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Founded it as a California LLC but your potential VC wants a Delaware C-Corp? For a very small fee they can get your Delaware C corp registration, make sure that you have IP protection and ensure you didn’t make an early bumbling mistakes that you’ll pay for dearly in the next 7-10 years of hard work.
Whether you’re introducing the world to your new fashioned take on traditional cuisine or you’re building a skyscraping interactive museum, you should seriously consider starting up in Wilmington, Delaware. Wilmington, Delaware is conveniently located between two other major cities (Philadelphia and New York).
Don’t let naming issues stop you from incorporating and taking care of other legal housekeeping; a corporate name change is a simple matter that can be handled inexpensively, at least in business-friendly states like Delaware. AMR as holding company for American Airlines). There are no serious trademark conflicts with existing brands.
you want to form a Delaware corporation. Walker Corporate Law – boutique corporate law firm based in SF. doing this for 18+ years. different perspective as a lawyer (lots of phone calls from founders with problems). purpose of workshop: to discuss some of the significant problems/mistakes I’ve seen in the last six months.
Introduction SEW/corporate lawyer Walker Corporate Law – boutique corporate law firm based in SF doing this for 18+ years different perspective as a lawyer (lots of phone calls from founders with problems) purpose of workshop: to discuss some of the significant problems/mistakes I’ve seen Mistake #1: Forming the Wrong Entity you want to form a Delaware (..)
It used to be true that “everyone” incorporated in Delaware due to its more favorable terms, but many of these terms simply don’t apply to startups, or the differences don’t exist anymore. Tags: startup incorporation Arizona Delaware business. I live in Arizona, so I’ll use that state as an example. Now is the time to get started.
because they drive oversized returns – GLOBAL The rise of Chinese AI stars – you may have heard about DeepSeek AI but there are 6 other ‘Dragons’ – by me on VC Cafe The extended 2025 requests for startups list – with new updates from Y Combinator , ARK Investment Management LLC and others Why companies are leaving (..)
investors request that your company re-incorporate in the State of Delaware. through the “Delaware Flip” appeared first on Gust. While your conversations with U.S. based investors are productive, you soon realize that they are unwilling to invest in your Brazilian startup as it is governed by laws they are not familiar with.
Delaware is a very popular state to incorporate in, and boasts the highest number of incorporated entities in America. Because of its popularity, Delaware is also statistically a popular state for investors to finance businesses. This sounds great, but doing business in another state means additional paperwork.
For GreenPal, Gene Caballero says, “We knew that if we ever wanted to be looked at seriously by venture capitalists, we would need to be a C-Corp in Delaware.”. In fact, GreenPal wasn’t the only one that figured it was best to go for a Delaware-based C-Corp. presence via a Delaware-based C-Corp also gives non-U.S.
Since then it has grown to serve the tri-state New Jersey, Pennsylvania, and Delaware areas, but I still consider it a small business and my employees, more like a family. I started my Philadelphia area home appraising business in 2006.
You’ll find important lessons about clarity, culture and community from a software developer in Chicago, a janitorial service in Ohio, a telephone answering service in Delaware and a skylight manufacturer in Iowa as well as my take on living and breathing business ownership every day for over twenty-five years.
Currently this structure is available in Arkansas, California, Colorado, Delaware, Florida, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Washington D.C., Maryland was the first U.S. state to adopt this structure in 2010.
Secondly, if we are for example, launching our business venture in the United States, then we should think about where we should be incorporated, and there the best option is Delaware.
If you want to avoid a $500k bill (like that paid by one Connecticut startup) to later move your company to Delaware, incorporate in Delaware from day one. If your startup is in the United States, funders should be paid at least minimum wage because working for free is against U.S.
Startups also must pay an inexpensive service fee for incorporating in Delaware. Startups should incorporate as soon as they can; the expense is low. Lawyers can do it, but companies can do it themselves at websites such as Clerky or LegalZoom. If high U.S. However, the U.S. will collect taxes on sales in the U.S.
Any company incorporated in the State of Delaware, regardless of ownership, must file every year by March 1st, or receive an automatic penalty. Learn more about the Delaware Franchise Tax. The post Delaware Franchise Tax Explained appeared first on Gust.
Should I convert my LLC to a Delaware C-corp? The post Converting an LLC to Delaware C-corp appeared first on Gust. Maybe you formed your company in your home state initially for cost reasons or because it seemed like the simplest path to formation. These are […].
A fun fact – the Delaware company behind Credictive is actually called Rainbows and Unicorns Corp. I have so many friends who have worked on cool projects and were never mentioned anywhere. That it’s sad. If we are to move closer to “the Internet of people”, work and contribution have to be way more transparent.
Background Reading: When LLCs Make Sense for Startups Not Building a Unicorn If you have spent almost any time reading about the basics of startup legal issues, you know that Delaware C-corps are the default organizational structure for a “classic” tech startup (software, hardware) planning to raise angel/VC money and scale.
It’s Delaware Franchise Tax Season! If you’re incorporated in Delaware and you’re staring at a terrifying notice with the number $85,165.00 Your pre-revenue startup doesn’t owe $85,165 in Delaware Franchise Taxes appeared first on Gust. on it, don’t panic. It’s very likely that your startup only owes $400. The post Don’t Panic!
tax, R&D incentives, what not) to keep your company as a non-US entity, then you should consider a corporate flip i.e., create a new Delaware corporation that will own all the shares of your local company. If you are in the very early stages with your company and there are no major reasons (e.g.
