Incorporate a Business in Delaware

Delaware is the default choice for many venture-backed startups, thanks to its established business courts and investor familiarity. Here's what to know before you file.

Why Delaware built its reputation

Delaware's Court of Chancery specializes in business disputes and has decades of well-documented case law, which gives investors, courts, and attorneys a high degree of predictability that's harder to find in less-tested states.

The tradeoff for businesses without investor plans

If you're not raising venture capital and don't operate in Delaware, incorporating there generally means also registering as a 'foreign entity' in your home state, plus a Delaware registered agent — effectively paying two sets of fees.

Delaware's franchise tax

Delaware charges an annual franchise tax that can be calculated a few different ways depending on your corporate structure, and it's separate from any franchise tax owed in your home state if you're registered there too.

What to look for in a Delaware formation service

Look for a service (or attorney) with specific experience in Delaware C-Corp formation for startups, including cap table setup and standard investor-ready documents if raising capital is the goal.