Why pay for Delaware incorporation when you'll still need to register in your home state anyway? Save money and complexity by starting where you actually do business.
Clerky pushes Delaware. But is Delaware right for you?
Here's what Clerky doesn't tell you: if you incorporate in Delaware but do business in another state, you still have to register as a foreign entity in your home state. That means double the compliance, double the filing fees, and expensive Delaware registered agents.
Delaware corporation + foreign entity registration in your home state = twice the paperwork, twice the annual filings, twice the hassle.
Delaware registered agents cost $200-400+ annually. Your home state might be much cheaper, and you'll need an agent there anyway.
Delaware's benefits only matter if you're raising institutional capital or going public. Most startups never reach that stage.
Clerky vs. Smart Home State Incorporation
| Factor | Clerky (Delaware) | Forthlaw (Home State) |
|---|---|---|
| Annual Compliance | Delaware + Home State | Home State Only |
| Registered Agent | $300+/year (Delaware) + Home State Agent | Home State Agent Only |
| Formation Cost | $409 + $89 filing fee | $750 + local filing fee |
| State Income Tax | Delaware + Home State | Home State Only |
| Legal Expertise | Self-Service Platform | Real Attorneys + Consultation |
| Flexibility | Corporation Only | LLC or Corporation |
| Can Reincorporate Later? | N/A | Yes, Anytime |
Why our formation cost is higher: Clerky is a self-service platform that generates basic documents. Our packages include consultation with licensed attorneys, personalized legal guidance, and entity type recommendations based on your specific business needs.
Unlike Clerky's self-service platform, every Forthlaw package includes a consultation with a licensed attorney. We don't just generate documents—we provide legal guidance tailored to your specific business needs.
Let's be honest about this
Start Right, Scale Smart
Choose the package that fits your current stage. You can always upgrade later when you need Delaware.
The bare minimum legal foundation your startup needs to get started properly.
$750
A comprehensive legal foundation that covers your business as it starts to operate and grow.
$1200
Common questions about home state incorporation
Only if you're raising institutional capital. Most angel investors and early-stage funds are fine with home state incorporation. If you do raise a larger round later, reincorporation is a standard part of the process and usually paid for by the investors.
It's actually quite common and straightforward. Your lawyers (usually paid by investors) handle it as part of the funding process. Companies like Uber, Palantir, and many others started outside Delaware and reincorporated when it made sense.
Delaware's legal advantages really only matter in complex situations involving public companies, major M&A, or sophisticated investor disputes. For early-stage companies, these benefits are theoretical while the costs are very real.
For many bootstrapped founders, an LLC offers more flexibility with taxes, distributions, and ownership structures. Unlike Clerky, we help you choose between LLC and corporation based on your specific situation, not a one-size-fits-all approach.
Skip the Delaware trap. Start local, save money, and reincorporate later if you need to. It's what most successful bootstrapped founders actually do.