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Where
to Incorporate
Under
which state’s laws should a corporation be formed?
State laws governing corporations vary from state
to state. Many people sense that Delaware or Nevada
is a good choice, however, if the corporation will
have significant business or shareholder contacts
(a.k.a. "presence") within a state, there
is usually not much reason to incorporate outside
of that state.
For
example, forming a New York corporation for a business
centered in NY is usually the logical choice for the
following reasons:
-
Not
required to register as a “foreign corporation”
in home state. – additional fees.
-
No need to pay another person to serve as the registered
agent – additional fees.
-
No need to file multiple franchise state tax returns
– additional costs & taxes.
Reminder: Delaware
and Nevada are popular, but often not the best choice. |
