Comments on: Why Incorporate In Delaware?

By: Where should I incorporate? : The Nelson Law Chambers

Where should I incorporate? : The Nelson Law Chambers — Thu, 12 Jan 2012 15:24:58 +0000

[...] why you should incorporate in Delaware. Brad Feld, a venture capitalist of some renown, discusses why you should incorporate in Delaware on his [...]

By: Women 2.0 » Overview of Balance Sheet and Statement of Cash Flows (Part 2)

Women 2.0 » Overview of Balance Sheet and Statement of Cash Flows (Part 2) — Sun, 18 Sep 2011 16:58:58 +0000

[...] by the founders created two transactions. Since SayAhh is a C corporation that is incorporated in Delaware, they decided to have a very low non-zero par value for their shares, set at $0.00001, to prevent [...]

By: bfeld

bfeld — Mon, 04 Jan 2010 12:19:04 +0000

Actually, I was making fun of myself since I always spell it incorrectly.

By: Brad Feld

Brad Feld — Mon, 04 Jan 2010 12:19:04 +0000

Actually, I was making fun of myself since I always spell it incorrectly.

By: test

test — Mon, 04 Jan 2010 05:49:54 +0000

No I didn't think there was an "e". Thanks for condescending to your readers.

By: test

test — Mon, 04 Jan 2010 05:49:54 +0000

No I didn't think there was an “e”. Thanks for condescending to your readers.

By: William

William — Mon, 11 Jun 2007 04:06:40 +0000

For a guy just starting out…

I have developed a sense, through much research, that I should keep my business dealings outside of a corporation until I can show a profit of some kind. I was wondering, however, if there is some logic that I can gleem about the type of structures I should be considering.

1. We are looking at real estate investing
a. flipping
b. fix, keep, rent
2. We are looking at business buying
3. I am a web programmer who works a full-time job as well as takes private clients
4. My wife has a full-time corporate job who has private massage clients.

Should we have seperate entities for each aspect, or just one ‘umbrella’ entity?

Also, since we figure that creating the business entity is in the future, should we still investigate Family Trusts and other ‘family’ based entities to protect our personal belongings?

Any non-binding guidance would be appreciated. I fully understand that this would not be legal advice but only a ‘parlor room’ suggestion of ideas.

Thanks you,
William

By: James

James — Mon, 22 May 2006 04:17:36 +0000

In addition to the above, Delaware is usually much cheaper than CA in terms of annual filing fees. Also, depending on which entity you form, a Delaware entity does not require state-level K-1s to investors, so this can in turn reduce some accounting hassle and cost.

By: ak

ak — Mon, 22 May 2006 00:17:15 +0000

“Many investment bankers will demand that their clients are incorporated…”

I believe this sentence requires the subjunctive case viz:

“Many investment bankers will demand that their clients BE incorporated…”

By: Brad Feld

Brad Feld — Sun, 21 May 2006 07:30:45 +0000

Yes – most VCs will insist on the company being incorporated in Delaware – mostly for reasons listed above.