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A lot of what Delaware buys you is a transparent, functioning, and predictable state legal framework and court system.



You're right. If you plan to build a business and raise VC money for it, Delaware is the standard place to incorporate (which is the case for my company and checklist, btw).

California does add an extra layer of burden and compliance that I did not expect, but if you plan to have employees in California you must incorporate there as a foreign entity (also my case).

I've also heard from a fellow entrepreneur who has a distributed workforce that you need to incorporate in every state with an employee. This is certainly outside the scope of my checklist.


If you plan to sell anything in Californa you must also register there as a foreign entity. And pay taxes.




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