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As someone based outside the US (Canada), would it be advisable to incorporate in Delaware?

If not, how would I go about the income from my side projects?

Unless you plan on stepping foot in the US to do a lot of physical work, or plan on holding US real estate, use a Canadian corporation. I've been dealing with world-wide customers for ~10 years and have never incorporated in the US.

You should speak to an accountant before making any decisions, however.

I've been doing the same for a while. SaaS with most customers in the US, but the corporation is in Canada. The only hassle is that 10% of credit card charges fail because banks may block international transactions. So we have to tell clients to call their banks, etc. Not perfect, but better than dealing with cross-border taxes.

If you're just starting off you probably don't want to deal with the hassle of dealing with the US and Canadian government. Cross-border tax issues are expensive to deal with and complicated. Many Canadian businesses sell to the US without incorporating there.

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