Thinking of launching a startup and wondering where to incorporate? If you’re a founder looking to raise funds and grow fast, Delaware is likely on your radar. It’s not just about tradition — incorporating in Delaware offers real legal and tax advantages that support growth, funding, and long-term success. Whether you’re just forming your business or already using accounting services in the US, understanding why so many startups choose Delaware can help you make smarter decisions early on.
Here’s why so many startups choose to incorporate in Delaware—and why it might be the right move for your business too.
If you plan to raise capital from venture capitalists, angel investors, or startup accelerators, incorporating in Delaware is often expected—or even required.
Most VCs prefer it: Delaware corporations are familiar to investors, lawyers, and banks.
Faster deals: Due diligence is smoother when your business is registered in a state they trust.
Proven track record: About 80% of U.S. IPOs are Delaware corporations.
Delaware offers one of the most sophisticated legal environments for corporations in the US.
Delaware General Corporation Law is widely respected for its flexibility and clarity.
The Court of Chancery handles only business cases and has judges who specialize in corporate law.
Outcomes are more predictable and efficient, with no juries—just expert judges ruling on complex matters.
Want to keep a low profile? Delaware doesn’t require public disclosure of directors and officers in state filings.
This means greater privacy for founders and company leadership, which can be especially helpful during early stages or stealth operations.
Delaware offers meaningful tax benefits—especially if your company does business elsewhere.
No state income tax on corporations that don’t operate within Delaware.
No sales tax at the state level.
Franchise taxes do apply, but they can be manageable for small or early-stage startups.
Intangible assets like royalties are not taxed, which can be a major plus for IP-heavy companies.
When you incorporate in Delaware, you’re in good company.
Over two-thirds of Fortune 500 companies are Delaware corporations.
This creates an ecosystem that’s familiar to investors, attorneys, and financial institutions.
That familiarity can speed up legal work, funding, and banking.
Need to move fast? Delaware makes it simple.
You can often file and form a corporation in just a few hours.
This is ideal when you’re on a tight deadline for funding rounds or business deals.
Delaware gives startups room to structure their business in a way that fits their needs.
One person can hold all roles: director, officer, and shareholder.
No residency requirements for officers or directors.
You can customize your internal structure through bylaws and shareholder agreements.
From legal sophistication and investor preference to privacy and tax flexibility, there are many reasons why startups choose to incorporate in Delaware. It’s more than tradition—it’s about building your business in an environment that supports growth, funding, and operational ease.
If you’re launching a startup and aiming to scale, Delaware remains one of the smartest states to incorporate in.
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