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Legal Questions: Can you incorporate me in a state besides Delaware?


Nancy Thanki

Updated 01 September 2022

Unfortunately, we do not facilitate incorporation in any other state; however, there are a few very good reasons for this:

  • Delaware is a wise choice of jurisdiction if you're looking to raise outside capital for your business. Due to tax considerations, most investors prefer to invest in Delaware C Corps.

  • It is simpler (and less expensive) to obtain legal counsel because the majority of startup lawyers are familiar with Delaware law. Furthermore, potential business partners and acquirers for your startup are well-versed in it.

  • When properly calculated, the Delaware Franchise Tax is one of the lowest tax rates in the US. Even if a company authorizes a significant number of shares, such as 10 million shares or more, the annual franchise tax typically only amounts to a few hundred dollars.

  • Delaware provides significant legal and financial benefits to businesses, including a separate corporate court system that efficiently resolves legal disputes.

  • If you register somewhere else, you might later need to re-register, which can be expensive.

  • Delaware is home to 70% of Fortune 500 companies. Startups and big businesses alike favor Delaware as their preferred jurisdiction.

Learn why most startups file their incorporation paperwork in Delaware.

Learn more about our features, check out our FAQs, and see our blog for more information.

Get in touch to learn more about Capbase or schedule a call to setup your brand new Delaware C Corp on Capbase! Do you already have a company incorporated elsewhere? Not a problem, send us a bit more info and we'll chat more about your specific needs!

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