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With the rise of artificial intelligence chatbots like ChatGPT and automation tools like n8n, everybody can build for themselves a successful SaaS business as the barrier to entry is lower than ever.
This business model is profitable and the SaaS industry is growing at an incredible rate. The SaaS market is expected to reach $10 trillion by 2030 (McKinsey).
If you are a foreign business owner thinking about opening your own SaaS company in the U.S, this guide is for you.
We share why the majority of international SaaS founders choose Delaware in the U.S as the best choice for SaaS startup and how you can register your company with our expert support for 100% success.
1. What is the SaaS business model?
A SaaS (Software-as-a-Service) company provides software to users over the Internet.
Instead of downloading and installing the software on their devices, users access it through a web browser.
SaaS companies usually charge a subscription fee, which can be monthly or yearly.
Because the software runs on cloud servers, users can access it from anywhere with an internet connection.
This makes SaaS more convenient than traditional software.
Businesses and consumers prefer SaaS because it reduces the need for hardware, simplifies updates, and allows for scalable usage.
For example, famous examples of SaaS companies include:
- Dropbox – A cloud storage platform where users can save and share files online;
- Slack – A communication tool for teams that enables messaging and collaboration;
- Shopify – An e-commerce platform that allows businesses to create and manage online stores;
- Zoom – A video conferencing tool widely used for remote meetings;
- Salesforce – A customer relationship management (CRM) platform that helps businesses manage sales, marketing, and customer support.
Nowadays, with the versatile capability of AI and amazing automation tools, more and more innovators can realize their ideas, implement them as easy-to-use software, and plan to sell them globally.
2. Why do many startups choose Delaware for SaaS company incorporation?
Starting a SaaS company involves more than just developing software, legal and business considerations are equally important.
Delaware is one of the most business-friendly states in the U.S. and is particularly popular among tech startups, including SaaS companies.
Many startups choose Delaware for incorporation because it offers legal and financial advantages, especially for companies planning to raise venture capital.
These immense benefits are:
Raising capital is a critical challenge for SaaS startups.
Due to intense competition, companies must continually invest in research and development, market expansion, and customer acquisition. One of the simplest and most effective ways to secure funding is through venture capital.
Investors, particularly venture capitalists (VCs), prefer Delaware-incorporated companies because of its well-established corporate laws and governance structures.
One major reason is stockholder voting rights. In states like California, mergers require approval from a majority of each stock class (common and preferred). However, in Delaware, only a majority of the voting stock is needed, which often gives investors more control in decision-making.
This makes Delaware more attractive to VCs because it reduces the risk of minority shareholders blocking company sales or mergers.
Additionally, Delaware’s well-developed legal system and specialized corporate court (Court of Chancery) provide legal clarity and predictability for businesses.
If a SaaS startup plans to go public, Delaware is also advantageous, as most publicly traded companies in the U.S. are incorporated there.
Some of the most well-known SaaS companies, such as Salesforce, HubSpot, and Zoom, were incorporated in Delaware, demonstrating its strong appeal for startups with long-term growth ambitions.
This means businesses can access a wider range of legal and financial service providers familiar with Delaware corporate law.
Managing finances efficiently is crucial for SaaS startups. Poor cash flow management can lead to operational challenges, limiting growth potential.
Delaware offers tax advantages that help optimize cash flow:
Delaware has favorable tax policies, including no sales tax and no state income tax on out-of-state revenue.
Low franchise tax – Delaware’s franchise tax is relatively low, making it cost-effective for startups compared to other states. You only need to pay attention to Franchise tax, and the Annual report obligation.
For many SaaS founders, choosing the right stat is important.
While other states offer different benefits, they lack in some of the factors such as taxation, investor appeal, and legal structure, making them unideal for SaaS startups aiming for growth and scalability
- California – A hub for tech startups but comes with higher costs, stricter regulations, and state income tax.
- Wyoming – Has fewer taxes and lower fees but lacks Delaware’s strong investor-friendly legal framework.
- Nevada – No state income tax, but not as widely recognized or preferred by venture capitalists compared to Delaware.
3. How to incorporate a SaaS company in Delaware?
Once you have decided that Delaware is the right choice for your SaaS startup, the next step is to go through the incorporation process.
