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There's a ton of reasons to incorporate in Delaware vs. other locations. It's not necessarily a safe haven. They have distinct courts set up for business-relat
by erichurkman 11y ago
There's a ton of reasons to incorporate in Delaware vs. other locations. It's not necessarily a safe haven.
They have distinct courts set up for business-related cases. In most states, if you file a lawsuit, you may not end up in front of a judge that specializes in business law and litigation, which may or may not work to your advantage. In Delaware, you will. Every corporate law firm also has experience with Delaware code (many have dedicated DE code experts). Law firms have standard document templates for Delaware. Every VC has experience investing in Delaware corporations. Courts are highly funded in Delaware relative to most other states, so cases can proceed more rapidly. Even the court clerks are dedicated to corporate law.
There is very little incentive for start-ups to incorporate elsewhere.
- piker 11y agoThis is true for most businesses as well. I would also add that Delaware's SoS has taken a very service-oriented approach to incorporation within the state. For example, you can generally form entities in Delaware as late as 9PM EST (imagine making a non-IRS federal filing past 5:00!). That's just how seriously Delaware takes it. Below it is suggested that Delaware is cheaper, in fact it can be much more expensive for this reason.