4 ms·
He's assuming you're going to raise money. VCs and their lawyers prefer Delaware incorporations because everything's business-friendly, there's well-establishe
by gyardley 17y ago
He's assuming you're going to raise money.
VCs and their lawyers prefer Delaware incorporations because everything's business-friendly, there's well-established case law, and therefore things like financings are easier to do.
- travisp 17y agoThat's only part of what he says, and the rest doesn't seem really valid to me. He said: >1. Flexible Laws. Yes, this is slightly more attractive for VCs. But I imagine, unless you are in an odd state, that VCs can handle corporations incorporated in, say, California. >2. No Wildcard Juries. If you're sued in Delaware, which you don't have to be. >3. Precedence = Less Litigation. Ditto. >4. It’s Free! (Well, almost) Foreign corporation registration may end up making it more expensive. > A little bit cheaper than California ($100..but they nail you for $800 every year in franchise fees) You don't get out of California franchise fees by incorporating somewhere else. See California's Franchise Tax Board document FTB 1063. >5. Privacy Since you may have to register as a foreign corporation, this anonymity in Delaware may be moot.
- freetard 17y agoWhat if you live outside of the US?