Should I incorporate in Delaware or Nevada?

Delaware unless you have a specific privacy or no-state-tax reason. Nevada's reputation for aggressive tax minimisation can raise concerns with sophisticated investors.

Is Nevada tax-free for foreign founders?

Nevada has no state corporate income tax, but charges annual business licence fees ($200-$500+). Foreign founders pay US federal tax (21%) regardless of state.

Does Nevada offer real privacy?

Yes — Nevada doesn't require public disclosure of officers/directors. But this is rarely the determining factor for genuine business activity.

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State comparison

Delaware vs Nevada

Delaware vs Nevada — second-most-asked comparison for foreign founders. Nevada markets itself on no state tax and privacy; Delaware wins on VC familiarity and case law.

Side-by-side

Detailed comparison.

All the criteria that matter to foreign founders choosing a US state for incorporation.

Criterion	Delaware	Nevada
State corporate tax	8.7% (only on Delaware-source)	0% — no state corporate tax
Personal income tax	0% on out-of-state	0%
Annual franchise tax / business licence	$400 min	$500 + business licence fees
Privacy	Director names public	Strong — no public disclosure
Court system	Court of Chancery (best in US)	Standard
VC familiarity	Highest	Low
Reputation	Best-in-class corporate law	Sometimes flagged as 'aggressive tax haven'
Best for	VC-backed, traditional startups	Privacy-focused, single-owner businesses

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