Today, we’re talking about which entity you should use when starting your company. I always recommend a Delaware C Corp, even if you’re currently outside the US.
1. Delaware C Corp Is the Industry Standard
If you’re planning to fundraise from startup investors, a Delaware C Corp is the best choice. It’s what most investors expect, and it’s easy to set up using services like Stripe Atlas. By choosing this structure from the start, you’ll be best positioned to attract investors and grow your sales.
2. International Works
Even if you’re outside the US, I still recommend starting with a Delaware C Corp and then using a local law firm to create a subsidiary in your home country. Again, this makes it a lot easier to both fundraise and sell in the USA.
3. It’s Worth The Cost
Although this approach will certainly cost more in the short term, it’s almost always worth it. This structure opens up new fundraising opportunities and saves you the significant monetary and time costs associated with “flipping” to a Delaware entity later on.
Best of luck out there.
Sterling Road invests in idea stage and pre-seed B2B startups based in the US, Canada and UK.
