The complete guide to home state incorporation for smart founders. Learn why most successful companies start where they do business.
Why Home State Incorporation Makes Sense
For most startups, incorporating in your home state offers significant advantages over Delaware incorporation—especially in the early stages.
No double compliance, one set of filing fees, and often cheaper registered agent services.
One state to deal with, one set of rules to follow, one annual report to file.
If legal issues arise, you deal with local courts and familiar legal procedures.
Choose between LLC and corporation based on your specific needs, not Delaware's limitations.
You can always reincorporate later when your business needs actually require it.
Don't pay for Delaware benefits before you actually need them.
Common Delaware Incorporation Myths
Let's address the common misconceptions that push founders toward Delaware prematurely.
Reality: VCs invest in companies from all states. Reincorporation often happens as part of later funding rounds.
Reality: Customers and early investors don't care about your state of incorporation. They care about your product.
Reality: Delaware's advantages mainly benefit public companies and complex corporate transactions, not early-stage startups.
Reality: Reincorporation is a standard business process. Thousands of companies do it every year.
Delaware vs. Home State: A Framework
Use this framework to make the right choice for your specific situation.
Every dollar saved can be reinvested in growth
You're not sure if/when you'll raise institutional capital
LLCs offer better tax and operational flexibility early on
Service businesses, retail, restaurants, etc.
Early funding from people who know you personally
VCs have already committed and require Delaware
Serious plans to go public within 5 years
Building for rapid scale and multiple funding rounds
Extra $1,000-2,000/year isn't a concern
Multiple entities, complex ownership, M&A activity
When in doubt, start with home state incorporation. You can always reincorporate later when your path becomes clearer. It's better to save money early and reincorporate later than to pay Delaware costs for benefits you may never need.
Your Home State Incorporation Process
Here's how to get started with home state incorporation the right way.
Decide between LLC (more flexibility) and Corporation (easier for later investment). For most bootstrapped founders, LLC is the better starting choice.
Check name availability with your state, secure the domain, and consider trademark searches. Make sure your chosen name complies with your state's naming requirements.
Create your Articles of Incorporation/Organization and Operating Agreement/Bylaws. These documents should be tailored to your specific business needs and future plans.
File your formation documents with your state, get your registered agent set up, and apply for your Federal EIN for tax purposes.
Open business bank accounts, set up accounting systems, and handle any required business licenses for your industry and location.
Home State Incorporation Packages
We handle all the legal work so you can focus on building your business.
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
You're In Good Company
Many successful companies started in their home states and thrived.
Started in Vermont, stayed in Vermont, became a beloved global brand.
Founded in California, still California-based, billion-dollar outdoor brand.
Maine company since 1912, remains family-owned and Maine-incorporated.
Started in New York, reincorporated to Delaware only when they needed VC funding.
Illinois-based, never took VC funding, built a profitable software company.
Georgia-based, bootstrapped to $12B exit, never needed Delaware.
Started in California, reincorporated to Delaware before major funding rounds.
Founded in California, moved to Delaware as they scaled and went public.
Started in California, reincorporated to Delaware before going public in 2010.
Common Questions
Most states are perfectly fine for incorporation. We'll help you evaluate your state's specific requirements, fees, and benefits to make sure it's the right choice for your business.
You can do business in multiple states regardless of where you incorporate. You may need to register as a foreign entity in states where you have significant business activity, but this is true whether you're incorporated in Delaware or your home state.
Yes, most states allow LLC-to-corporation conversions. This can be especially useful if you start as an LLC for flexibility and later need to become a corporation for investment purposes.
Not at all. Many successful companies raise funding while incorporated in their home states. Reincorporation can be part of the funding process if needed, and it's often paid for by the incoming investors.
Incorporate in your home state, save money, and keep your options open. You can always reincorporate later when it makes business sense.