Delaware follows a Tort system that basically means that, in the event of an accident, someone must be found at fault. Then, the at-fault party is responsible for the costs of damages caused by their vehicle in the accident. Therefore, Delaware has certain liability requirements to protect its drivers.

In Delaware, drivers are required to establish financial responsibility through standard liability coverage. This coverage means the driver is able to pay for damages caused by their vehicle in the event of an accident. Some states allow residents to self-insure or make a deposit at the DMV to meet this requirement, but in Delaware, liability coverage is the only way to satisfy this requirement.

Delaware residents must purchase policies that include the state’s minimal liability amounts. These are $10,000 for property damage, $15,000 for bodily injury per person, and $30,000 bodily injury per accident. This basic coverage, often referred to as 15/30/10 coverage, will satisfy the state’s liability requirements, but, of course, drivers may elect to have additional coverage.

Additionally, Delaware residents must carry personal injury protection of at least $15,000 per person and $30,000 per accident. Personal Injury Protection (PIP) helps pay for medical expenses resulting from an accident.

Delaware drivers have the option of choosing Uninsured/Underinsured Motorist coverage. Delaware does not require this type of coverage, but all drivers should be aware of this type of coverage and its benefits.

Now that you know the legal requirements, you may need to check with your lender if your car is financed. Auto loans usually require additional coverage beyond the state minimum. This information can be found in your buyer’s documents or you may choose to call your lender directly to find out their policy requirements.
Once you have covered all the required limits, you are ready to choose what other coverage you need, if any. Depending on the age and value of your vehicle, you may benefit from obtaining comprehensive and/or collision coverage as well.

If you own your own company and you’ve decided to go down the path of incorporating it, you should be aware that you don’t have to incorporate in your own state where the business is based. You can in fact incorporate your company in any state within the US, and if your business is large enough, it may well make sense to do so, with the state of Delaware offering a number of distinct advantages.

If your business is relatively small in size, the costs of employing an agent and of incorporating outside of your home state, may remove any advantages of incorporating elsewhere. In general you should stick to your own state if your business is small.

One of the costs you will incur are those of an agent to represent you in the state you choose. If you decide to incorporate in a state outside of your own, your business will be classed as a foreign corporation, and you will therefore be required to use an agent to represent you.

Also, you should consider your geographical trading area. If your business is based solely on your home state, it will probably make most sense to incorporate there. But if you trade across multiple states, incorporation elsewhere may make sense.

So, why incorporate in Delaware? What are the benefits that make Delaware so appealing for companies to incorporate there?

1.Delaware offers favourable tax treatment in the form of low franchise taxes and no state corporate income tax for companies that operate outside of Delaware

2.Delaware has low incorporation fees

3.Delaware courts are very pro-business and support companies incorporated in the state, with much of its corporate law written to protect the rights of shareholders

4.There is no minimum capital requirement when incorporating, and only one incorporator is required

5.The state has no sales tax, personal property tax, or intangible property tax on companies incorporated there

6.A company can keep its books and records outside of the state

Because of all these advantages, over 250,000 companies are incorporated in Delaware. In fact over fifty percent of all companies trading on the New York Stock Exchange are Delaware corporations.

You should seek qualified legal advice before deciding to incorporate outside of your own state, and then decide whether or not you will benefit from the advantages above.