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.