Delaware LLC & C-Corp Formation

Delaware is the corporate home for the majority of Fortune 500 companies and over 90% of US IPOs. Investors are deeply familiar with Delaware charters and financing documents, which reduces friction when you raise. Combined with the specialized Court of Chancery and a century of predictable case law, it has become the default for venture-backed startups, many funds require it before investing.

It depends on entity type and how it is calculated. Delaware LLCs pay a flat $300 per year (due June 1). Corporations pay a $50 annual report fee plus franchise tax by March 1, calculated by one of two methods. The default Authorized Shares Method can produce a bill of tens of thousands for a typical startup, while the Assumed Par Value Capital Method usually reduces it to a few hundred dollars. We file the method that legally minimizes your tax.

Most startups authorize around 10 million shares at formation. Delaware's default franchise-tax calculation (the Authorized Shares Method) can bill that at roughly $85,000. Switching to the Assumed Par Value Capital Method almost always drops it to a few hundred dollars. Many founders panic when they see the first default bill, we simply file the correct method for you.

If you plan to raise venture capital or issue employee equity, a C-corp is the standard, and it is required for QSBS tax benefits. If you are bootstrapped and distribute profits, a C-corp's double taxation and formalities may be unnecessary overhead, an LLC or your home state could serve you better. We will recommend the structure that fits your actual plans.

Choose Delaware if you are raising institutional capital, its investor familiarity and Court of Chancery are worth the higher cost. Choose Wyoming if you want privacy, strong asset protection, and low fees without needing outside investors. Many founders raising a priced round go Delaware; investors and holding companies often prefer Wyoming. We can walk you through both.

Usually yes. If your company operates or has a physical presence in another state, you must register there as a foreign entity and follow its tax rules, in addition to Delaware. This dual-state compliance is normal for Delaware companies; we handle both sides so nothing is missed.

An 83(b) election lets founders pay tax on their shares at grant, when the value is low, rather than as they vest. It must be filed with the IRS within 30 days of the grant, missing that window can cause a large tax bill later. We guide founders through 83(b) filings as part of setup.

Yes. International founders regularly form Delaware C-corps for the credibility and investor familiarity a US entity provides. We obtain your EIN, arrange a registered agent, and handle the federal filings so you can operate and raise from anywhere.