What state should I incorporate in?

Almost all our startups are incorporated in Delaware. The standard for startups is to incorporate in Delaware for a few reasons:

  1. The corporate laws in DE are generally more company favorable.
  2. The case law in Delaware is much more developed and, therefore, if an issue comes up it is easier for the company to do an analysis of the potential outcome.
  3. Investors and VCs and their attorneys are more familiar and comfortable with DE corporations.  This is what the players in the startup sector are accustomed to seeing.   Familiarity is a great thing to make things much more efficient when an financing or acquisition is trying to close as soon as possible.
  4. To do an IPO, a corporation will almost always be reincorporated in DE due to the beneficial corporate laws.
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