Delaware’s reputation as a business-friendly state isn’t just hype — it’s backed by real advantages that make a measurable difference for entrepreneurs. Here are five reasons why the First State should be your first choice.

1. No Sales Tax — Delaware is one of only five states with zero sales tax. For retailers and service businesses, this means lower prices that attract customers from neighboring states and simplified bookkeeping.

2. The Court of Chancery — Delaware’s specialized business court with expert judges (not juries) resolves disputes faster and more predictably than any other state. It’s why over 60% of Fortune 500 companies are incorporated here.

3. Low Business Formation Costs — Filing an LLC costs as little as $90, and annual franchise taxes for small businesses are among the lowest in the country. Same-day filings are available.

4. Strategic Mid-Atlantic Location — Between New York, Philadelphia, Baltimore, and D.C., Delaware offers access to 40% of the U.S. population within a four-hour drive.

5. Strong Support Ecosystem — From Delaware SBDC to SCORE mentoring, the Delaware Prosperity Partnership, and programs like the Delaware Innovation Space, founders have deep resources.

We hear “shop local” all the time, but what does it actually mean for Delaware’s economy? The numbers might surprise you.

The Local Multiplier Effect
Studies show that for every dollar spent at a local business, approximately 67 cents stays in the local economy — compared to just 43 cents at a national chain. That extra money recirculates: local businesses hire local employees, use local vendors, and reinvest in the community.

Jobs, Jobs, Jobs
Small businesses employ over 200,000 people in Delaware — that’s nearly half of the state’s private workforce. When you choose a local restaurant over a chain, a neighborhood hardware store over a big box, you’re directly supporting your neighbor’s paycheck.

Tax Revenue Stays Home
Local businesses generate sales tax, property tax, and income tax revenue that funds Delaware schools, roads, parks, and emergency services. When spending shifts online or to out-of-state retailers, that revenue disappears.

Community Character
The unique shops and restaurants that line Main Street in Newark, Trolley Square in Wilmington, or the Boardwalk in Rehoboth — they’re what make Delaware special. Chain stores look the same everywhere. Local businesses reflect the personality and creativity of the community.

What You Can Do
Start small. Choose one meal, one purchase, one service per week from a local business. Share your favorite spots on social media. Leave positive reviews. Join your local business association. Every dollar is a vote for the community you want to live in.

Delaware’s small businesses are the backbone of our economy. Let’s make sure they thrive.