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You mind find the "startup mechanics" video from YC's startup school 2017 pretty interesting. The case is made that resolving disputes in Delaware (by being inc
by evbots 8y ago
You mind find the "startup mechanics" video from YC's startup school 2017 pretty interesting. The case is made that resolving disputes in Delaware (by being incorporated in Delaware) is greatly preferred to any other state (CA for example).
- misterbwong 8y agoIIRC it is generally preferable to incorporate in DE for dispute resolution but doing so does not exempt you from paying CA taxes & fees. You will still need to pay the minimum tax amount if you are doing business in CA.
- evbots 8y agoAgreed.
- exclusiv 8y agoYes this is correct. I have an LLC in Nevada and I still have to register an LLC in California because I live and work here. It's a foreign LLC entity.
- 77pt77 8y agoCould you expand on that? I really don't understand.
- jjeaff 8y agoIn this case, a foreign entity is an LLC that is registered in another state, but does enough business in CA to require registering in CA. In this case you register as a "foreign entity".
- jjeaff 8y agoIf you get to the point of having more than 50% of your employees outside of CA, I believe you can avoid registering as a foreign entity.
- DanielRibeiro 8y agoDirect link to the video: https://www.youtube.com/watch?v=2_IpVq6vKR0 https://www.youtube.com/watch?v=2_IpVq6vKR0 PS: It seems the original startup school video is gone. This version is linked by their page: https://www.startupschool.org/?course=1 https://www.startupschool.org/?course=1