From what I read, the legal environment in your place of incorporation matters as much as, if not more than, the tax rate. So many companies incorporate in De

From what I read, the legal environment in your place of incorporation matters as much as, if not more than, the tax rate. So many companies incorporate in Delaware because it has extremely detailed corporate case law history (and separate courts for corporate law), even though it is more expensive to incorporate there than most other states. I would imagine for the average startup it's more an issue of overhead costs. Incorporating in Ireland, for instance, would require you to have a legal expert in Irish law on the payroll (most likely an Irish Lawyer) and deal with all the fancy tax forms I'm sure the IRS has for offshore companies doing business in the US. I highly doubt either of those places is a hostile legal climate by any means (but IANAL!), but it seems like all that paperwork would be distracting from your business when you are that small.