MIME-Version: 1.0 Content-Location: file:///C:/672A92E5/WheretoIncorporate.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Where to Incorporate: Delaware, Nevada or Stay at Home

Where to Incorporate: Delaware, Nevada or Stay at Home?


For decades, many of us have heard and read about = Delaware being the state in which to incorporate your business. In more recent times Nevada became another "hot spot= " to incorporate. Millions of new businesses have been incorporated over the last few years, and the question still rages.

 

Pros & Cons of Delaware

According to several sources, over 50% of NYSE companies a= nd over half the Fortune 500 are incorporated in Delaware. It has a reputation of bei= ng a business-friendly state, especially if you "go public," (publicly-traded shares of stock). Commonly noted advantages include:

·           &nb= sp;            =             &nb= sp;            =         Anonymity — officers and directors do not have to be listed in the Articles       &nbs= p;  

·           &nb= sp;            =             &nb= sp;            =         Low incorporation fees

·           &nb= sp;            =             &nb= sp;            =         Low franchise tax rate

·           &nb= sp;            =             &nb= sp;            =         No state corporate income tax

If your business resides in the state of Delaware then you would automatically consider incorporation therein. For those located and conducting business= in other states you may have additional obligations, despite Delaware incorporation. For example,= a Delaware corporation conducting business in Illinois must file for a Certificate of Authority= from the state of Illinois; and the corporation will pay annual franchise taxes, annual filing fees a= nd registered agent fees in both states.

 

Pros & Cons of Nevada

The conditions for incorporating in the State of Nevada are very similar, and in some cases better= , than Delaware:

·           &nb= sp;            =             &nb= sp;            =         Anonymity — shareholder information is not for public record,

·           &nb= sp;            =             &nb= sp;            =         No state corporate income tax

·           &nb= sp;            =             &nb= sp;            =         No annual franchise tax, and

·           &nb= sp;            =             &nb= sp;            =         No state personal income tax

Nevada state incorporation fees are higher than some other states', but their annual f= ees are nominal -- especially since, as mentioned, Nevada has no state income tax. Agai= n, however, if your Nevada corporation physically resides and conducts business in other states, the= re is the matter of having to file for foreign authority and pay fees and ta= xes in the other state.