Is there any benefit to incorporate an app development agency as Delaware C-Corp instead of LLC in other states?

Delaware is a very popular choice for technology businesses. Also, most Fortune 500 top companies choose Delaware because of the well-established business law system.

This is also a very popular question on Quora, so a short response would be if you are raising VC capital or banks then C Corporation is very popular.

If your App Development agency is doing project based work and you are self-funding it & do not have any plans of raising capital from outside sources LLC with S Corporation may be a better choice.

Overall, before incorporating consult a CPA or a tax professional as this is a one-time expense and start-up expenses up to $5,000 can be deducted in the first year as incorporation expenses.

 

** Based on our response posted on quora.

 


Posted In: Company Formation

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