My answer to As a non US resident where should I incorporate my e-commerce start-up?
Answer by Raad Ahmed:
It really depends on how you intend to grow your business and your strategies going forward. Delaware might offer you some advantages, but are those advantages worth the extra potential costs? Choosing a state of incorporation involves many factors, and the decision should be based on your specific business and its specific needs. You should consult with an attorney experienced in the area of business formation before making a decision.
Generally, businesses that register outside of their home state register in Delaware. This happens for a number of reasons. The state of Delaware welcomes new businesses and seems to have put forth quite an effort to facilitate them. If you are expecting rapid growth, Delaware may be the best choice. In addition to their state law being highly developed and favorable toward corporations, there tends to be a fairly universal knowledge of Delaware corporate law among lawyers across the country. At the same time, this is often because state corporate law – particularly the further west you go – is often patterned after Delaware corporate law.
Delaware does offer C-corps the greatest flexibility in terms of structuring boards of directors, stock issuance and preference, and voting rights. It also provides the broadest privacy protections. For instance, it doesn’t require director or officer names to be revealed on formation documents. For these reasons, many investors prefer companies that have been incorporated in Delaware as C-Corps.
You should understand what is best for your business and its specific needs and develop a tailored strategy with that in mind. For a free consultation with an experienced attorney to help you develop your strategy, visit. We offer no-obligation price quotes and a 100% money-back guarantee on legal projects.