Delaware has a reputation for being one of the most business friendly states in the U.S. The state’s tax laws are extremely forgiving, making it one of the top states for tech startups looking to incorporate. In fact, Delaware’s tax loopholes have allowed corporations to avoid paying over $9 billion dollars to other states.

Delaware has huge advantages for those looking to start a new business, as well. Even if you have no immediate plans to go public with your business, Delaware’s tax policy nevertheless provides benefits. The lack of a sales tax goes a long way in keep costs down, as does the absence of a personal property tax.  

The state is also a great place for those seeking investment in their young business, as interest on investments is not taxed, thereby increasing the incentive for venture capital firms to funnel into startups.

Additionally, Delaware is conveniently located near all of the major cities of the Northeastern United States, yet boasts a considerably lower cost of living. Further advantages are its well-educated talent pool from which to draw employees and a high productivity score.

DEWilmingtonNew Castle

Only cities with over 50,000 inhabitants are reported in the results. Some data had to be interpolated to the county level and extrapolated to all the cities in the county. We concentrated on the following metrics to obtain our ranking: Cost of livingBest state for businessUnemploymentKauffman index, and Universities.


I'm an entrepreneur myself. When talking to others who want to start their own business, they often get wrapped up in the nitty gritty of paperwork and forming the company. They forget that what really matters is customers, sales, and profit. That's why I created How to Start an a simple resource and guide so you can spend less time on forming your company, and more time on building it.

My lawyers want me to remind you that I'm not a lawyer and that I'm completely unqualified to offer legal advice. This site is meant to serve as a reference for you on your journey. If you have questions or concerns, please contact a qualified lawyer (or accountant) to help you. Also, as a general rule, never take random legal advice on the internet.