• October 2019
    M T W T F S S
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Would the major companies/websites/apps of today achieve the same success had they not been started in the US?

In the United States, the success of a tech business is greatly influenced by how it is structured from the very beginning. When a startup it is in its infancy, it is crucial that it is incorporated in such away so it can be scaled properly. 64% of Fortune 500 companies, including some of the companies you mentioned, are incorporated in Delaware. Successful companies flock to Delaware because it is widely regarded as being very business friendly and because it is a well-known tax haven. In fact, all you really need to incorporate in Delaware is a business name, registered agent, and $89, plus there’s no need to identify owners or officers. Delaware also does not tax income earned from intangible assets such as trademarks (which might be important for a website or app); so many businesses park such assets in their Delaware corporations to reduce their tax obligations. In addition, Delaware has a Chancery Court which is exclusively dedicated to resolving business disputes. Check out my other thoughts on incorporating in Delaware here & here.

More recently, Nevada has become an attractive state in which to incorporate in the United States, especially because it is uses Delaware’s laws as its own model for developing its management-friendly corporate laws. (more on the advantages of incorporating in Nevada here.) Wyoming is considered to be a corporate friendly state as well, in particular because it does not levy corporate or personal income taxes. Having the advantage of such business-friendly laws, companies may flourish better in the United States than in other countries where the business laws are less friendly or where the business laws are less sophisticated.

If you are thinking about starting a company in the States, LawTrades has pre-vetted attorneys who have vast experience in helping people incorporate their small businesses and startups. Our services are cost-effective and specifically designed to help entrepreneurs. Contact us today for a free consultation and no-obligation price quote. Good luck!