As per zach, the state where you're operating is going to impose income/franchise taxes regardless. I've heard of strategies that involve multiple entities. S

As per zach, the state where you're operating is going to impose income/franchise taxes regardless. I've heard of strategies that involve multiple entities. So for instance you might form a Nevada entity that owns the IP and licenses it to the operating entity. The licensing/royalty fees serve to shift a fraction of your income out of state where it can't be taxed. That's all I know. For us it'd be way too much hassle just to avoid (some of) the ~4% franchise tax.