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Ask HN: Is Delaware-C Still good, now that patent trolls might move there?
I'm seeing articles that talk about how Texas is becoming less popular.
I'm starting a business that will be fairly small for a while (less than $100k for a few years).
Should I bother doing a Delaware C-Corp, because if a patent troll sues me, I'd have to go to Delaware!
Otherwise, should I just start a regular Wisconsin business ( or C-Corp )
- mchannon 9y agoWhere you incorporate your business has never had much to do with the effects of patent trolls. Patent trolls would sue you in E.D.Tx if they were going to sue you, no matter where you were incorporated. A few recent court decisions may have changed that a bit, but the following has been true for years: If you're in Wisconsin, getting sued in either Delaware or Texas would pretty much stink an equal amount. Lots of travel, lots of legal costs. The funny thing is even though E.D.Tx has a reputation for patent troll heaven, the win percentage in a few other districts tends to be higher, and also resolution tends to be faster. If I was to sue on these two bases, I'd file suit in N.D.Tx (Dallas, Wichita Falls, or Abilene) or D.Nev (Las Vegas or Reno) and not Delaware or E.D.Tx. If you want to go public or be acquired, don't get cute- just get set up in Delaware, where everybody goes. That's what VC's expect to see. If you're going to simply do business in Wisconsin, incorporate in Wisconsin (where you can be your own registered agent, assuming you're going to stay there).
- danschumann 9y agoI'm not looking to raise right away, so is delaying incorporating at all a decent option? Until I get like 10k or 20k in sales... preferably in a few months. Stripe has an option for sole-proprietorship, is that a decent route for a little bit?
- mchannon 9y agoKnowing nearly nothing about your specifics (weigh that accordingly), I'd go for a single-member LLC, incorporated in Wisconsin. They're substantially more idiot-proof (as long as you stay single-member) than more conventional corporations.