Where should I incorporate?
A corporation can incorporate in any of the 50 states, plus the
District of Columbia.
Many people choose to incorporate in their home state, which can save money in filing fees. That is because corporations are required to register in each state where they do business. For example, a Delaware corporation that has its main business office in Arkansas must register as a "foreign corporation" with the Arkansas Secretary of State and must pay applicable fees and taxes to both Delaware and Arkansas.
Delaware is popular because of its history, experience and pro-business climate. Nevada is also popular because of its pro-business environment and lack of a formal information-sharing agreement with the IRS. Please read the next two FAQs for more specifics on each state.