Does it really matter where you
incorporate your business? Absolutely! You have heard the real estate term “Location, location, location,” and to some extent the same applies to
incorporating your business. Different states have different laws that affect corporations – some, like Delaware and Nevada – have well established reputations for being pro-business. Depending on your situation it pays to do your homework when it comes to determining the best place to incorporate.
Here are the major choices to consider when selecting where to
incorporate your business:
Local
The majority of small business owners simply incorporate in the state where they are physically located. It’s quick, convenient and may work fine for those small companies that conduct business in one state.
Delaware
Delaware is pro-business and well known as the state of choice for companies that want to “go public.” Benefits include zero state corporate income tax for companies that operate outside Delaware, a special court system established solely for business disputes and very low incorporation fees.
Nevada
Nevada is rapidly gaining a reputation as a business-friendly state thanks to near complete anonymity and favorable tax treatment including
- Zero state tax on corporate profits
- Zero state annual franchise taxes
- Zero state personal income tax
It’s easy to see why Delaware and Nevada are two of the most popular choices when it comes to deciding where to
incorporate your business. Location matters!