⚡ Quick Verdict
Choose Delaware for VC-backed startups and large corporations (Court of Chancery, legal precedent). Choose Nevada for asset protection, privacy, and zero taxes.
4
✅ Delaware LLC Wins
0
🤝 Ties
6
✅ Nevada LLC Wins
📊 Full Feature Comparison
| Feature | Delaware LLC | Nevada LLC |
|---|---|---|
| Corporate Income Tax | 8.7% | ✅0% |
| Personal Income Tax | 0% – 6.6% | ✅0% |
| Franchise Tax | $300/year (LLC) | ✅$150/year (LLC) |
| Court System | ✅Court of Chancery (gold standard) | Standard state courts |
| Legal Precedent | ✅200+ years of corporate case law | Limited corporate case law |
| VC/Investor Preference | ✅Strongly preferred by VCs | Neutral |
| Privacy | Members listed in public records | ✅No public disclosure of members/managers |
| Asset Protection | Standard charging order protection | ✅Enhanced: reverse veil-piercing prohibited |
| LLC Filing Fee | $90 | ✅$75 |
| Fortune 500 Companies | ✅60%+ incorporated here | <5% incorporated here |
❓ Frequently Asked Questions
Should I form an LLC in Delaware or my home state?
If you only operate in one state, form there. If you incorporate in Delaware but operate elsewhere, you must register as a foreign entity in your operating state — paying fees in BOTH states. Delaware mainly benefits multi-state or VC-backed businesses.
Why is Delaware so popular for corporations?
Delaware's Court of Chancery is a specialized business court with expert judges (no juries), 200+ years of corporate case law, and extremely business-friendly statutes. This predictability is invaluable for complex corporate disputes and transactions.