Why do startups incorporate in Delaware?

Startups incorporate in Delaware because its Court of Chancery provides a specialized business court with judges (not juries) who understand corporate law.

This creates predictable legal outcomes that investors trust. Delaware's General Corporation Law is the most developed in the country, with over 200 years of case precedent covering nearly every corporate governance scenario. Venture capital firms prefer Delaware C-Corps because the legal framework supports preferred stock, anti-dilution provisions, and protective provisions that standard VC term sheets require. Additionally, Delaware allows a single person to serve as sole director, officer, and shareholder, making it practical for solo founders. The state does not require you to live or operate there. Lovie helps founders set up their Delaware entity and registered agent without needing to visit the state.