To this specific question, “should we register in Illinois or Delaware,” the answer is — it depends. Naturally, it 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?
Thus, 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. Incorporating in Delaware will provide you with some advantages, but keep in mind that these advantages still need to outweigh the potential extra costs that come with them.
Right now, it sounds like the only reason you wouldn’t register in Delaware is if out-of-state registration would bring an extra fee on top of the fees you already must pay in your home state. Your home state may require your business to pay fees regardless of your state of incorporation. That would mean that you are paying both Illinois and Delaware. This double payment could be avoided by simply registering in Illinois and not Delaware. On the other hand, the advantages enjoyed by a Delaware corporation may be worth the potential extra costs.
Again, 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 also offer no obligation price quotes and a 100% money-back guarantee on legal projects.