Many people choose to incorporate in their home state. However, if your home state
has a high corporate income tax or high state fee, and your corporation will not
"do business" in the home state, it may be wise to incorporate elsewhere.
"Doing business" means more than just selling products or making passive
investments in that state. It usually requires occupying an office or otherwise
having an active business presence.
Delaware is a popular choice for incorporating because of its history, experience,
recognition and pro-business climate. Also, Delaware does not tax out-of-state income.
In fact, over half of the companies listed on the New York Stock Exchange are incorporated
in Delaware.
Recently, Nevada has also gained popularity due to its pro-business environment
and lack of a formal information-sharing agreement with the IRS. Nevada does not
have corporate income taxes. Business filings in Delaware and Nevada can typically
be performed more quickly than in other states.
Wyoming has also started to gain popularity after passing strong pro-business laws.
It also lacks state income tax, and formal information sharing with the IRS.
Keep in mind, if you do incorporate somewhere other than your home state, you may
have to pay additional fees and meet additional requirements. You may want to speak
with an accountant or tax advisor before making a decision.
To learn more and speak with a representative, please call us at (888) 381-8758.
We are happy to answer any questions you may have.