Setting up your company properly ensures legal compliance, investor readiness, and smooth business operations.
Below are the key steps so you can formally open your SaaS company in Delaware.
Our business name reflects your brand identity and is a crucial asset. You can register it in different ways:
- Entity Name – Protects your company name at the state level;
- Trademark – Provides federal-level protection;
- Doing Business As (DBA) – Offers branding flexibility but no legal protection;
- Domain Name – Secures your online presence.
We suggest you have at least 3 different names to check with the Delaware database in case our first name choice is unavailable.
The most common business structures for SaaS startups are:
- LLC – Provides liability protection, simple management, and tax flexibility.
- C-Corp – Preferred for fundraising and IPOs due to its structured shareholding system.
If you plan to raise venture capital or go public, a C-Corp in Delaware is the best option. However, you can start with an LLC and convert it later if needed.
Once you’ve decided on your business structure and name, follow these steps to register your company:
| What to do | How can we help |
| Pick a registered agent | Global Link Asia Consulting will be your registered agent. Delaware Law requires every entity to appoint a Registered Agent with a physical office address in the State of Delaware. We help you work with the government, and ensure you comply with all regulations. |
| Check your company name on the state government website | We help you verify name availability on the state’s website |
Get a business address in Delaware Note: A P.O. Box cannot be used as your business address in most states. Having a physical or virtual business address with mail scanning services ensures smooth operations and successful bank account applications. | We offer a virtual address service to fulfill this requirement. You can rent an operating space in Delaware if you need. Our service includes a mail scan service at your business address so that you can receive all crucial mail from the government. Our services ensure you meet all legal requirements, and open a corporate bank account while still helping keep the incorporation fee at a reasonable price. |
| Prepare documents and file online | We help you prepare all necessary paper and file online with the Delaware government |
| Receive your company formation documents | Once your company is incorporated, you will receive your Articles of Incorporation in digital format. You can request to have a physical copy, however, it is expensive if you are living overseas (cost of packaging, mail forwarding, etc) |
| Draft your operating agreements | We help you prepare your by-laws to dictate how to run and manage your company. |
Prepare other important documents | We help you draft and issue other legal papers such as bank resolutions, exhibit with capital contributions, stock certificates, and more |
The Bank account opening process for US residents is easy to do. You can open with any bank you like.
However, the process is difficult with US non-residents. Requirements to open are:
- Bank resolutions with enough information about your companies and account holders;
- US ITIN and EIN (We help you get an EIN for your company_
- A physical meeting with the bank officer is to open.
Even with all the requirements met, your opening success chance is not guaranteed or even zero if your nationality is on the OFAX restrictions.
That said: There are digital banks or neo banks where you can open a US bank account without all the fuss of traditional banks.
Online banks offer a streamlined opening process with fewer requirements than typical US traditional banks.
You can open an account and start doing transactions right away.
What is a digital bank/neo bank?
Neobanks are fintech companies that offer banking and financial services entirely online through mobile apps or websites.
In other words, digital banks are a type of bank (licensed by the government) that does not have a physical branch but offers all the banking services you need.
To learn more about online banks, read our article here: A complete guide on digital banks
4. What to do after incorporating your Delaware company?
Once your company is ready to do business, there are a lot of things you need to get done.
We list out important tasks so you know what to do.
- Get a US phone number: You need it to do business, especially when you are a US non-resident, to open your bank account and your payment gateway. We can help you get a legal US phone number.
- Set up your company PayPal and Stripe account: We can help you open an account with an extra perk (A PayPal Business VIP) with little limitations, extra security, and features.
- Support to register DUNS Number for SaaS Businesses in Delaware.
- Trademark your company name, your products: We help you differentiate from your competitors on the market, making the unique selling points of your products stand out than ever.
- Do your bookkeeping: As soon as you start transacting, you'll need to manage bookkeeping for your sales, expenses, cash inflows, cash outflows, and more. Bookkeeping is required, if you seriously don't want to pay hefty fines, get your company audited with the risk of strike off,
The majority of business owners usually outsource to our tax and accounting experts to do it since we help you save time and resources, and offer quality work at a reasonable price.
