Best 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.  

PBCs are suitable for AI startups. Unlike traditional corporations that are solely driven by maximizing shareholder profit, PBCs allow directors to consider the company’s public benefit alongside financial returns. This means AI companies can facilitate the attraction of necessary capital for advancing artificial intelligence while adhering to the foundational goal of benefiting humanity.

Delaware LLCs are known for their pass-through taxation, which means that the company itself does not pay federal income tax; instead, profits and losses are reported on the owner’s personal tax return. Delaware LLCs are is favored by solopreneurs because they can benefit from simplified tax filing and potentially lower overall tax liability, depending on their personal tax residency and income structure.

An LLC in Delaware also remains the gold standard for SPVs. It offers a highly flexible and well-established corporate framework and benefits from pass-through taxation, meaning the SPV itself is not taxed, and shareholders typically, but not always, pay taxes based on their own tax residency and applicable tax rates.

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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.

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California C-Corp is favored by tech startups and companies in the entertainment industry planning to raise venture capital, benefiting from proximity to major tech hubs and investors, despite higher state taxes.

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Wyoming LLC is a go-to jurisdiction for businesses holding high-value assets like real estate or intellectual property. The absence of state income, estate, or inheritance taxes allows to retain more capital for asset management or reinvestment. Additionally, Wyoming does not require public disclosure of members or managers while providing strong liability protections to shield personal assets of the owners from potential claims.

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, meaning shareholders and directors are not disclosed in public filings. With low maintenance costs and strong privacy protections, Wyoming C-Corp is an attractive choice for bootstrapped teams looking for a cost-effective and discreet incorporation option.

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.

As of March 2025, Panama has no specific crypto regulation. This makes it a popular jurisdiction for crypto companies looking to establish operating entities. Panama does not tax income derived from outside the country, meaning proceeds from token sales are generally not taxable.

Panama is also a go-to jurisdiction for game developers experimenting with web3 or crypto mechanics, such as the issuance of tokens.

BVI offers a zero tax rate, and the BVI crypto regulation does not impose licensing requirements for a project’s own single-time token issuance, making it a go-to jurisdiction for crypto projects. BVI is also a popular jurisdiction for SPVs and asset-holding structures, offering flexibility, privacy, and tax efficiency.

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The UAE Free Zone Company is suitable for businesses targeting the Middle East market, including crypto and space startups. While Skala offers IFZA Company registrations, these entities are not specifically designed for crypto-related activities.