Should I register my startup in Delaware?

Should I register my startup in Delaware?

If you’re based in another country or state, you might be wondering if there’s a reason to register your company as a Delaware corporation instead of just creating a simple LLC where you live. The short answer, especially if you’re planning to grow your company and secure outside funding, is “Yes.”

Why startups register in Delaware?

The primary reason that the tech startups I work with incorporate in Delaware is finance. Venture capital firms typically require companies to be structured as a Delaware corporation as a condition of funding the company. There are scenarios where a Delaware corporation is not the ideal entity type for a startup.

What type of corporation should a startup be?

A C-Corporation is the best choice for startups; other structures come with challenges that most investors prefer not to face.

Can a foreigner register a company in Delaware?

You do not have to live in, or even visit, the state of Delaware in order to form a Delaware company. Other than residents of restricted countries (Cuba, Iran, North Korea and Syria), anyone can form a Delaware company and operate lawful business activities from anywhere in the world.

Can I register my LLC in Delaware?

Forming an LLC in Delaware Is easy. To form an LLC in Delaware you will need to file a Certificate of Formation with the Delaware Department of State, which costs $90. You can apply by mail or in person. The Certificate of Formation is the legal document that officially creates your Delaware limited liability company.

Where are startups incorporated?

Delaware
Startup States The most popular states for incorporation are Delaware, Nevada, and Wyoming. Notably, around 66\% of all Fortune 500 company are incorporated in Delaware. This is largely due to that Delaware has a highly developed corporate law – particularly landmark court decisions – on major corporate matters.

Can you register a business in Delaware?

The State of Delaware has a One-Stop Business Registration and Licensing System where you can register your business with the Division of Revenue, the Division of Unemployment Insurance, and the Office of Workers Compensation.

How do I register a business in Delaware?

Select a registered agent. The agent must be an individual or business with a physical street address in Delaware. Her job is to accept legal papers on your behalf. The state of Delaware has a list of Delaware Registered Agents on their website. Reserve your name. You must choose a unique name that is not in use by any other Delaware business.

Why should I incorporate my startup in Delaware?

Incorporating in Delaware is a popular choice for early stage, accelerated growth tech startups, particularly in the post-bubble era.

Why choose a BVI company for Your Startup?

On-going corporate governance requirements of BVI companies are well suited to startups with only minimal filing requirements. This means founders can spend more time focusing on product development and launch and less on corporate filings, whilst also keeping on-going fees to a minimum.

Is a BVI company’s Register of directors available to the public?

Although a BVI company must maintain a register of directors and a register of members, these registers are not available for public inspection, ensuring confidentiality for founders and investors.