Everyone says "incorporate in Delaware," but is it right for your startup? Most bootstrapped founders save thousands by starting locally first.
The Real Cost of Delaware Incorporation
Delaware incorporation services only show you the upfront cost. But if you're doing business in another state, you'll face ongoing expenses they don't mention.
That's real money you can invest back into growing your business
When Delaware Actually Makes Sense
Delaware isn't wrong for everyone. But it's wrong for most early-stage, bootstrapped startups.
VCs often require Delaware for their standardized investment docs and processes.
Public companies benefit from Delaware's specialized Court of Chancery.
If you're targeting rapid scale and institutional funding rounds.
You can easily absorb the extra $1,000-2,000 annually in costs.
Every dollar saved is a dollar you can reinvest in growth.
LLCs offer more flexibility for early-stage businesses and tax planning.
Service businesses, restaurants, retail—Delaware offers no advantages.
You can always reincorporate later when your path becomes clearer.
Companies That Started Outside Delaware
Many successful companies started in their home states and reincorporated later when it made business sense.
Started in California, reincorporated in Delaware before IPO
Started in California, reincorporated in Delaware for public markets
Started in California, reincorporated in Delaware as it scaled
The pattern is clear: Start where it makes sense financially, reincorporate when it makes sense strategically.
Reincorporation is a standard business process. Law firms handle it regularly, and it's often paid for by investors as part of funding rounds.
Thousands of companies reincorporate every year
Usually paid for by incoming investors
Done when it actually provides value
Start Right, Scale Smart
We help you make the right choice for your situation—LLC or corporation, home state or Delaware.
The bare minimum legal foundation your startup needs to get started properly.
$750
A comprehensive legal foundation that covers your business as it starts to operate and grow.
$1200
Common Delaware Questions
Not at all. Customers and early investors don't care about your state of incorporation. Only later-stage VCs have Delaware preferences, and even then, many are flexible for the right deal.
Even in high-cost states, you're often still ahead when you factor in Delaware's double compliance costs. We'll help you calculate the real numbers for your specific situation.
Typically 2-4 weeks with the right legal team. It's often done as part of fundraising processes, so the timing works out naturally.
When done correctly, reincorporation can be structured as a tax-free reorganization. Your legal team will handle this as part of the process.
Don't pay Delaware costs for Delaware benefits you don't need yet. Start smart, save money, and keep your options open.