Why incorporate in Delaware and not your home state?
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What are the specific reasons to incorporate your company in Delaware instead of the state you reside in? Almost everyone states that Delaware is the primary choice for businesses.
What are some pros and cons of forming your startup there?
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1 Answer
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The main reason is that Venture Capitalists prefer DE-based corporations when considering investments. DE business law and courts are setup in a very favorable way for corporations.
If you don't plan to seek investments soon, you are better off incorporating in your local state as there are many advantages - simpler paperwork and taxation rules, support from local community and associations, etc.
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If raising money, DE is the choice for sure. If not, one reason why not to incorporate in DE: http://danashultz.com/blog/2009/04/29/why-not-incorporate-in-delaware/ – Chrissie Gray 10 years ago
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