Why do tech startups incorporate in Delaware?

Delaware incorporation is the gold standard for major corporations as well as startups looking to connect with angel investors and venture capitalists. But what does Delaware actually offer? Here are a few of the key benefits:

• Court of Chancery: Delaware's Court of Chancery leads the nation in business law and precedent. This makes it preferred by investors who prefer consistency and predictability.
• Tax benefits: Even if your business is incorporated in Delaware, you won't have to pay Delaware corporate tax unless the company actually operates there. There is also no state or local sales tax.
• Privacy: Delaware does not require corporations to disclose the names of officers or directors.

Incorporating a US business in a big decision, and it's important to fully understand the unique business landscape of each state. Click here for more information about the pros and cons of incorporating in Delaware.