Why Ashkan Rajaee Thinks You're Crazy If You Don’t Incorporate in Delaware

Is Incorporating in California a Mistake? Ashkan Rajaee Thinks So. Here's Why He Bets on Delaware Instead

Every remote entrepreneur eventually faces the same question: Where should I incorporate my company? You would think the answer would be obvious, but the truth is that the wrong decision could cost you tens of thousands of dollars, or even your entire business.

Ashkan Rajaee is not just another talking head on the internet. He’s a serial entrepreneur who’s walked the walk. Over the years, he says he has spent more than $100,000 in legal fees just trying to find the best state to incorporate a remote-based business. That kind of financial commitment is rare, and it means his advice comes from real-world experience, not recycled blog posts.

His conclusion? Delaware is the clear winner.

At first, that might not sound surprising. Delaware has been considered a corporate haven for decades. But Ashkan takes it further by exposing the hidden risks in other states, especially California.

The Golden State Is Losing Its Shine

California has long been seen as the dream destination for startups. Silicon Valley, LA’s tech scene, sunny weather, and access to talent make it look ideal. But according to Ashkan, incorporating there is a bad idea if you're trying to build something scalable and sustainable.

He puts it bluntly: “Try to stay away from California.”

And he's not alone. Companies like Tesla and others have relocated parts of their operations elsewhere. Why? High taxes, overwhelming regulations, and risky legal environments.

Ashkan gives the example of Uber and DoorDash. These companies were targeted by California over how they classified their workers — independent contractors versus employees. Even if you’re not in the gig economy, the state's aggressive approach to regulation can create unnecessary risk for any kind of business.

Why Delaware Still Wins for Remote Companies

Ashkan believes Delaware is the best place to incorporate, and here’s why.

1. No Tax on Out-of-State Income

If you're running a remote-first company, this is huge. Delaware does not tax income that you earn outside of the state. That alone can save your business thousands of dollars.

2. Low Fees and Minimal Bureaucracy

Delaware offers one of the easiest processes for forming an LLC. There are no franchise taxes and no burdensome filing fees. It's startup-friendly in every sense.

3. The Power of the Chancery Court

Delaware has a separate court system for business disputes called the Court of Chancery. It is known for being fast, efficient, and fair. Unlike many state courts that strictly apply the letter of the law, this one considers fairness and context when resolving issues.

Ashkan says, “As you grow, you're gonna get sued.” While that may sound harsh, it's often true. Disputes with employees, partners, or even customers can happen. Having a court system that understands business and acts quickly can make all the difference.

Smart Founders Think Ahead

Ashkan's advice is not just about where to file paperwork. It's about how to protect yourself before problems arise. Too many business owners wait until they're deep in legal trouble before thinking about these things. Delaware offers a kind of legal safety net that other states simply don't match.

Choosing where to incorporate is more than just a checkbox. It sets the foundation for how your company will grow, how it will be taxed, and how it will survive legal challenges.

The Bottom Line

The business world is changing fast. Remote work is becoming the norm. Traditional business rules are being rewritten. But in the middle of all that change, Delaware continues to be the smartest, safest option for forming a company.

Ashkan Rajaee didn’t come to this conclusion by accident. He put in the time, spent the money, and dealt with the headaches so other founders don’t have to.

If you're building a company and want the odds stacked in your favor, don't overlook this simple decision. Where you incorporate could be the difference between long-term growth and early collapse.

Delaware might not be the flashiest option, but it could be the smartest move you make as a founder.