Is it better for a tech startup with the principal office in California to incorporate in California or Delaware? Why?

The answer to this question depends entirely on your preferences and the specifics of your business. To answer your question directly I would venture to state that if a CA or DE incorporation would be viewed as a detriment only if it adversely affected your startup’s ability to generate revenue or that incorporating in one state or the other exposed your company to unnecessary legal risk or excessive tax liability.

As for the fact that a startup is tech based there is nothing in either state’s corporate laws that would favor a tech company or conversely impact them. Ultimately the decision to a incorporate from the perspective of a tech company is much like that of any other company in that it is a question of finding the laws that are most favorable to your business. From a comparative perspective between California and Delaware that question can only be answered by an attorney with experience in structuring businesses in these jurisdictions. Yes, a majority of businesses incorporate in Delaware but that does not imply it is the right decision for you.

Feel free to visit LawTrades to speak with a vetted startup attorney for your incorporation needs. We make the incorporation experience “easy” by connecting you with experienced startup attorneys who will guide you through the critical business formation process. Upfront price quotes, end-to-end project management, and free consultations. Hope this helps!