Clara can help you incorporate a Delaware C-Corp in a few simple clicks.
A Delaware C Corp is a popular type of US company for start-ups globally. C Corps offer limited liability protection to directors and shareholders, ring-fencing assets and liabilities. A Delaware C Corp can be used to operate in the US and act as a TopCo that owns subsidiary companies. Owners of a C Corp hold shares in the company, corresponding to a defined portion of the equity.
Here are some of the key features of a Delaware C-Corp:
Ownership: 100% foreign ownership is allowed, and multiple classes of stock are permitted. Stock and stock options can be granted to employees, advisors and investors.
Governance: A C Corp is a regulated management structure that is familiar to investors. Delaware has well-founded reputation for strong and impartial judiciary that are experienced in commercial disputes.
Fundraising: A C Corp is favoured by institutional investors.
Tax: Delaware is not a tax-free jurisdiction. C Corps taxes are assessed on profit. A C Corp may be able to use early losses in future years to reduce future taxable income when the company becomes profitable. A founder could be subject to federal tax on income, dividends, and capital gains if the company distributes dividends to them for example.
*Clara is not a legal or accounting firm and cannot provide tax advice. Please consult legal and tax professional for advice on how to meet your obligations in Delaware.