Ask HN: UK or Delaware incorporation

[drogo]

I need to decide whether to incorporate my startup in the UK or in the US. In either case the startup will be based in London and will have no physical presence in the US (at least for some time).

I'd like to understand if having a UK ltd. would exclude me from raising money from US angel investors, or anyway make it more difficult.

If so, would a (foreign) Delaware corporation be a better option? My worry is that a foreign Delaware corporation would be still be treated as (ahem...) foreign by angel investors and may make many of them reluctant to invest unless I relocate to the US.

Keep in mind that the Delaware company would only maintain a UK branch (as opposed to a subsidiary) in order to benefit from the very advantegeous SEIS and EIS tax-breaks for UK resident investors.

[drogo]

I already have one such investor, who would not mind investing in a UK one. I'm concerned about other potential angel investors.

[rajacombinator]

My 2c - don't bother with either until you have investors ready who will pay to set it up.