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The advice about Delaware and Nevada isn't necessarily good advice in terms of liability and in terms of taxes. If you're sued, you may have to go to Delaware
by zngtk4 17y ago
The advice about Delaware and Nevada isn't necessarily good advice in terms of liability and in terms of taxes.
If you're sued, you may have to go to Delaware or Nevada to defend yourself, and even if not, you may be subject to the laws of Delaware or Nevada, which will be different from the state you are operating from. From a book I have (called Asset Protection by Adkisson and Riser):
Under state law, having a registered agent in the state of incorporation creates nexus sufficient to allow the corporation to be sued in that state. This fact alone may affect the decision where to incorporate. A jurisdiction where jury verdicts tend to be very conservative may be preferable to one with a reputation for runaway jury awards. The cost of defending a lawsuit may also be a significant factor in this decision. Defending a lawsuit in the owner's home state will be substantially cheaper than defending the same lawsuit across the continent [or as one person here says, across the world]. This may be a factor in deciding where to incorporate
Delaware also imposes different laws on the roles and duties of directors and treatment of Shareholders. Do you know what these are?
Further you do not avoid taxes by incorporating in Delaware! You have to pay taxes in the state you operate in. So even if you are a Delaware corporation, you would pay taxes in Pennsylvania if that is where you operate (and you have to operate in a different state to not pay Delaware corporate taxes).