Is Delaware a good state to start a business?

Delaware is one of the most popular states where people setup their businesses for liability and asset protection purposes. It also provides ownership privacy, an efficient legal system for business disputes, and tax benefits for assets.

Why do companies incorporate in Delaware and carry on business in California?

Ultimately a California based company incorporating in Delaware is a matter of its founders wanting to signal the investment community that the company understands the preferences in the marketplace and is serious about attracting sophisticated third-party investors.

Does an online business need an LLC in every state?

As a California resident, you are free to register the LLC for your online business in any state. Startups and large corporations have traditionally preferred Delaware to register their LLC since Delaware law provides businesses greater flexibility in their corporate structure and stock options.

Can I do business in California with a Delaware LLC?

If you’re a Delaware LLC planning to do business in California, you’ll be considered domestic to Delaware and foreign to the state of California. The reason Delaware is such a popular domestic choice is because it allows you to leverage the corporate law structure.

Why are so many businesses based in Delaware?

The reason Delaware is such a popular domestic choice is because it allows you to leverage the corporate law structure. When your business has a physical presence in California due to its operations, employees, bank accounts, or assets, you’ll need to go through what’s known as foreign qualification in order for the business to operate there.

How much does it cost to incorporate a business in Delaware?

If you’re planning on incorporating in Delaware but are located in California, you’ll be required to have a Registered Agent. Plenty of companies exist for this very reason, and their fees may be as low as $100 per year.

Can I Register my Delaware LLC in Connecticut?

Nathan must now register his Delaware LLC as a Foreign LLC in Connecticut. He needs to file a Connecticut Foreign LLC registration, pay the state filing fee, which is $120 in Connecticut, it’s a lot more expensive in other states. Then he must keep this Foreign LLC in compliance with Connecticut law.