Re:A Y Combinator Story - What's the interview like?
by zkinion on Thursday March 15, 2007 @03:41PM
(#4439)
Delaware has a long, clear history of case law, which is why many companies are incorporated there. Alot are also incorporated in Nevada (my home state). There it's like 200$ total. For a start-up, you normally don't need a whole lot of "lawyer juice" in the equation. The forms are very simple. You basically fill out the articles of incorporation document, then fill out a listing of officers/board members (initial listing of officers), which can be changed later. You also need to have a resident agent, which doesn't need to be a physical place, so long as lawsuit stuff can get there. Many places offer resident agencies as a service for as little as 99$. The deputy just needs to be able to deliver you some lawsuit/whatever. You send it all off to the secretary of state in whatever state you wish to incorporate, then in a few weeks later you get a copy of the forms back plus a certificate signed by the secretary of state saying that you're incorporated under that state. Normally all states have a website where you can look up information about a particular corporation. Every year you have to pay a few hundred bucks or so to rewnew the initial listing of officers. It gets a little more complex if you have investors and the company is initially shared between several people/other companies, but overall, its really that simple.
Delaware might charge more because of the simple fact that so many companies incorporate there. Finally, those "incorporate" services that charge a few grand basically give little advice and just fill the paper work out for you. They take advantage of the naive.
Delaware might charge more because of the simple fact that so many companies incorporate there. Finally, those "incorporate" services that charge a few grand basically give little advice and just fill the paper work out for you. They take advantage of the naive.