When we speak about startups and innovation in the united states, one of the first places that come to mind is silicon valley in california. This region became famous as the birthplace of several unicorn companies that are worth billions of dollars today. Nevertheless, did you know that major tech companies like google and meta (facebook) operate in california but are actually registered in delaware? Why are delaware entities so attractive to tech companies? Yes, you read that right! Many of the companies and startups that proudly display their california addresses are actually incorporated in delaware. Now, we know you’d be asking yourself, “should i incorporate in california.
Well let’s take a look at
Why this is happening and what are the benefits of incorporating in delaware for tech and saas companies. Why major tech companies are headquartered in california but registered in delaware 4 reasons to incorporate your tech startup in Brunei Email List delaware 1. Taxes in delaware are lower than in california each state in the united states has a specific income tax rate. In california, for example, that value is 8.84% for both c corporations and llcs. On the east coast, by contrast, taxes are much lower. To be more specific, delaware does not have income tax when the company operates outside the state, which is more than attractive for companies whose source of income comes from the internet.
Delaware general corporation
Law another reason to choose delaware over california is the delaware general corporation law. The foundation of the state’s corporate law. Unlike other regions of the country, delaware’s legislation is not prescriptive and detailed. As it was Grils Book created to offer more autonomy in business control for corporations and their shareholders. This legislation is not intended to be a code of conduct that enriches the operation, but rather a legal framework that only lists some mandatory requirements to avoid future eventualities.