Why do companies incorporate in Delaware?

There are two major reasons for Delaware’s dominance of the corporate incorporation business. The other major reason corporations choose to incorporate in Delaware is the quality of Delaware courts and judges. Delaware has a special court, the Court of Chancery, to rule on corporate law disputes without juries.

Are most startups C corps?

And yet, most startups incorporate as a C-Corp, the same structure used by Apple, Google and pretty much every large company in the United States. A C-Corp is a fully separate legal entity, responsible for paying corporate taxes and for issuing annual reports.

What is a Delaware flip?

Flipping your company to Delaware means changing your corporate structure to create a holding company in Delaware that owns your existing company. This is typically done when a company wants to raise from US investors, be it angels or VCs.

Which companies are incorporated in Delaware?

Why companies including GE, Apple, Coca-Cola and more are incorporated in Delaware. GOOGLE, Apple, Coca-Cola, GE. This dull building in the US is home to almost 300,000 of the world’s biggest companies.

How long does it take to incorporate a company in Delaware?

In short, the longest that it could take to form a Delaware LLC using our services is generally 3-5 business days. Many formations take less time.

How do I start a C Corp in Delaware?

How to Form a Corporation in Delaware

1. Choose a Corporate Name.
2. Prepare and File Certificate of Incorporation.
3. Appoint a Registered Agent.
4. Prepare Corporate Bylaws.
5. Appoint Directors and Hold Board Meeting.
6. Issue Stock.
7. File Annual Report and Pay Franchise Tax.
8. Obtain an EIN.

Should my startup be an LLC or C Corp?

Corporation vs LLC for Startups. The general consensus is that start-ups seeking venture capital should incorporate as C-Corporations, not LLCs. Interestingly, an LLC is a highly customizable entity through which a company could set up structures similar to a C-Corp.

How do you do a Delaware flip?

You will need to provide them with the details of your existing company and all its shareholders, including how many shares they hold. Then the lawyer will create the new company and begin the process of ‘flipping it’, which is done by a share exchange.