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Since both founders are living in NY we would have to file in both states and it would be much more expensive. Also, we would have to periodically show some tra
by sourc3 14y ago
Since both founders are living in NY we would have to file in both states and it would be much more expensive. Also, we would have to periodically show some transactions being made in DE to justify our existence there.
Did you have to do something similar while you were filing as NY Headquartered S corp established as an LLC in DE?
- tptacek 14y agoo.O We've never had to show transactions in Delaware.
- sourc3 14y agoThanks! Clearly I need to talk to a couple more lawyers :)
- camz 14y agoyou generally avoid incorporating in states that you don't transact in initially to avoid additional tax compliance and costs that are significant. But, its a case by case situation that depends on business reasons and personal preferences usually. Legal entities are like "clothes" that need to be changed as a company grows and changes. Nothing ever stays the same forever, so theres a lot to think over.