What is the best place to incorporate for a startup SaaS company?

This is also a FAQ on quora. Usually, Delaware C Corporation is a popular choice for SAAS. Delaware is popular because of the well established legal system. Many top Fortune 500 companies were established in DE.

Secondly, eventhough you are registered in DE you may need to register again in the state where you are located as a foreign LLC. Foreign here refers not outside of US but refers to an LLC being incorporated again in the home state i.e where you are physically located.

From a tax perspective, you may not see major differences if you only incorporate in your home state vs homestate plus Delaware. There may be small annual compliance costs. As part of your analysis, always better to request your tax professional to provide you with estimated annual compliance costs

**Based on our response posted on quora.

Posted In: Company Formation

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