous year.
As of April 2014, 65.6 percent of all Fortune 500 companies were incorporated in Delaware, up from 58 percent in 2000, according to data from the Division of Corporations. In addition, 85 percent of all initial public offerings during the last decade involved a Delaware company, compared to 65 percent during the entire 1990s.
“We fully expect Delaware’s corporate business to expand in the coming years as global investment continues to expand,” Geisenberger affirms. “Delaware is the clear choice for the international business community, as we can provide companies worldwide with the technical expertise and legal clarity they seek when forming companies and transacting business.”