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That’s another question that my business specialists are often asked by our clients on a daily basis …..Our client has decided on a business structure and is ready to take the next step, but is now stuck on deciding which state to form the business in?
Should I incorporate my business in Delaware, Nevada, or my Home State?
Incorporating in Your Home State
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For a small corporation or LLC with less than 5 shareholders or members, it is often best to incorporate in the state where the business will have a physical presence. In other words, incorporate a business in the state where you will have an office (including a home-based business) sales people, and/or employees.
Simply Stated: Unless your business has a physical office in Delaware or Nevada, it's easier and less expensive to &bspn;incorporate or form an LLC in your home state.
More importantly, while Nevada may not charge your corporation state income taxes, the state in which your corporation is physically located will come after you for those taxes sooner or later.
Where a business incorporates “Out of State” (like Delaware or Nevada), that business may be responsible for additional filings and fees such as:
- Appointing a Registered Agent in that state
- Paying Filing Fees in that state
- Filing Annual Reports in that state
then, additionally, your corporation may be required to do the following:
- Appoint a Registered agent in THIS state
- Pay Filing Fees in THIS state
- Qualify as a Foreign Corporation in THIS state
- Pay taxes in THIS state
Incorporating in Delaware
Delaware is a very popular state for incorporating a business. Many larger corporations choose Delaware because it has the most developed and flexible corporate statutes in the country and is considered pro-business.
Incorporating in Nevada
Nevada has also become very popular for incorporating a business:
- No State Corporate Income Tax
- No Franchise Tax
- No Personal Income Tax
- Low Filing Fees
Remember, you can incorporate your business or form an LLC by yourself in ANY state without paying an attorney. There are filing fees involved, and there is still research to be done, but there are resources such as our website www.CorpNet.com that can help you every step of the way!
Visit http://www.corpnet.com/incorporate/how-to-incorporate/ to learn what you need to do to incorporate a business or form an LLC, and how we can assist you in filing the necessary paper work quickly and affordably saving you time and money. Of course, if you have specific legal questions or concerns, you should consult an attorney for sound advice.
These are the highlights. You can only base your decision on your own needs. And it's also a very good idea to establish a relationship with a reputable CPA, if you don't already have one.
WHAT ARE YOUR NEXT STEPS?
Incorporate, Form an LLC, or File a DBA (“doing business as”) with CorpNet.com. CorpNet will do all the paperwork needed to start your business online today starting at just $49 plus state fees.
- Conduct a FREE Business Name Search
- Get a FREE Price Quote with State Fees & Processing Time
- Learn more about incorporating or forming an LLC
- Speak to a LIVE Business Formation Expert at 1.888.449.2638
Start your Business, Today. Use DISCOUNT CODE: CNETNL-49D. We will match ANY competitor’s pricing!
I wish you the best of luck and may you be as passionate about your business as we are about our service!
My regards,
--Nellie
Nellie Akalp, CEO & Founder
CorpNet Incorporation Services
CorpNet (R) is a document filing service and CANNOT provide you with legal, tax, or financial advice.
Copyright 2008-2010 Corpnet, Incorporated. All rights reserved.
CorpNet (R) and CorpNet.com (R) are all Trademarks of CorpNet, Incorporated.
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