Delaware: The First State

Rivers and forests dot Delaware’s landscape. The corporate headquarters of global players, which shape the economic picture, stand in contrast to this. The state, located on the East Coast of the United States, is home to nearly one million people. This ranks 45th nationally in terms of population. Delaware has only three counties and thus the fewest of all states. It is also the second smallest in the country at just under 6,500 km².

If you’re considering locating your business in Delaware, you’ll be in the company of Fortune 500 companies, startups and family businesses. A competitive business climate, a good location with reliable infrastructure and a highly educated workforce make Delaware one of the best states for your investment.

According to ehuacom, the “First State” is home to more than a million companies and is the birthplace of international top companies such as Coca-Cola, Bank of America or AT&T.

Delaware Location Map

TOP ADDRESS IN THE MID-ATLANTIC REGION

US News & World certifies that Delaware has an efficient business climate. The state is in sixth place in the ranking. According to Forbes, Delaware has the second lowest cost of doing business in the United States. Compared to the national average, the costs are 25 percent lower. This is all the more astonishing since the north-east is generally regarded as a high-cost region.

These are certainly reasons why companies like FMC Corporation or JP Morgan Chase operate from Delaware. Companies also benefit from the extremely favorable framework conditions with regard to taxes. In addition to a corporation tax of 8.7%, there are no other taxes such as sales tax or value added tax. Tax liabilities are reduced if the company has significant Delaware payroll or property. Local investments are also rewarded.

The “First State” offers an economically attractive environment that you will not find a second time in the Mid-Atlantic region. The starting point for founding a company and positioning it strategically is excellent here.

NATIONAL NUMBER 1 FOR PATENTS PER CAPITA

In the “First State” a collaborative spirit is combined with interdisciplinary strength. This interaction ensures a multitude of innovations. A multitude of powerful incubators and co-working spaces amplify this effect. The track record includes some of the big names in today’s business world including DuPont, Gore and Incyte.

Startups are supported in Delaware by a diverse workforce and an ideal location in the center of more than 100 top universities. The business-friendly legal and regulatory climate are just a few of the many benefits that facilitate innovation in Delaware. In the “US State Innovative Index” (Bloomberg, 2020), the “First State” also took an eighth place, as well as in the rating of the “Most Innovative State” (Wallethub, 2021).

EXCEPTIONAL TALENT POOL

Delaware has the highest concentration of chemists, chemical engineers, and chemical technicians in the country. Delaware also has top workers in all other areas. Delaware boasts the fourth-highest concentration of PhDs in science, engineering, and health. Overall, it can be stated that there is one of the best talent pools in the country.

In addition to the universities already mentioned, a high concentration of research laboratories and research-intensive companies contributes to the fact that not only the qualifications of the talented are upheld, but also those of the employers.

GREAT INVESTMENT IN THE PORT OF WILMINGTON

The Port of Wilmington, Delaware is a strategically located deep-water port at the confluence of the Christina and Delaware rivers. It is only 100 kilometers from the Atlantic Ocean. The port serves more than 200 million North American consumers and is North America’s premier fresh produce port with the largest dockside refrigeration complex on the continent.

In 2018, Emirati port operator Gulftainer signed a 50-year lease with the state of Delaware. Gulftainer will invest $600 million over the period and fivefold the port’s capacity. The port is to be established as the largest logistics facility on the Delaware River.

DELAWARE INCOME TAX

Delaware charges an income tax of 2.2 – 6.6% depending on income. In addition, federal income taxes are payable.

CORPORATE INCOME TAX IN DELAWARE

Delaware has a corporate income tax rate of 8.7%. In addition, federal corporation tax is payable.

SALES TAX IN DELAWARE

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales Tax Rate in Delaware

Delaware does not collect sales tax.