• February 2019
    M T W T F S S
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Is it a good idea to incorporate an Indian startup in Delaware or Estonia?

Hi there – I can only touch on Delaware. You’ll have a series of decisions to make if you’re serious about incorporating in the US. Here are some of them:

  • Which US state to incorporate in. Each state has its own procedures and rules. Make sure you choose the state that suits you and your business well.
  • Do you plan on working in the US? Although it’s easy for foreigners to incorporate, it’s really difficult for them to work at their own business. They must acquire a visa to do so.
  • Which business entity to go with. Forming an LLC is must different than incorporating as a C-corp. It’s important to understand the pros / cons of each.
  • Do you have an ITIN? That’ll be necessary.

If you’ve thought all those things over and decided on Delaware, you’re probably making the right decision. Here’s why:

  • Delaware has a long history of offering corporations a robust legal system that strongly favors business. For example, it has a Chancery Court that exclusively deals with corporate law – without requiring a jury.
  • Delaware’s corporate laws protect the privacy of director and shareholder identities, remove royalties and other intangible assets from taxation, endow officers and directors with considerable flexibility, and provide important advantages for minority stockholders (namely, cumulative voting).
  • Venture capitalists (VCs) prefer to work with companies incorporated in Delaware. If you plan to raise rounds of funding or aspire for an IPO then DE is the post to set up shop.

You should check out our site, LawTrades. We have helped hundreds of foreign entrepreneurs get legal help and get their companies off the ground in the US. We offer free initial consultations and quick & easy no obligation price quotes. Hope this helps!

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