Delaware Incorporation Practices

Discussions center on why companies, including startups and non-US entities, incorporate in Delaware for tax benefits, mature case law, and investor preferences despite operating elsewhere, with debates on enforcement, foreign qualification, and offshore alternatives.

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e.g US HQ DE LLC WA GDP DAO YC BVI delaware tax incorporated incorporate incorporating corp corporation company business states

Sample Comments

doodliego Oct 1, 2018 View on HN

Aren't most corporations incorporated in Delaware for tax reasons anyway?

bob_theslob646 Dec 4, 2017 View on HN

He is bs'ing you. Companies don't incorporate in United States they are incorporating tax havens across the world ( everywhere but the United States)

slt2021 Aug 14, 2025 View on HN

Curious how this can be enforced if business is incorporated in another state like WI/DE ? or offshore like Ireland ??

pyb Oct 13, 2022 View on HN

Even if the company is incorporated in Delaware ?

thephyber Dec 7, 2024 View on HN

It’s not about moving your HQ to Delaware or Wyoming. It’s about adopting the corporate law of the state of incorporation. When a company incorporates in a state like Delaware, they usually have minimal physical presence (eg. a PO Box / mail forwarding service, a firm that supplies a minimal skeleton board and does minimal corporate rituals).

jeffwass Sep 10, 2017 View on HN

Many American companies (including most or all YC startups) do the same, incorporating in the low-tax state of Delaware for favourable tax treatment even though the company's offices and bulk of revenue-generation are elsewhere.

eddsh1994 Mar 10, 2023 View on HN

Does that work even if the companies incorporated in Delaware?

patrickaljord Dec 1, 2011 View on HN

I live in Peru but created my corporation in the US in Delaware just to get the gateways and other US services.

mhd Sep 30, 2011 View on HN

You don't have to be a resident to incorporate, although (as always) the laws often are quite arcane. If I remember correctly, taxation differs massively depending on whether your European company owns the US corporation/LLC or whether individual persons do.You have to register with a state, and Delaware seems to be the preferred one, as they're basically a tax haven. The Liechtenstein of the US…

swampthing Mar 12, 2013 View on HN

Definitely! You'll have to look into any potential tax consequences and any paperwork you need to do for the country you're in, but there is nothing on the Delaware side that would prohibit you from incorporating. Let us know if you have any questions!