When to Register in Delaware
You may have heard that you need to register your company in Delaware.
Here’s when you should think about it…
1. The Advantage
Delaware has extremely favorable corporate laws.
That’s why it’s so popular with investors.
They like to fund Delaware companies because it reduces their legal risk.
Registering in Delaware is an advantage when you’re looking for funding.
2. The Disadvantage
It’s not as simple as only registering in Delaware.
You also have to register in the state where you run your business.
If you run your business in California, then you’ll register in California + Delaware.
You’ll pay registration fees + taxes in two states.
It takes time + money to do that.
3. When it Makes Sense
Typically, there’s only two reasons to register in Delaware:
1. You run your business there
2. You’re looking for funding
Otherwise, the time + money to register in Delaware probably isn’t worth it.