WHERE SHOULD YOU INCORPORATE?

Delaware: Delaware's advantages as a place of incorporation range from the comparatively liberal Delaware General Corporation Law to the flexibility built into the corporate formation process. Incorporating in Delaware is generally less expensive than most other states. There is no Delaware corporate income tax for corporations that are formed in Delaware so long as they do not transact business in Delaware. Delaware law also allows for a version of the Limited Liability Company called a Serial LLC. Traditionally, an LLC is relatively simple to form and maintain. It is similar to the formation of a sole proprietorship or a partnership, but also provides a layer of protection (the corporate shield) as a limitation of liability. Unlike regular LLCs, Delaware's "Serial" LLC allows different lines of business to be treated separately from each other from a liability standpoint.

Nevada: Nevada began with corporate statutes based on Delaware, and went further to establish a corporate structure that allows investors and owners of Nevada corporations to remain completely private. The Supreme Court of Nevada has consistently taken a very strong stand in the protection of corporate privacy, even when a corporation fails to adhere to basic corporate formalities. Unlike most other states, Nevada does not require corporate stockowners to disclose personal information to the general public. In fact, the information is not kept on file with the state. Additionally, to ensure privacy, Nevada allows its corporations to use bearer stock certificates, which make it virtually impossible to prove the ownership of a Nevada corporation. Accordingly, owners or investors utilizing bearer shares can have complete control and ownership while remaining anonymous. Nevada also does not tax the income of its corporations or its state's citizens. A Nevada corporation is also not subject to any other hidden taxes such as franchise taxes, capital stock taxes, or inventory taxes. Sales tax applies only to products sold within the state.

Your Home State: For most small businesses, however, it may still be best to incorporate in the state where that business is based. Even though some factors favor incorporating in the "friendly" states of Delaware or Nevada, it may be more expensive and more of a hassle to incorporate a smaller business out of state. For this reason, it is important to consult with your attorney or accountant about the pros and cons of incorporating out of state before making your final decision.

The above-mentioned tax benefits may or may not apply to you. In particular, some of the benefits described apply only to C-Corporations ,whereas others apply only to S-Corporations .For this reason, it is important to consult your accountant or attorney about your particular situation. If, based on your current financial composition, he/she advises you to incorporate or form an LLC, visit today and we'll be more than happy to assist you with your document filing needs.

To learn more about where to Incorporate your Business, go to mycorporation.com!