Save your corporation significant amounts of state tax dollars every year by establishing a Delaware Holding Company (DHC). A DHC is an effective tool to shield a corporation's passive income from home state taxation.
Delaware corporate income tax law provides an exemption from corporate income tax for corporations whose activities within Delaware are confined to the maintenance and management of their intangible investments. The collection and distribution of income from such investments or from tangible property physically located outside Delaware is also exempt.
Intangible investments specifically include stocks, bonds, notes and other debt obligations (including the debt obligations of affiliated corporations), patents, trademarks, and similar types of intangible assets.