Understanding where to Register?
Delaware or Wyoming
Delaware
Incorporating in Delaware is the golden standard for startups looking to attract outside investment from angels and venture capitalists. A majority of Fortune 500 companies are incorporated in Delaware.
Wyoming
Wyoming tends to favor smaller and privately controlled companies. Low cost, manageability, flexibility, and a small business are features of Wyoming incorporation.
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Delaware or Wyoming Corporation: Understanding Where To Register
While a business can register in any American state, the majority of businesses both native and abroad choose to register in either the state of Wyoming or Delaware, depending on the company’s goals and priorities. Before choosing where to register, consider the size of your business, the type of your business, and your tax requirements. Generally speaking Delaware is better suited for most new corporations.
Delaware features:
- Delaware is the gold-standard for start-ups that seek venture funding and angel investors.
- Delaware is considered the most business friendly state in America due to a long history of established legal cases that provide business owners and corporate lawyers with a better certainty of how different types of disputes are most likely to be resolved.
- A majority of Fortune 500 companies are registered in Delaware.
- A yearly franchise fee (yearly state fee which you can pay online) is $175 or more, depending on the number of shares
Wyoming features:
- Wyoming is better suited for smaller, privately controlled companies.
- Wyoming companies typically benefit from lower costs and improved flexibility
- Wyoming does not collect any corporate tax information to be shared with the Internal Revenue Service.
- Wyoming has no franchise fee
- Wyoming corporations are allowed to have nominee shareholders