- File taxes and comply with the Delaware state, IRS: We help you comply with the Annual Report obligations and calculate and pay your Franchise tax accordingly.
5. How can we help you start a SaaS company in Delaware the right way?
Setting up your SaaS company in Delaware the right way can position your business for long-term success, legal security, and investor readiness.
By following our guide above, you can avoid common pitfalls and optimize your operations for sustainable growth. To get started, here is our checklist for launching a SaaS business in Delaware:
- Choose the right business structure: LLC or C-Corp (Recommend to do first);
- Register your company name and secure your domain (Recommended to have at least 3 names);
- Find a reliable registered agent who can help you do everything from A-to-Z;
- Select Delaware as your incorporation state and file the necessary paperwork;
- Set up financial and legal infrastructure, including tax compliance;
- Develop your SaaS product and validate your business model;
- Plan your funding strategy and growth roadmap.
Want expert guidance to incorporate your SaaS company legally and efficiently?
We help founders like you open a U.S. company with a smooth, hassle-free process—so you can focus on scaling your business sustainably.
Reach out today to get started!
- Register a company in the U.S in your chosen state;
- Open a corporate bank account in the U.S with a 99% success rate;
- Choose the right company types for tax optimization in the U.S;
- Apply for US business licenses;
- Get an affordable, professional registered office address for business;
- Support to register DUNS Number for SaaS Businesses in Delaware
- Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
- Handle all your tax accounting needs, timely annual filings, auditing, and more.
6. FAQs about opening a SaaS company in Delaware
Yes, you can start a SaaS business without technical expertise.
The key to any sustainable business operations is the business owners' will to keep on learning so that they know what to do and how to do it.
It takes a lot of time and a tremendous amount of effort to run a successful SaaS business, especially if you are a non-US citizen managing your company overseas.
The biggest issue is founders skipping customer discovery/market research and validation. They jump straight into company formation.
For example, non-technical founders wait for the product to be built, and their company incorporated before they attempt to validate demand for the software in the U.S
If you are a foreigner, you can open a company in any US state. The 2 most popular choices are Delaware and Wyoming.
Delaware law requires every business to have a Registered Agent to receive legal documents on its behalf.
Many founders that Global Link Asia consulting supports to open a SaaS company in Delaware often close their company in the next 2-3 years:
The reason is that:
- They choose the wrong business structure for their long-term goals.
- They ignore tax compliance and legal requirements, leading to a shutdown, hefty fines, and a need to open a new company
- They overestimate the market need and the competition, jump straight to company formation and do not have enough customers to do a sustainable business model.
- They lack a clear investor appeal strategy if seeking funding, leading to a bottleneck in finance.
A registered address is a verified business address you can use without the need to rent or occupy that space physically. You can use this address to receive official government documents or to open a bank account.
You need to have a registered address in the state where you register your company.
With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries
Our areas of expertise include:
- Strategic Consulting and Company formation in over 10 different countries worldwide such as Singapore, Hong Kong, the U.S., Australia, Thailand, Malaysia, and offshore destinations like BVI, Belize, Seychelles, and more.
- Account opening for personal and corporate bank accounts, as well as setting up PayPal and Stripe gateqays in countries like Singapore, Hong Kong, and the U.S..
- Tax Consulting and Preparation for SFRS IFRS financial reports, corporate income tax returns, VAT/GST (Value Added Tax/Goods and Services Tax), and more.
- Opreation support:
- Registered adress;
- Foreign consular legalization;
- Trademark and patent protection registration in Singapore and the US;
- Employment Pass application in Singapore and Hong Kong;
- Website design, international SIM number provision;
- DUNS registration.
With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.
Global Link Asia Consulting Pte. Ltd. is pleased to announce the publication of the above insightful and informative article on our official website, Global Link Asia Consulting on 17th March 2025. The copyright for this article is exclusively held by Global Link Asia Consulting Pte. Ltd. Any unauthorized reproduction or distribution of this content without our express written permission is strictly prohibited. We value the protection of our intellectual property and appreciate your cooperation in adhering to these guidelines. Thank you for your continued support of Global Link Asia Consulting Pte. Ltd.
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