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Is Delaware the cheapest place to incorporate?

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Re: Is Delaware the cheapest place to incorporate?

#91

Post by EFreethought »

KieranMac wrote: post #41
blovescoffee wrote: post #39

Earlier quoted context omitted.

Why is the correct answer a DE C Corp if you're looking to raise?

It's just industry standard for capital raises. All corporate attorneys learn DE law when they go to law school and are expected to know it if they practice corporate law. A Colorado attorney doesn't know California law and a California attorney doesn't know New York law, but if they do corporate legal work, they're all expected to know how to deal with DE law. Nobody knows Nevada or Wyoming law. I don't even think W…

Every time I read "court of chancery", for a second I think it says "court of chicanery".

Re: Is Delaware the cheapest place to incorporate?

#92

Post by dividendpayee »

Mystery-Machine wrote: post #90
throwaheyy wrote: post #82

Earlier quoted context omitted.

I assume ”non-resident” in this context means not a permanent resident, but still a SSN-holding resident otherwise. For example a TN or H1-B visa. These visas don’t authorize you to work for a company other than the one officially sponsoring the visa, but you are allowed to own your own business. Perhaps that is the motivation for wanting to open an LLC, but I’m not sure what an LLC gets you in this situation that si…

You're wrong. Non-resident alien means the person is at-best a tourist. Most likely the person is outside of the US and _maybe_ visits occasionally.

No, you are totally wrong. You should not comment on things that you have no understanding of. A non-resident alien is any person in the US who is not a citizen, green card holder, or passes the substantial presence test. There are millions of non-resident aliens on visas in the US.

Re: Is Delaware the cheapest place to incorporate?

#93

Post by throwawayapples »

blovescoffee wrote: post #39
KieranMac wrote: post #38

I'm an attorney. Delaware is definitely not the cheapest or even in contention for the cheapest. Still, if you want to raise capital, the correct answer is DE C Corp. If you're not looking for external funding, any state will do. If you care about anonymity, do Nevada or Wyoming. If you don't care about anonymity, Colorado is actually a very good choice. Very simple, intuitive online filing system that accepts filing…

Why is the correct answer a DE C Corp if you're looking to raise?

The Court of Chancery nearly always rules with the board (VCs) over shareholders (founders). VCs like that.

Re: Is Delaware the cheapest place to incorporate?

#94

Post by louison11 »

ddxv wrote: post #14
Digory wrote: post #13

You may want to start a Delaware C-Corp if others are investing money. That is the standard. But it is far from the cheapest way to "start a company" in the United States. Usually, it is easiest to start a "limited liability company." Smaller states compete for the lowest LLC cost. For example, Arizona, Mississippi and Missouri all charge $50 for an LLC, with no recurring fees. Kentucky charges $40, but requires a $1…

Thanks for the advise. As for your question, I'm an American citizen and generally get advise to not directly create a Taiwan company as the tax and banking system are incredibly bureaucratic. Having painfully started a subsidiary here in the past, though not an actual TW corp, makes me suspect the advise I hear is worth listening to.

A follow up question I have is why create a company if you think you’re gonna have no to little revenue? Why not just wait until you actually make money to register? Adding a business entity before having any cash flow will probably only make your life more complicated.

Re: Is Delaware the cheapest place to incorporate?

#96

Post by codexb »

blovescoffee wrote: post #39
KieranMac wrote: post #38

I'm an attorney. Delaware is definitely not the cheapest or even in contention for the cheapest. Still, if you want to raise capital, the correct answer is DE C Corp. If you're not looking for external funding, any state will do. If you care about anonymity, do Nevada or Wyoming. If you don't care about anonymity, Colorado is actually a very good choice. Very simple, intuitive online filing system that accepts filing…

Why is the correct answer a DE C Corp if you're looking to raise?

There are limitations on the number of owners and the amounts and type of stock you can issue as other types of corporations. Delaware doesn't require you to disclose all owners and investors and they have a court of chancery that is business friendly.

Re: Is Delaware the cheapest place to incorporate?

#97

Post by zeusk »

dividendpayee wrote: post #92
Mystery-Machine wrote: post #90

Earlier quoted context omitted.

You're wrong. Non-resident alien means the person is at-best a tourist. Most likely the person is outside of the US and _maybe_ visits occasionally.

No, you are totally wrong. You should not comment on things that you have no understanding of. A non-resident alien is any person in the US who is not a citizen, green card holder, or passes the substantial presence test. There are millions of non-resident aliens on visas in the US.

Substantial presence test is applied by IRS only for tax residency. You can be on h1-b for 5 years, pass the SPT and classify as tax resident but still be non-resident alien in the eyes of DHS/USCIS/SSA.

Re: Is Delaware the cheapest place to incorporate?

#98

Post by flopriore »

jawns wrote: post #60
blovescoffee wrote: post #39

Earlier quoted context omitted.

Why is the correct answer a DE C Corp if you're looking to raise?

I'm a longtime Delawarean and in my past life as a journalist I wrote about why the state is such a corporate haven. The short answer is that companies incorporate in Delaware to mitigate risk. The slightly longer answer is that the Delaware courts that deal with corporate legal matters are much more predictable than comparable states. There is voluminous settled case law, and so when you incorporate in Delaware, it…

Could you share the article you wrote about why Delaware is a corporate haven?
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