Delaware Secretary of State Report 2023: Key Highlights and Insights
The Delaware Secretary of State has released its annual report for 2023, shedding light on the impressive growth and resilience of Delaware’s corporate environment. This report provides valuable data and insights that highlight why Delaware remains a leading choice for businesses worldwide.
Significant Milestone: Over 2 Million Business Entities
Delaware achieved a remarkable milestone in late 2023, surpassing over 2 million business entities. This growth is a testament to Delaware's robust and business-friendly legal framework, making it a preferred jurisdiction for many companies.
New Business Formations
In 2023, Delaware saw a total of 298,165 new business formations. This reflects the state’s continued appeal to entrepreneurs and established companies alike, from all over the world.
Dominance in Fortune 500 Companies
Delaware remains the domicile of choice for Fortune 500 companies, with nearly 67.6% of these corporations incorporated in the state. This statistic underscores the confidence that major corporations have in Delaware’s legal and business infrastructure.
High Percentage of U.S. IPOs
An impressive 80% of all U.S. initial public offerings (IPOs) in 2023 were registered in Delaware. One of the most notable Delaware companies that went public through an IPO in 2023 was Maplebear Inc., doing business as Instacart, a grocery delivery service, which went public on September 19, 2023. This highlights the state’s pivotal role in supporting high-growth companies and facilitating access to capital markets.
Breakdown of Delaware Business Entity Formations
Limited Liability Companies (LLCs)
- 73.3%
- 218,708 entities
- 20%
- 59,729 entities
Limited Partnerships (LPs) and Limited Liability Partnerships (LLPs)
- 5.7%
- 17,173 entities
Statutory Trusts
- 0.8%
- 2,555 entities
Total Number of Entities
By the end of 2023, Delaware was home to 2,070,347 business entities, nearly twice the number of its residents for that year, which stood at approximately 1,000,000. This includes:
- 1,489,299 LLCs
- 395,759 corporations
- 156,830 LPs/LLPs
- 28,459 statutory trusts.
Conclusion
The 2023 report reaffirms Delaware’s status as the Corporate Capital of the World. The full Secretary of State report can be viewed here. Delaware’s favorable legal environment, efficient services, and strong governance make it an unparalleled choice for business formations. For businesses considering incorporation, Delaware offers unmatched advantages and continues to set the standard for corporate excellence. To take advantage of the best corporate law structure, reach out to Harvard Business Services, Inc. at DelawareInc.com. Our streamlined process makes forming a new Delaware corporation or LLC simple and efficient!
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