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Advantages for Holding Company Operating in Delaware
Corporations whose activities within Delaware are confined to the maintenance and management of their intangible investments or of the intangible investments of corporations or business trusts registered as investment companies under the Investment Company Act of 1940, as amended (15 U.S.C. 80a-1 et seq.), and the collection and distribution of the income from such investments or from tangible property physically located outside of Delaware are exempt from corporate taxation by the State of Delaware.
For the purposes of this statute, intangible investments are deemed to include – without limitation – investments in stocks, bonds, notes and other debt obligations (including debt obligations of affiliated corporations), patents, patent applications, trademarks, trade names and similar types of intangible assets. In certain situations, flow-through income deriving from a limited partnership interest, may qualify as income from an intangible investment.
There are also special situations that can provide Delaware State Corporate Tax savings when forming a leasing company or liquidating a company.
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