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North America Common Law 68+ treaties

Start your company California, USA

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Why California, USA?

Silicon Valley VC backed startups

California is home to roughly half of US venture capital deployment, with Sand Hill Road, Mission Bay, and SoMa anchoring the world's deepest startup ecosystem. Inc. under the California Corporations Code is comfortable for VCs that prefer in state companies, though Delaware C Corp remains the VC default. Strong fit if your team, customers, and investors are physically in California.

Silicon Valley VCInc. under CA Corp CodeLargest US tech market

Pacific Rim operating bases

California is the gateway to APAC, with the largest Asian American population in the US, deep trade infrastructure through LA/Long Beach ports, and direct air connectivity to Tokyo, Seoul, Singapore, and Hong Kong. The state is the world's 5th largest economy by GDP, and CIT applies to active business with California nexus regardless of state of incorporation.

5th largest world GDPAPAC gatewayLA / SF Bay tech hubs

Founders physically based in California

If you live in California, the state will tax your business regardless of where it is incorporated (under the franchise tax doing business standard). Forming directly in California simplifies compliance, eliminates Delaware franchise tax stacking, and provides clean access to LLC under the Beverly Killea Act or Inc. under the Corporations Code. The Secretary of State filing in Sacramento takes 5 to 7 business days standard.

CA Corporations CodeBeverly Killea LLC Act5 to 7 day filing

Considerations

If you want to minimise US state tax

California has one of the highest state tax burdens in the US: 8.84% CIT (10.84% for banks), $800/year minimum franchise tax even on $0 revenue LLCs, plus LLC gross receipts tax above $250K. For zero or low state tax US bases:

$800/year minimum franchise tax8.84% CITLLC gross receipts tax

If you want VC standard with lower compliance

VCs and acquirers default to Delaware C Corp under DGCL, with the most predictable corporate law and case law. California Inc. is less common in VC backed deal terms and may add diligence friction. For VC standard incorporation:

Not VC defaultHigher compliance load$800 franchise tax stacking
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