A big idea in the field of artificial intelligence requires a global platform for implementation. When your product has the potential to change the market, ordinary solutions are not enough. You need a reliable legal foundation that opens access to international investments, partners, and clients.
This is exactly the request we received from the founders of an AI project seeking to enter the U.S. market. What they expected from us was professional support through the legal and bureaucratic maze in one of the world’s most prestigious jurisdictions.
Did we manage to find a way? You’ll find out soon!
Briefly About the Client’s Business, Which Requires Minimum Disclosure and Maximum Results
Unfortunately, we cannot tell you everything about this project. But fortunately – for you. Because if you become our client, your trade secrets will be protected just as securely.
That said, let us say a few words about the client – the founder of a next-generation tech startup. He and his team work at the intersection of creativity and complex artificial intelligence algorithms, developing their own software. Essentially, their business lies in transforming abstract code and data into commercially valuable products.
To enter the global – specifically, the American – market and attract investment, the client aimed to register his company in the tech hub state of Delaware. And that is how our paths crossed.
Delaware: Why Here and What Are the Challenges?
Any major project begins with one question: “Where?” A mistake in choosing jurisdiction can cost everything. Therefore, the first strategic session of the Lawrange team with the client was dedicated precisely to this issue.
With over 10 years of practice and hundreds of similar cases behind us, we did not suggest Delaware without reason. Among the key arguments “for” the state that the client heard were the following:
- For American venture funds and business angels, a “Delaware C-Corp” is a signal of reliability that requires no further explanation when raising capital. In other words, investors in 90% of cases deal specifically with Delaware companies, which means it will be easier both for them and for you.
- Unlike other states, Delaware has the Court of Chancery – a chancery court specializing exclusively in corporate law. No juries, only experienced judges. For business, this means predictability, speed, and competence in resolving corporate disputes.
- The state’s legislation is considered the most advanced and flexible. That is, a C-Corp owner is offered attractive opportunities to structure deals and protect directors from unfounded lawsuits.
However, we would not be ourselves if we did not also mention the downside. Delaware is not an offshore jurisdiction. We openly notified the client about the necessity of fulfilling the annual franchise tax and other tax obligations.
As a result, he agreed to register the company in Delaware. And this was a conscious choice made based on the expertise of our lawyers.
What Was the Technical Side of the Matter?
After approving the strategy, we moved on to its implementation. Our task was to take on all the complexity of the process, leaving only the key decisions to the client. That is exactly what we did:
- Prepared the founding documents, filled out registration forms, taking into account the specifics of the AI industry.
- Completed the company registration through the Delaware Division of Corporations.
- Submitted an application to the tax authority (IRS) and received the EIN (Employer Identification Number) quite quickly – without this number, it is impossible to open an account or hire employees.
- Chose an American bank with a good reputation and a supportive attitude toward startups with foreign founders, using AA Lawrange’s partnership connections.
- Successfully opened a corporate bank account.
The client was minimally involved in all processes. He only provided key information about the company at the beginning and signed the documentation. But was he aware of our actions? Of course, yes. We communicated every legal step and proceeded only with the client’s consent.
To Summarize: The Company Is 100% Ready to Conduct Business in the USA
As a result, the client secured a registered company in Delaware, ready for business activities in the U.S. market. Specifically, they also have:
- an issued and assigned EIN;
- opened corporate bank accounts;
- a package of internal documents regulating the company’s activities.
Most importantly, the startup founders were able to focus on what they do best: developing AI products. All the legal complexities remained within our area of responsibility (as agreed at the start of the partnership). Now the startup is successfully operating in the States, and more than that – scaling and developing!
Planning to take your business to the international arena? Contact a manager at AA Lawrange – we know how to provide your ambitions with a reliable legal foundation.
