
Ask HN: Is Delaware-C Still good, now that patent trolls might move there? - danschumann
I&#x27;m seeing articles that talk about how Texas is becoming less popular.<p>I&#x27;m starting a business that will be fairly small for a while (less than $100k for a few years).<p>Should I bother doing a Delaware C-Corp, because if a patent troll sues me, I&#x27;d have to go to Delaware!<p>Otherwise, should I just start a regular Wisconsin business ( or C-Corp )
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mchannon
Where you incorporate your business has never had much to do with the effects
of patent trolls. Patent trolls would sue you in E.D.Tx if they were going to
sue you, no matter where you were incorporated. A few recent court decisions
may have changed that a bit, but the following has been true for years:

If you're in Wisconsin, getting sued in either Delaware or Texas would pretty
much stink an equal amount. Lots of travel, lots of legal costs.

The funny thing is even though E.D.Tx has a reputation for patent troll
heaven, the win percentage in a few other districts tends to be higher, and
also resolution tends to be faster.

If I was to sue on these two bases, I'd file suit in N.D.Tx (Dallas, Wichita
Falls, or Abilene) or D.Nev (Las Vegas or Reno) and not Delaware or E.D.Tx.

If you want to go public or be acquired, don't get cute- just get set up in
Delaware, where everybody goes. That's what VC's expect to see. If you're
going to simply do business in Wisconsin, incorporate in Wisconsin (where you
can be your own registered agent, assuming you're going to stay there).

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danschumann
I'm not looking to raise right away, so is delaying incorporating at all a
decent option? Until I get like 10k or 20k in sales... preferably in a few
months. Stripe has an option for sole-proprietorship, is that a decent route
for a little bit?

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mchannon
Knowing nearly nothing about your specifics (weigh that accordingly), I'd go
for a single-member LLC, incorporated in Wisconsin. They're substantially more
idiot-proof (as long as you stay single-member) than more conventional
corporations.

