[gamblor956]

Generally, there's no good reason to incorporate in Delaware unless you plan (or need) to take advantage of its unique corporate laws for legal conflicts in which you have the ability to determine jurisdiction. Otherwise, you simply end up subjecting your startup to the laws of Delaware and whatever state the startup is located in.

(Tax-wise, you save little by incorporating in Delaware over a true corporate tax haven like Nevada, and you still owe state income taxes in whatever state the startup is actually located.)

[jwb119]

Maybe if you're a regular cash flow business. But if you're seeking VC money, you absolutely should be incorporating in DE or you risk running into the headache described in the article, IMO.

[gamblor956]

I agree, but that's only because VCs generally demand that the business be incorporated in Delaware.