Lots of talk lately about the Delaware incorporation dominance eroding...we just don't see it.
Effectively 9 out of 10 C-Corp startups that use Carta are incorporated in Delaware. That percentage has barely shifted in the last 5 years.
If a company chooses not to incorporate in Delaware, by far the next most common choice is "whichever state the business happens to be in".
Now this is simply a look at where the companies choose to incorporate at the start of their company lifecycle. It could be that more companies in the middle or late stages of their business are choosing to re-incorporate outside of DE (but I kinda doubt that too, seems like a major headache).
So why do all these startups choose DE?
Mostly because investor preference dictates they do so.
Friendly corporate tax rate, flexible corporate statutes, companies can headquarter outside of DE and not pay DE taxes, etc etc.
Most startup founders want to disrupt their industries, but innovating on incorporation is usually pretty low on the list.
#startups #founders #incorporation #delaware
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