Start a Company in Delaware

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Incorporate your startup in Delaware – the best way for investors

The State of Delaware is a prominent domicile for business entities in the U.S. and other international business entities. Delaware has gained popularity as a welcoming home to corporations.

Delaware is the best because it is the cheapest state for Incorporation. It is suitable for startups who are willing to expand by foreign qualification to other states; mainly to California, where Silicon Valley is located. If your Corporation or LLC is formed outside of California (i.e., Delaware, Wyoming, New York, etc.) but you are willing to do business in California, you will need to get Foreign Qualification in California.

Delaware is the best place for Tech Startups whose owners want to do business in Silicon Valley. Below are details of why you should incorporate in Delaware.

Why incorporate in Delaware?

  • Structuring Delaware Corporation is flexible – when you incorporate your company or business in Delaware, you will enjoy a great deal of flexibility that ensures that the structuring of the rights and duties of shareholders as well as board members are adequately catered for in the statute. Delaware allows that one person be the sole shareholder, director, and officer of a Delaware Corporation. This is usually not so in many other states as they expect that different people fill the officer and director positions. At least, a minimum of three people.
  • Highly Respected & Well-Established Delaware Court System – The Delaware’s Court of Chancery relies solely on the business law and make use of the services of judges instead of juries.Thus, if there are any issues with your business including litigation you can ask for the services of an experienced judge with expertise in complex corporate law. Many corporate attorneys are already conversant and up to speed with the Delaware business law, thus it will be no surprise if the company attorney you choose is already familiar with these laws.
  • Investors Prefer Investing In Delaware Corporations – It is common knowledge that Venture Capitalists (VCs) and Angel Investors (AIs) usually prefer to incorporate their businesses in Delaware because of the benefits they enjoy. So, consider investing in this state if you are looking to reach these investors. You will usually find them there.
  • Delaware Offers Some Tax Benefits – Delaware has very business-friendly tax laws that cover even businesses that are originally established in Delaware, but are no longer operating there. These businesses are not required to pay state corporate income tax. But, there definitely is a franchise tax. Additionally, people who own stock shares in Delaware are not obligated to pay taxes in Delaware. There exist no personal income tax for non-residents.
  • Delaware Offers Great Privacy – the state of Delaware does not demand that investors disclose the names of officers or directors on formation documents.This ensures that the privacy of the company and its directors are protected.

Let’s start your company

We recommend using our incorporation partner – Incparadise – to start your company in all 50 states. IncParadise is a registered agent in all the states in the USA and also offers its services in all the states. With IncParadise, you do not need any law degree to open a company and run it smoothly. All the steps are clearly explained. Plus, you can ask us any questions regarding how you will use their services at all times.


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