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Delaware C Corporation company formation

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An introduction to Delaware C-Corps

What is a Delaware C-Corp?

Clara legalOS

A C-Corp is a legal structure for a corporation in which the owners, or shareholders, are taxed separately from the corporation. Delaware. The ‘C’ in C-Corp refers to the rules and regulations of subchapter ‘C’ of the Internal Revenue Code, which a C-Corp is subject to. C-Corps are the most popular form of corporations for venture-backed startups setting up in the US. 

Benefits of a Delaware C-Corp

Speed of incorporation

Delaware C-Corps are one of the fastest company types to set-up. You can typically get your company formed in 1-2 days.

Flexible ownership structures

A Delaware C-Corp can be set up by persons or entities, whether they are based n the US or abroad. There are very few restrictions on the ownership structure you'd want to put in place.

Cost savings

Very cost-effective set-up. There are maintenance costs such as franchise tax, bookkeeping, annual tax filing and registered agent renewal, but overall Delaware is one of the cheaper jurisdictions to house your company.

Attractiveness for investment

If you're looking to raise funds from US investors or enter US accelerator programmes, the Delaware C-Corp is the company type of choice. It is widely known and accepted by investors. You should always seek legal and tax advice to understand any consequences of setting up in Delaware.

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