Do you know which state to incorporate your business?

Where to incorporate

This can be a confusing one for many investors. Where to incorporate is an important decision  because the state of incorporation will be the company’s legal home. In most states you are not required keep an within the state; a company can operate business in another state. The most common choices of states to incorporate are: state of operation, Delaware or Nevada.

The State Where You Operate 

This is the least costly and least complicated choice. Plus, if you ever have the misfortune to get sued, local laws would govern.  So your entity should have a legal standing in the state where you intend to operate your business.

Delaware

Many start-up companies are attracted to incorporating in Delaware because of: low incorporation fees, low taxes and management flexibility.

Nevada

Nevada is on the top of the list for incorporating  because of its favorable corporate laws such as: low taxes, low fees and corporate privacy laws. But, like Delaware it is larger corporations who have the most to gain from incorporating in Nevada.  Similar to Delaware, smaller corporations may find more disadvantages than benefits to incorporating in Nevada.

Learn More about Entity Structure on this webinar