2 ms·
To anyone thinking about incorporating: unless you have a very good reason for doing so -- by which I mean solid legal and accounting advice, and money to pay
by georgieporgie 16y ago
To anyone thinking about incorporating: unless you have a very good reason for doing so -- by which I mean solid legal and accounting advice, and money to pay associated costs -- do not bother incorporating outside your home state.
As others have said, DE has a great, business-optimized court system. But if you don't live in DE, you're instantly at a huge legal disadvantage if anything comes up. Meanwhile, you'll be stuck paying:
* annual corporate filing fees (WY), minimum franchise taxes (DE), licensing fees (NV), income taxes (many states), etc. in the state in which you've incorporated.
* foreign corporation fees/taxes and income taxes in your state of residence.
* foreign corporation fees/taxes and income taxes in any other state where you do conduct significant business beyond sales.
* registered agent fees in the state in which you've incorporated.
* possibly mail forwarding fees, depending on what you're trying to do.
(I incorporated in Wyoming last year, then realized how dumb that was, dissolved the corporation, and re-incorporated in my home state this year)