Why incorporate in Delaware and not your home state?


What are the specific reasons to incorporate your company in Delaware instead of the state you reside in? Almost everyone states that Delaware is the primary choice for businesses.

What are some pros and cons of forming your startup there?

Incorporation Legal Delaware

asked Apr 11 '14 at 16:29
Austin Fermin
32 points
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1 Answer


The main reason is that Venture Capitalists prefer DE-based corporations when considering investments. DE business law and courts are setup in a very favorable way for corporations.

If you don't plan to seek investments soon, you are better off incorporating in your local state as there are many advantages - simpler paperwork and taxation rules, support from local community and associations, etc.

Please also see "Related" panel on the right for similar questions that will have more detailed answers.

answered Apr 11 '14 at 17:19
2,835 points

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Incorporation Legal Delaware