Questions

I'm a Canadian citizen/resident and startup founder, my co-founder is an American citizen/resident living in San Francisco, we've got one employee who's also American living in Colorado. We expect a handful of American employees and handful of globally dispersed employees from outside the U.S. Does it make sense to incorporate in Delaware? Some possible advantages that are on our mind to not incorporating in Delaware: - As a Canadian, I can't visit the states while working for our company if it's a U.S. incorporated company - but I can visit up to 6 months if it's a non-U.S. company. - Lower Taxes - Simpler law / less bureaucracy Some possible disadvantages: - Harder to raise money - Harder to IPO - Harder to get an acquisition - Negative tax implications we're not aware of When you've got a physical office the "where to incorporate" question is straightforward, but when you've got a remote team of multiple nationalities it gets complicated and we're unsure how to weight these options. Does it make sense for a globally dispersed team to incorporate in Delaware?

I mainly do business in Latin America and have found quite advantageous to be in Incorporated in Delaware as a "C" corp. As long as you are able to do "transactions" via credit cards for services (gets trickier w/ merchandise) you should be OK, except with countries like Venezuela and Argentina where tight controls are imposed on the dollar.

Happy to jump on a call and share our experience.


Answered 9 years ago

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