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I agree with your sentiment overall, but "fucking moron" takes it a bit too far. Most entrepreneurs make far bigger mistakes without it having a significant im
by daeken 17y ago
I agree with your sentiment overall, but "fucking moron" takes it a bit too far. Most entrepreneurs make far bigger mistakes without it having a significant impact. In most cases, where you incorporate has very little impact down the line, and when it does, you probably should've been taking advice from a business lawyer in the first place.
- fatdog789 17y agoState of incorporation always affects the bottom line, immediately. It determines what legal requirements you must satisfy in organization and funding your business, including who your investors can be. It determines what taxes you pay, what tax credits you may qualify for, whether you can qualify for special small business contracts that many state governments restrict to small businesses within their own state. It also plays a large role in whether banks will provide business loans: many banks will not loan money to small businesses that operate in the bank's state but which are headquartered in another.