Business Entity Regulations
I currently work for a stock brokerage firm that was organized in Delaware but is recognized as doing business in New York. This means that my company is domestic in Delaware and foreign in New York. One of the major reasons that corporations are setup in the state of Delaware is to take advantage of its low taxes (Mallor et. al, 2004, p. 905).
When a corporation is formed it must follow various codes which are different from state to state. Below is a list of the formation codes that corporations must abide by for the state of Delaware (State of Delaware, 2006, September 7):
§ 101. Incorporators; how corporation formed; purposes.
Describes that any person or group of people, companies, corporations, etc. doing lawful business may incorporate by filing with the Division of Corporations in the Department of State. Corporations for constructing, maintaining and public utilities within this State must also follow Title 26 applicable to such corporations. The address for the state of Delaware is:
The Delaware Department of State
Division of Corporations
P.O. Box 898
Dover, Delaware 19903
Phone: (302) 739-3073
§ 102. Contents of certificate of incorporation.
The name of the corporation must state the full name must contain one of the words "association", "company, "corporation", "club", "foundation", "fund", "incorporated", "institute", "society", "union", "syndicate", or "union". The full address of the corporation and the nature of the business, and if they company is issuing shares of stock and how many they would be issuing. The addresses of the incorporators or the directors of the corporation. Any provisions for the management of the business and for the co ...