Legal Questions: I'm not in Delaware. Can I incorporate here instead?
Updated 01 September 2022
Because they are by far the most popular entity among startup investors, we currently only back Delaware C-Corps. This decision was made for practical reasons.
When considering this topic, it is important to keep in mind the fundamental concept that the location where your company is incorporated does not necessarily correspond to the location where your company conducts its business. The goal should be to identify the regulatory environment that caters to the requirements of your company as well as those of your investors.
To put it another way, the overall benefits that come with incorporating in Delaware are extremely difficult for tech startups to compete with. In addition to potential business partners and acquirers for your startup, lawyers are well-versed in the Delaware General Corporation Law. This is one of the reasons why more than two-thirds of all Fortune 500 companies have registered in Delaware.
Most startups registered in Delaware are conducting business (and have their headquarters) in a different state, which means they’ll need a foreign agent qualification (FAQ). Learn how founders register their DE C Corps to do business as a foreign corporation in a different state.
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.