This could be worthwhile even for the UK startups that YCombinator has funded. This is due to tax regulations that affect IT contractors and IT startups. UK IT

This could be worthwhile even for the UK startups that YCombinator has funded. This is due to tax regulations that affect IT contractors and IT startups. UK IT contractors are encouraged to incorporate for the purposes of professional liability. However, many solo contractors kept large proportions of fees in the shell company to cover lean periods while minimising tax. Tax officials took a dim view of this practice and changed the regulations. Although the regulations are intended to cover contractors, it could also affect a startup. Incorporation in Delaware would remove this limitation.