Starting an AI company in the U.S.?
Delaware is the #1 choice in 2025 for founders looking to attract investors, protect their IP, and simplify taxes. This guide walks you through every step to get your business up and running in the First State.
IRC and Legal Reference
Delaware companies are treated as U.S. entities under IRC §7701(a). A C-Corp is taxed under IRC §11, while LLCs can elect corporate tax status via Form 8832 or S-Corp status via Form 2553 under IRC §1361.
IRS and State Forms You’ll Need
- Form SS-4 – To get your EIN
- Form 8832 – LLC to C-Corp election
- Form 2553 – S-Corp election (if eligible)
- Delaware Certificate of Incorporation
- Delaware Annual Report & Franchise Tax
Example: Real Startup Case
Example:
A startup called VisionStack AI was incorporated as a Delaware C-Corp by two Indian founders in New York. With a clean corporate structure, they raised seed funding from U.S. angels and issued equity to developers. Delaware’s predictable legal system gave early investors the confidence to commit capital-helping VisionStack scale quickly.
Step-by-Step: How to Register Your AI Startup
- Choose the Right Structure
C-Corp for VC funding. LLC for solo founders or consultants. - Hire a Registered Agent in Delaware
You must maintain one to receive official documents. - File Certificate of Incorporation
Include your company name, number of shares, and agent info. - Apply for an EIN (Form SS-4)
Needed for banking, payroll, and tax filings. - Open a U.S. Business Bank Account
Choose from top banks or startup-friendly online platforms. - Make IRS Tax Elections
File Form 8832 or Form 2553 as per your tax goals. - File Annual Reports and Pay Franchise Tax
Due to the Delaware Secretary of State by March 1 every year.
Conclusion
Delaware makes launching an AI company simple, secure, and scalable. Its legal and tax systems are designed for startups. If you’re serious about building and funding your AI business in the U.S., Delaware is the place to start.
Call to Action
Need expert help starting your Delaware company?
Book a 1-on-1 call with Anshul Goyal, CPA, EA, FCA to set up your business legally and efficiently.
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Disclaimer
This blog is for general educational purposes. For personal legal or tax advice, please consult a licensed professional.
Anshul Goyal is a U.S. Certified Public Accountant (CPA), IRS-authorized Enrolled Agent (EA), and Chartered Accountant (FCA) in India. He helps founders and tech startups with U.S. company formation, taxes, and compliance.
Top 5 FAQs – Incorporating in Delaware
1. Do I need a U.S. address to start a Delaware company?
No. A registered agent is enough to file in Delaware.
2. What’s the best structure for AI startups?
Most go with a C-Corp to raise outside funding.
3. Can I convert my LLC to a C-Corp later?
Yes. You can file Form 8832 to change your tax classification.
4. How long does Delaware incorporation take?
Usually 1-3 business days after filing.
5. Is it expensive to keep a Delaware company active?
Annual Franchise Tax starts at $175, plus a small filing fee.
About Our CPA
Anshul Goyal, CPA, EA, FCA is a cross-border tax expert based in the U.S. He represents clients before the IRS and assists AI founders from India and globally to launch and maintain IRS-compliant businesses in America.