Delaware vs Florida: Which State Should You Incorporate In?

When incorporating in America, the two most preferred states are Delaware and Florida. Both have their own unique advantages. Delaware is famous for its courts specialized in corporate law and business-friendly laws. Most Fortune 500 companies are registered in Delaware. Delaware's main advantages include strong privacy protection, shareholder-friendly laws, and a predictable legal system. However, incorporating in Delaware is more expensive and you must pay Franchise Business">franchise tax if you don't have physical operations in the state. Florida, on the other hand, is a state with no income tax, low costs, and fast setup processes. Florida can be more cost-effective especially for small and medium-sized businesses. If you live in Florida or will run your business there, forming a Florida LLC makes sense. However, if you plan to seek investors or consider going public, Delaware is a more prestigious and preferred option.