3 ms·

Out of curiosity: If you're in Silicon Valley, would you register your startup in Delaware or California?

by discardorama 12y ago

iaw 12y ago
Delaware, there are numerous advantages to incorporating in Delaware.
- ericd 12y ago
  Could you enumerate some of them for those who don't know? I'm aware of some of them, but it'd be nice to read.
  - forrestthewoods 12y ago
    Just google "delaware corporation". There are endless posts. It's not the only state which is popular to incorporate in, but it's easily the biggest. "Over 50% of publicly traded United States corporations and 60% of the Fortune 500 companies are incorporated in that state" http://en.wikipedia.org/wiki/Delaware_General_Corporation_Law http://en.wikipedia.org/wiki/Delaware_General_Corporation_La...
    - kolev 12y ago
      This doesn't mean it's good for all kinds of corporations though.
    - dragonwriter 12y ago
      > "Over 50% of publicly traded United States corporations and 60% of the Fortune 500 companies are incorporated in that state" Publicly traded corporations and Fortune 500 companies are particularly likely to have to operate in a large number of states and deal with multistate operations issues, so it makes a lot of sense for them to be incorporated in the most advantageous state before considering multistate operations issues, because choice of where to incorporate isn't going to have a meaningful impact on the issues they have from multistate operations. Smaller corporations, even ones that hope to later become publicly traded and/or Fortune 500 corporations, have different sets of concerns. The biggest criticism of the "always incorporate in Delaware" argument I've seen is that it is, for small corporations, usually a premature optimization. (Most of the arguments for DE incorporation seem to center around convenience for various exits and later, investor-demanded reorganizations.)
tim333 12y ago
https://news.ycombinator.com/item?id=244009 https://news.ycombinator.com/item?id=244009 'Ask PG/YC: Why a Delaware C-Corp?'
- raverbashing 12y ago
  Now, just one disclaimer, this is in the context of a company that's getting an investment from YC (Though the first comment gets it right) Just don't open one because you read about it on HN. Do your research first.

Out of curiosity: If you're in Silicon Valley, would you register your startup in Delaware or California?

iaw 12y ago

Delaware, there are numerous advantages to incorporating in Delaware.

ericd 12y ago
Could you enumerate some of them for those who don't know? I'm aware of some of them, but it'd be nice to read.
- forrestthewoods 12y ago
  Just google "delaware corporation". There are endless posts. It's not the only state which is popular to incorporate in, but it's easily the biggest. "Over 50% of publicly traded United States corporations and 60% of the Fortune 500 companies are incorporated in that state" http://en.wikipedia.org/wiki/Delaware_General_Corporation_Law http://en.wikipedia.org/wiki/Delaware_General_Corporation_La...
  - kolev 12y ago
    This doesn't mean it's good for all kinds of corporations though.
  - dragonwriter 12y ago
    > "Over 50% of publicly traded United States corporations and 60% of the Fortune 500 companies are incorporated in that state" Publicly traded corporations and Fortune 500 companies are particularly likely to have to operate in a large number of states and deal with multistate operations issues, so it makes a lot of sense for them to be incorporated in the most advantageous state before considering multistate operations issues, because choice of where to incorporate isn't going to have a meaningful impact on the issues they have from multistate operations. Smaller corporations, even ones that hope to later become publicly traded and/or Fortune 500 corporations, have different sets of concerns. The biggest criticism of the "always incorporate in Delaware" argument I've seen is that it is, for small corporations, usually a premature optimization. (Most of the arguments for DE incorporation seem to center around convenience for various exits and later, investor-demanded reorganizations.)

tim333 12y ago

https://news.ycombinator.com/item?id=244009 https://news.ycombinator.com/item?id=244009 'Ask PG/YC: Why a Delaware C-Corp?'

raverbashing 12y ago
Now, just one disclaimer, this is in the context of a company that's getting an investment from YC (Though the first comment gets it right) Just don't open one because you read about it on HN. Do your research first.