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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[title size=2]Related Formation FAQs[/title]
- Can a Company Have Two Presidents?
- Can a Business Ban a Customer?
- Employer’s Guide to Responding to an Employee’s Unemployment Claim
- Is an Officer of a Corporation An Employee?
- Can a California Employer Ask Job Applicants to Disclose Criminal History?
- Multi-State Businesses: Which State’s Wage and Hour Laws Must be Followed?
- Thinking of Hiring an Influencer to Help Promote Your Business or its Products and Services? Here’s What Your Influencer Agreement Should Look Like:
- Thinking of Hiring a Freelancer? Tips to Protect Your Business When Using Freelancers
- Founders Agreements: A Comprehensive Guide
- Basics of Non-Disclosure Agreements
[title size=2]Other FAQs[/title]
- Formation FAQs
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- Investment & Fundraising FAQs
- Intellectual Property FAQs
- Corporate Governance FAQs
- Employees & Labor FAQs
- Licensing & Permits FAQs
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