Tax & Compliance
Delaware Franchise Tax
Collated by Aparna Devalla, CPA
Curated by Rubric Financial
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Why Most Startups Incorporate in Delaware
- Delaware's Court of Chancery specializes in business law, providing a well-established and predictable legal framework for corporate disputes.
- Most VC term sheets and institutional investors require Delaware C-Corp incorporation as a standard condition for investment.
- Delaware law offers flexible governance provisions, including the ability to have staggered boards, different share classes, and broad indemnification protections.
- The Delaware General Corporation Law (DGCL) is regularly updated to address modern corporate needs and is well understood by startup attorneys.
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