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I agree about registering as a DBA, but not with the advice on the C-Corp. Unless you plan on taking VC money, the C-Corp is the worst business form you can choose, from a money/taxes point of view. The LLC provides all the same advantages of the C-Corp but avoids the nasty double-taxation nonsense. Furthermore, in California, the LLC tax rates are significantly lower than similar corporate rates.

Don't use LegalZoom. Using LegalZoom to incorporate your company is like using "See Spot Run" as the foundation for writing the next great American novel. There are lawyers out there who make lucrative careers fixing LegalZoom problems.

As for Delaware: don't register in Delaware unless you live in Delaware or enjoy out-of-state litigation. You're not a megacorp, you don't need the "protections" that the Delaware chancery courts provide. Delaware is friendly to management; not to business. A shareholder in Delaware's chancery courts has as much chance as a snowball in the fiery pits of Hell.

Registering as a Delaware corporation also means that you don't qualify as a domestic corporation in your state of residence. This means you lose out on any tax breaks, tax credits, or other incentives that your state offers to new/small businesses. Right now, most states offer these incentives.




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