The decision to incorporate in Delaware or California, or in another state, is going to largely depend on your business operations and what goods/products or services you intend to sell.
A Delaware formation may be best for companies that intend to manufacture products that are shipped nationwide, companies that have actual ground operations (real estate leases) in several states, companies that want the company-favorable provisions of Delaware, or investor-backed startups that want to stick to the norms of what other startups in the industry look like.
If a company is primarily located in California, with overwhelmingly California clients, customers, and operations, with offices and business operations only in California, then incorporating in Delaware can simply add a layer of expense and complexity that often isn’t necessary.
There are many factors that play into where a company should incorporate. If you are thinking about incorporating in Delaware, for more information on which is right for your company, check out our longer article on this topic here: http://axislegalca.com/why-incorporate-in-delaware-startup-business/
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