If you are certain that you are building a large national corporation with more than 100 investors, and multiple classes of stock, then you might as well start with a Delaware or Nevada C-Corp. A few states, like Delaware and Nevada, offer tax advantages to large companies. I’ll offer you a few simple rules of thumb.
There’s a lot to learn about inspiring hope from American history, but before we look at that George Washington “crossing the Delaware” example, let’s examine what mindset means, and let’s see what is systematically left out (hint: it’s hope). So innovation leaders, how do you cross the Delaware?
If you haven’t already received your Delaware franchise tax statement in the mail, then it’s probably on the way. You have to give credit to Delaware — they make paying your corporation’s franchise taxes “thrilling.”
I grew up in New York City and for a few years heaven on earth for me was going to Boy Scout camp in the summer near the Delaware River. It’s time to teach Cyber Security as integral part of the high school and college curriculum and to all corporate employees. But for me the best part was the rifle range.
Delaware is considered one of the best states for starting a business because of the low corporate tax rate. Even immigrants who are not located in Delaware can still start a business. Non-residents do not need a Delaware business address and can apply for an Employer Identification Number.
Investors prefer investing in Delaware C Corps which don’t allow founders to take personal tax losses for early expenses. Many founders are tempted to make an S-Corp election which allows a pass-through tax treatment similar to an LLC.
A keen researcher, I looked up the best states to incorporate a company for startups— Nevada and Delaware were tops. I chose Delaware, signed up with Clerky and paid for my incorporation. In 3 days, my articles of incorporation as a Delaware C-Corp came by email. I looked at it, and felt a little different.
Wilmington, Delaware. Living in Wilmington, Delaware places residents conveniently in between Philadelphia and New York, making commutes to either of these major cities easy. In fact, Wilmington, Delaware might just be the most convenient city on the list in terms of location.
And enthusiastic craft beer aficionados, a rapidly-growing community in the United States and worldwide, have been quick to lap up these limited-edition, specialty beers.
We assume we’ll be structured as a traditional Delaware C corporation. The company has a long-term vision far beyond politics. As a VC, I’m interested in working with companies with large-scale revenue potential, and that’s the company we envision. Q: What is your political philosophy?
” I expect in the near term Delaware courts will be clogged with patent troll cases since so many tech companies and startups are incorporated in Delaware. Hopefully, the Delaware courts will take a much less “troll-friendly” approach to things. Of those, 90 percent are brought by patent trolls.”
We assume we’ll be structured as a traditional Delaware C corporation. The company has a long-term vision far beyond working with advocacy organizations. As a VC, I’m interested in working with companies with large-scale revenue potential, and that’s the company we envision. Q: What is the company’s political philosophy?
The District of Columbia, including Washington D.C., has everything you might need: low unemployment rate, well-educated people in the age range of 24 to 36, and reasonable rent and living costs. . District of Columbia. North Dakota. Massachusetts. Conclusion.
The Number of Employees You Have Matters. In most states, if you have just one employee you must carry workers’ compensation insurance. Most states provide an exception for household and domestic employees , such as Alabama, Arizona, Colorado (when part-time), D.C
We were told that we didn’t need to set up a C-Corp in Delaware even though they have the most tax-favorable state for this. Hiring inappropriate council constituted a $15k mistake because the incorrect company was formed–costing us time and $15k. If you plan to take your company public, make sure you form the correct corporation.
Luckily, and unlike most states, Delaware has a free online system for checking legal entity name availability. The post How to Check Availability and Reserve Your Startup’s Name in Delaware appeared first on Startup Lawyer. That system can be found here. For example, if you file a certificate of incorporation with a name that.
However, you need to learn everything you can about finding the perfect name for your startup; plus, make use of online resources like the Secretary of State Delaware business entity search to ensure you are not infringing on an already existing business name. Step 5: Choosing Your Business Structure.
For most startups, issuing between 60% and 80% of the total authorized shares of Common Stock is a good rule of thumb that balances founder ownership with flexibility to bring on additional contributors and minimizes Delaware franchise tax. The post Leave some room at the (cap) table, youre probably going to need it.
In the book, Calagione chronicles his struggles and challenges in setting up the first ever microbrewery in the state of Delaware, shares his intense passion for making the most interesting beers in the world, and at the same time gives his businessman’s perspectives on starting, running and growing a business.
We were told that we didn’t need to set up a C-Corp in Delaware even though they have the most tax-favorable state for this. Hiring inappropriate council constituted a $15k mistake because the incorrect company was formed–costing us time and $15k. If you plan to take your company public, make sure you form the correct corporation.
Having received a Bachelor of Science degree from the Delaware Valley College of Science and Agriculture in 1999, John has continually expanded his expertise across various industries. What methodologies do you employ to establish and sustain positive client relations?
2) State of Incorporation: Delaware. (3) Here’s what I’d do in the beginning: Incorporation. (1) 1) Entity Choice: Corporation or Corporation. (2) 3) Authorized Shares in Charter: 10,000,000 Shares. (4) 4) Type of Shares: Common Stock. (5) 5) Par Value of Common: $0.0001. (6) 6) Initial Founders Issuance: 8,000,000 Shares. (7)
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