Why Delaware is the Place to Incorporate Your Tech Startup
Give your startup the best chance of success
If you’re serious about giving your tech company the best chance of success, you may want to know why a Delaware C Corp gives you a solid foundation for your startup.
With so many states to choose from, it seems odd that one state stands out from the rest as the best choice to incorporate your company, but as you will see, there are very good reasons for this. You may wonder if it really matters. What’s the difference? A company is a company, right? Not quite.
What is Incorporation?
Why incorporate at all? Why not just operate under your name from your garage?
LegalZoom says that “the word “incorporated” means that a business has formed a corporation in one of the 50 states and is, therefore, a legal entity separate from its owners.”
A corporation is a legal entity separate from its owners. The owner’s assets cannot be touched even if the company goes broke, and many startups do go broke. You definitely need to separate your assets from the assets of your company! Be aware that you have to have separate personal and business bank accounts, as well as separate expense records, or else you will lose liability protection. See the LegalZoom article for more…
