Top jurisdictions for startups
Delaware C-Corp is the preferred choice for venture-backed startups and solopreneurs across various industries, including SaaS, AI, Game Development, and Space, due to its well-established legal framework, investor familiarity, and flexibility in structuring equity and stock options.
Public Benefit Corporations (PBCs) are increasingly popular among AI startups. Unlike traditional corporations that focus solely on maximizing shareholder profit, PBCs allow directors to consider a broader public benefit alongside financial returns. This structure helps AI companies attract capital while staying aligned with their mission to serve humanity.
Delaware LLCs are known for their pass-through taxation. The company itself doesn’t pay federal income tax. Instead, profits and losses flow through to the owner’s personal tax return. This makes Delaware LLCs a popular choice for solopreneurs looking for simpler tax filing and potentially lower tax liability, depending on their residency and income structure.
Delaware is also the gold standard for Special Purpose Vehicles (SPVs). It offers a flexible, well-established legal framework and benefits from pass-through taxation. The SPV isn’t taxed directly, and investors typically pay taxes based on their own tax residency and applicable rates.
California LLC is suitable for local businesses and entrepreneurs operating within California, offering limited liability protection and a flexible management structure, though with higher state taxes and regulatory requirements.
While not the most common choice for US startups, California C-Corps are popular among tech and entertainment companies looking to raise venture capital. They benefit from proximity to major tech hubs and investors, though founders should be mindful of higher state taxes.
Wyoming LLCs are a popular choice for businesses holding high-value assets like real estate or intellectual property. With no state income, estate, or inheritance taxes, more capital can be retained for reinvestment or asset management. Wyoming also offers strong liability protection and does not require public disclosure of members or managers.
Wyoming DAO LLCs are typically used for for-profit activities with decentralized decision-making enabled by smart contracts. Members benefit from limited liability protection, shielding their personal assets from the organization's debts and obligations.
Wyoming stands out for its anonymous ownership — shareholders and directors are not disclosed in public filings. With low maintenance costs and strong privacy protections, a Wyoming C-Corp is an attractive option for bootstrapped teams seeking a cost-effective and discreet way to incorporate.
Recently, Texas has gained traction as a corporate-friendly state. It offers slightly lower state-level taxes and, more importantly, a more predictable judiciary and corporate regulatory framework. With the recent shift in case law regarding the treatment of major shareholders in Delaware, along with endorsements from public figures like Elon Musk, Texas has emerged as a more appealing state for AI and space startups.
Recently, Texas has gained traction as a corporate-friendly state. It offers slightly lower state-level taxes and, more importantly, a more predictable judiciary and corporate regulatory framework. With the recent shift in case law regarding the treatment of major shareholders in Delaware, along with endorsements from public figures like Elon Musk, Texas has emerged as a more appealing state for AI and space startups.
Recently, Nevada has gained traction as a corporate-friendly state. It offers slightly lower state-level taxes and, more importantly, a more predictable judiciary and corporate regulatory framework. With the recent shift in case law regarding the treatment of major shareholders in Delaware, along with endorsements from public figures like Elon Musk, Nevada has emerged as a more appealing state for AI and space startups.
Recently, Nevada has gained traction as a corporate-friendly state. It offers slightly lower state-level taxes and, more importantly, a more predictable judiciary and corporate regulatory framework. With the recent shift in case law regarding the treatment of major shareholders in Delaware, along with endorsements from public figures like Elon Musk, Nevada has emerged as a more appealing state for AI and space startups.
Panama is a popular choice for crypto startups and developers experimenting with web3 or crypto mechanics. As of March 2025, Panama has no specific crypto regulation, which provides flexibility for early-stage projects.
Additionally, Panama does not tax income earned outside the country, so proceeds from token sales are generally not subject to local taxes.
The British Virgin Islands (BVI) offers a zero tax rate and does not require a license for one-time token issuances, making it a go-to jurisdiction for crypto projects.
BVI is also widely used for Special Purpose Vehicles (SPVs) and asset-holding structures, thanks to its flexibility, strong privacy protections, and tax efficiency.
A UAE Free Zone Company is a strong choice for businesses targeting the Middle East. It’s especially popular with crypto startups, thanks to low corporate and personal taxes.
The UAE is also supportive of space ventures. If your space startup has ties to the region or plans to raise capital from local investors, setting up a legal entity in the UAE can be a smart move.