4 ms·
I hate to be that guy, but no one should take legal or accounting advice from a blog post. There are a lot of good reasons for your company to be an LLC or C-c
by wheelerwj 10y ago
I hate to be that guy, but no one should take legal or accounting advice from a blog post. There are a lot of good reasons for your company to be an LLC or C-corp and there are a lot of good reasons to incorporate outside of Delaware.
Nevada for example also has no corporate income tax. Montana, South Carolina, and New Mexico don't specifically regulate money transmitters.
Delaware is great for share holder rights, but if you don't have a lot of growth or external investors yet, incorporating in Delaware may be overkill as you can always do so later.
Mostly, startups should be focused on product, not things like incorporating until you need to. And by then, spend the lousy 2k on an attorney to advise you and do it properly.
- JumpCrisscross 10y ago> incorporating in Delaware may be overkill as you can always do so later This is not that simple. As a rule, I apply a discount (for legal cost and risk on all sides) to any American company raising funds out of a non-Delaware entity.
- wheelerwj 10y agoi understand its not that simple, thats why im advocating getting legal advice from places other than startup blog posts.
- chrismaeda 10y agoYou're confusing domicile with state of incorporation. E.g. A Delaware corp resident in Nevada pays no state income either. As others have said, if you plan to raise outside capital and have an exit, then you should be a Delaware C Corp. If you are planning a lifestyle business, then an LLC in your state of residence is fine.
- wheelerwj 10y agoim not confusing anything. Deleware C corp is beneficial for a lot of reasons. so is an LLC. Many startups might have both. Corporate structures are significantly more complex than: > if you plan to raise outside capital and have an exit, then you should be a Delaware C Corp.