Legal Questions: Can you incorporate me in a state besides Delaware?
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.
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!
If you cannot find the answer to your question, you can always contact us.