Sutton Law Center

Where Should You Incorporate Your Business?

Are you looking to incorporate your business? If so, a Nevada incorporation attorney advises you on the best state in which to incorporate your business.

Deciding which state to incorporate in is crucial for the success of your new business. The location you decide will affect your business in many ways:

  • Where you do your business;
  • How much business you will do; and
  • How your corporation (and you) will be taxed.

It may be in your best interest to incorporate in the home state, which is where your company will do most of its business. If you have business in other states, then you can apply to do business in that state by becoming a “foreign corporation,” which means you are incorporated in one state but can do business in another. Becoming a “foreign” company is a difficult process, involving many steps:

  • Filling out paperwork;
  • Paying a fee; and
  • Applying for and paying for permits and licenses.

You will also need to consider that you will be paying taxes in multiple states.

The laws of incorporation vary from state to state and can include how you keep records and how many shareholder meetings you need to hold. You will need to consider the following when making your decision:

  • Average amount of commercial space rent;
  • Price of land;
  • Property tax rates;
  • Rate reductions, if any, from local or state authorities;
  • Other incentive benefits from local or state authorities;
  • Construction cost;
  • Available transportation options such as railroads, airports and shipment companies;
  • Local labor pool; and
  • Types and number of permits and/or licenses needed.

The leading state for incorporation for nearly a century is Delaware. Delaware is popular for many reasons:

  • A legal system responsive to corporate needs;
  • A frequently revised and flexible body of corporate laws;
  • A comprehensive body of corporate case law; and
  • No corporate income tax for companies that are organized in Delaware but do not do business there.

However, in recent years, other states have become more incorporation friendly, specifically Wyoming and Nevada. Nevada offers the following to attract corporations:

  • No corporate income tax;
  • No personal income tax; and
  • Excellent property rates.

In addition, Nevada does not share corporate tax information with the IRS.

For more information on where you should incorporate, contact Nevada incorporation attorney Garret Sutton at 800-700-1430.

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