Ask HN: Why do foriegn founders start Delaware based companies?

[sathishmanohar]

I've seen this mentioned a few times here in hacker news and among other blogs and forums as well. As I can see, People who want to run a US based company, but don't want to migrate to the US often do this. Where as people who want to migrate to US prefer Valley for obvious reasons.

What is the appeal Delaware has?

[MarlonPro]

Read this paper (pdf):

"Why Corporations Choose Delaware"

http://corp.delaware.gov/whycorporations_web.pdf

[tstegart]

Companies are founded in Delaware but the people running them don't actually live in Delaware. It provides a convenient set of rules and case law which companies rely on when making contracts and settling disputes. Delaware has a set of courts just for business disputes.

[stonemetal]

Even companies founded by people in the US are often founded in Delaware instead of where they live and work. They have some of the best(corporate friendly) laws in the US.

[aboyandhisdog]

Corporations are founded in Delaware because it has the most extensive and experienced court system for corporations, not because of low taxes as some think