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For your typical technology startup
Silicon Valley-type company, the best advice is a Delaware C corporation.
The whole startup ecosystem has grown up around Delaware corporations,
and that for the entrepreneur -- for the startup entrepreneur -- that offers
two advantages.
One is trust. You walk into
an investor meeting and you're asked where your
company is incorporated, If you answer Delaware, immediately there's a sense of
trust that's generated because the investors know Delaware.
The other advantage is cost, again because
the whole ecosystem has grown up around Delaware corporations.
The standard forms are based on Delaware. When you're working with other law
firms or with
investors, everyone's on the same page. Everyone's using the same forms and
there can be a real cost advantage to using
Delaware as opposed to another state.