[gyardley]

He's assuming you're going to raise money.

VCs and their lawyers prefer Delaware incorporations because everything's business-friendly, there's well-established case law, and therefore things like financings are easier to do.

[travisp]

That's only part of what he says, and the rest doesn't seem really valid to me.

He said:

>1. Flexible Laws.

Yes, this is slightly more attractive for VCs. But I imagine, unless you are in an odd state, that VCs can handle corporations incorporated in, say, California.

>2. No Wildcard Juries.

If you're sued in Delaware, which you don't have to be.

>3. Precedence = Less Litigation.

Ditto.

>4. It’s Free! (Well, almost)

Foreign corporation registration may end up making it more expensive.

> A little bit cheaper than California ($100..but they nail you for $800 every year in franchise fees)

You don't get out of California franchise fees by incorporating somewhere else. See California's Franchise Tax Board document FTB 1063.

>5. Privacy

Since you may have to register as a foreign corporation, this anonymity in Delaware may be moot.

[freetard]

What if you live outside of the US?