I've enjoyed reading this series of comments and will add my personal two cents. I get approached almost on a daily basis by individuals and companies wanting to join our pool of searchers. I've been burned badly in a previous "life" by working with a company that was ultimately outsourced for all their work. i have nothing against outsourcing if it is handled properly and securely, but too many companies are not.

 The point I'm seeing  here is that the entire focus was turned to only the fact that the company incorporated in DE. That is merely a tiny flag. All the other issues were flags and they added up to a whoa nelly! 

The company that employs me is SOC I and SOC II certified and we must apply these same type certification requirements on any vendor we use. If the prospective vendor fails any of these requirements, then we don't do business, even if their pricing is the lowest in the world. Pricing is not the be all and end all of a relationship. It helps, yes, it is competitive, yes. But that is not the definitive answer. If they cannot show they are a valid entity doing business according the the US Laws for whatever state they claim they are doing business in, we don't use them.

So, my bottom line is, you have to build you own comfort zone before you do business with any company and what that comfort zone might be is a individual all each of us are. If you are performing a full due diligence and pay attention to anything that raises, waves or salutes a red flag for you, don't go forward. It is YOUR business after all.

Toni S.

Any opinion expressed here is my own and not that of my company.