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How is this fundamentally different from our beloved SV startups organizing themselves as Delaware C-Corps?
by Steko 10y ago
How is this fundamentally different from our beloved SV startups organizing themselves as Delaware C-Corps?
- tedmiston 10y agoThat's really more for investors than the startups themselves.
- yompers888 10y agoOne is a parasite on anyone who would dare innovate, and the other is trying to avoid overpaying taxes.
- whamlastxmas 10y agoLess to do with taxes, more to do with having a well established and understood regulations and legal system.
- taf2 10y agoFor starters, most people incorporate in delware whether they are in SV or not. It's just a better place for taxes. This is available to anyone who wants to incorporate. Does not require you are in the know or have a relationship with a judge...
- markdown 10y agoNot really true anymore. I believe Wyoming is better for taxes these days. It's more about there being a good body of relevant established case law in Delaware.
- caf 10y agoIt's really not. They're both forms of jurisdictional arbitrage.
- teleclimber 10y agoIt's a similar legal maneuver but with very different outcomes. In one case you're jut trying to set your company up to avoid paying too much taxes, in the other you're forcing the people you're trolling to a) travel far from home to defend themselves against your likely unfair lawsuit, and b) be at a disadvantage in front of a judge who is known to tilt things in your favor.