Delaware Corporate Services
Delaware's corporate income tax law is structured so that corporations establishing a passive Delaware investment holding company can increase the net return on corporate assets and minimize state and local taxes on their income from intangible assets.
Over the years, numerous corporations have taken advantage of the many benefits that result from establishing a Delaware Investment Holding Company. Businesses that benefit include:
- any corporation or member of a corporate controlled group that holds a portfolio of cash or securities.
- a corporation that holds the rights to patents, trademarks or copyrights, or other income-producing intangible property..
- a corporation that owns stock in a subsidiary
- a corporation that has intercompany debt or income from the ownership of limited partnership interests.
Establishing a Delaware Investment Holding Company
For an investment holding company's income to be exempt from Delaware income tax, the activities of the holding company should be confined to the maintenance and management of intangible investments and the receipt and distribution of the income from those investments. In addition, the investment holding company must establish commercial domicile in Delaware.
Commercial domicile simply describes the establishment of a connection with Delaware while simultaneously cutting as many ties as possible with the parent company's state of domicile. To withstand an audit challenge, virtually all activities on behalf of the Investment Holding Company should be conducted in Delaware.
A variety of steps can be taken to establish commercial domicile in Delaware. Our services include:
- post office box and mail services as well as telephone and fax listings
- secretarial services, office space, and board meeting facilities for officers and employees to conduct their duties on behalf of the company in the state of Delaware
- directors, officers, and employees
- safekeeping of corporate records and documents
- maintenance of accounts payable and accounts receivable
- preparation and filing of federal, state, and local payroll taxes
- Delaware Registered Agent services
Investment Management and Corporate Custody Services
In order to maintain corporate substance, all investment decisions of the Delaware Investment Holding Company should be made in Delaware. Christiana Trust provides the investment services that help you meet your investment objectives while enhancing your corporate substance in Delaware.
Our management of your Delaware investment portfolio involves both long-term and short-term investment options. Our cash management vehicles offer competitive returns, high quality, and daily liquidity. We give you a choice of several high-yielding money market funds and other short-term vehicles for the overnight investment of cash balances. Excess daily balances can be swept from your checking or custodial accounts.
Our investment process is carefully structured and customized to your holding company's needs. The securities we choose on your behalf meet stringent criteria for quality and have the potential for earning highly competitive total returns. Our disciplined approach stresses active management with due consideration to operational cash requirements.
In addition, we can provide:
- traditional banking services
- investment performance reports
- custody of all assets
- income collection and reporting
- complete record keeping
- daily investment of cash balances with year-end tax reporting
- timely and concise custody statements
Your Delaware Servicer
Christiana Corporate Services, Inc. can serve as your Delaware servicer. Our experienced professionals can deliver competitive investment returns and strengthen your investment holding company's Delaware connections. We have the experience and systems in place to help you establish commercial domicile and to meet your Delaware Investment Holding Company's corporate custody and investment management needs.