Jurisdiction GuideDelaware (US)
Delaware is the preferred incorporation state for US-facing tech companies and startups. No state corporate income tax, investor-friendly legal framework, and global brand credibility.
Why Delaware?
Over 65% of Fortune 500 companies are incorporated in Delaware. It's not primarily a tax haven, it's the gold standard for corporate governance, investor relations, and legal certainty.
Delaware has no corporate income tax for companies that don't conduct business in Delaware. Its Court of Chancery is the most respected corporate court in the US, providing fast, predictable resolutions to corporate disputes.
For IT startups seeking US VC funding, a Delaware C-Corp is effectively non-negotiable. Investors, accelerators, and US enterprise clients expect it.
C-Corp vs LLC
C-Corporation
- ✓ Required for US VC investment
- ✓ Preferred for startup equity structures (options, SAFEs, preferred shares)
- ✓ Required for IPO
- ⚠ Double taxation on dividends
- ⚠ More complex compliance
LLC
- ✓ Pass-through taxation (single layer)
- ✓ Simpler structure
- ✓ Flexible profit distribution
- ⚠ Not suitable for traditional VC
- ⚠ More complex for non-US owners
At a glance
Ocnite's role
- ✓ C-Corp or LLC incorporation
- ✓ EIN (tax ID) application
- ✓ Registered agent in Delaware
- ✓ Operating agreement / bylaws
- ✓ Annual report filing
- ✓ US compliance coordination
Get VC-ready with a Delaware structure
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