What’s the Best State to Incorporate In?

The state where you choose to incorporate is important. So, what is the best state to incorporate in?

Income tax, filing fees, and franchise taxes vary from state to state.

There are countless stories of people incorporating in different states for tax benefits and other reasons.

The following information will help you decide

The Best State to Incorporate In

Very simply, the best state to incorporate in is the state where you plan to do most of your business.

While people save money incorporating in Wyoming, Delaware, or Nevada, the state in which you incorporate should still reflect the location you choose for your business hub.

After all, why not go with a state you already know?

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1. Incorporate In May Be Your Own State
2. Best State to Incorporate In a State Outside Your Own
3. The Advantages of Registering in Wyoming
4. Second Best State to Incorporate In
5. What Happens Next
6. Basic Steps for Registration

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The Best State to Incorporate In May Be Your Own State

You can choose a state that offers business-friendly and tax advantages too. However, choosing your state may be the best business to incorporate in for the following three reasons.

1. Convenience

It is more convenient to incorporate in the state for your business location as you already know what to expect and have easier access to government offices and the court system.

2. Choosing or Changing the Business Name Is Simpler

By incorporating your business in your own state, you can choose a business name with more ease or change it accordingly.

3. The Payment of Taxes and Fees Shows Your Commitment

While taxes and fees may be more in your state, incorporating in your own state also shows you are making a commitment to making a living in that state.

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Choosing the Best State to Incorporate In a State Outside Your Own

If you do business in your state and other locations outside your state, you must register in another state as a foreign entity.

If you need to do this, the best state to incorporate in is usually cost-and-business-friendly Wyoming, Delaware, or Nevada.

Regardless of where you choose to “set up shop,” you need to make sure all the proper steps are followed and the legal paperwork is in place.

I can, as your business attorney and advisor, help you achieve your goals along these lines. Contact me anytime.

Email sam@mollaeilaw.com for further advice and direction.

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Selecting the Best State to Incorporate In – The Advantages of Registering in Wyoming

One of the best states to incorporate in, from a cost perspective, is Wyoming.

So, if you want to register your business as a foreign entity, or simply wish to save money, I highly recommend choosing this state.

Nevada and Delaware may receive a lot of press when it comes to incorporation.

However, Wyoming has a long and distinguished history of offering companies economic incentives.

That is why the state is the desired location for startups and entrepreneurs.

Mollaei Law Legal Fact: Did you know that Wyoming was the first state in the U.S. to allow businesses to create corporations? Wyoming state law granted permission for the formation of limited liability companies (LLCs) in 1977

Incentives for Incorporation

I like Wyoming for incorporating a business because it offers attractive incentives to businesses. For example:

• Wyoming does not assess a corporate state income tax or a franchise tax for a business that chooses to incorporate.
• The yearly report filing fee is under $100.
• The state does not collect personal income tax.
• The Wyoming sales tax is low – 4%.

As you can see, from the above incentives, you can definitely save money when you choose to register your business in the Equality State.

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However, with that being said, you may find it easier to launch a remote business in Delaware or Nevada, as these states offer more incentives for businesses that are not directly connected to them.

The Second Best State to Incorporate In

If you choose to operate a business outside of Delaware, it is better to do so as a large enterprise with shareholders.

That’s because the state offers more flexibility to larger companies. The second best business to incorporate in, as a remote business, is Nevada.

Reasons for Incorporating in Nevada

Below are some of the reasons for registering your business in the Silver State.

Foreign Entity Registration
You can incorporate in Nevada if you don’t intend to run your company in the state by registering as a foreign entity. Many companies that operate in another state also incorporate in Nevada.

No State Taxes
As a Nevada business, you do not have to pay state taxes, such as corporate income tax, gift tax, admissions tax, or franchise tax. If you do live in another state, however, you usually will have to pay taxes to that state.

I can help with the tax and legal details for a Nevada incorporation. Contact me now. Email sam@mollaeilaw.com

More Privacy
If you are concerned about privacy, Nevada is a good choice for incorporation. The state does not require businesses to list the names of their directors. You can enjoy total anonymity.

Instead, you can name your attorney as the person of record, for business activities.

Learn more about the details now. Email sam@mollaeilaw.com

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Increased Asset Protection

All lawsuits that impact your corporation stay with your business in Nevada. Some states have loopholes that hold business owners liable for unforeseen damages.

In Nevada, you are not required to list corporate assets – they are only required for federal records. Therefore, you enjoy increased asset protection.

What Happens Next?

Once you figure out the best state to incorporate in, you can learn more about registration. Each state has its own set of rules and regulations. Therefore, make sure you have the proper legal support.

Give me a call or email sam@mollaeilaw.com to receive the legal guidance you need today.

Basic Steps for Registration

After you decide to incorporate, you will need to do the following activities:

• File articles or organization (for an LLC) or articles of incorporation (for a corporation).
• Apply for an employer identification number or EIN for tax identification purposes and to apply for a business bank account.
• Register your business and, if incorporating outside your business-based address, register your company as “doing business” as a foregin entity.
  Each state has its own rules about foreign entity registration. That is why you need to rely on the services of a business attorney.
• Ask your business attorney about your tax responsibilities in the state of formation as well as any state you register as a foreign entity.

As you can see, registering and incorporating a business is not all that cut-and-dried. You will have to discuss the matter with a qualified attorney.

Get your questions answered now. Email sam@mollaeilaw.com today. I will do all that I can to address your business concerns and support your company’s initiatives.

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