| Reasons to incorporate your small business out of | | | | Nevada, have advantageous tax laws, it might not be |
| state | | | | to your advantage to operate in your home state as a |
| So you've decided to incorporate your small business | | | | "foreign corporation". Many states require corporations |
| and protect your personal assets. Unless you live in | | | | that are registered out of state to register as a foreign |
| Delaware, Nevada or Wyoming, you're probably | | | | corporation. This registration is required to do business |
| considering incorporating out of state. Nevada has no | | | | and may also include yearly franchise fees and |
| corporate income tax on profits, no state annual | | | | income taxes. |
| franchise tax and no annual personal income tax. | | | | What if you get sued? |
| Delaware offers so much protection and flexibility that | | | | Incorporating may protect your personal assets but |
| most of the companies listed on the NYSE are | | | | that doesn't mean that someone can't sue your |
| incorporated there. Despite all the reasons giant | | | | corporation. To compound matters it may be |
| corporations are typically located out of state it might | | | | necessary to hire an attorney and defend your self in |
| be advantageous for your small business to | | | | your state of incorporation. Law suits in themselves |
| incorporate in its home state. Here's why. | | | | are a real hassle. Imagine having to travel across the |
| Hassles and expenses of incorporating out of state | | | | country each time you were required to appear in |
| You must have a local presence in the state you | | | | court. |
| incorporate in. So unless you've got a cousin in Nevada | | | | Well, what's it going to be then, eh? |
| that's willing to act as a legal representative for your | | | | Unfortunately the decision to incorporate out of state is |
| business, you're out of luck. Of course there is the | | | | not as simple as choosing the type font for your |
| option of hiring a registered agent to act as | | | | letterhead. There are several different factors to |
| representative for your corporation. Registered agent | | | | influence your decision. The most important of which |
| charge reasonable fees, but they often represent | | | | are your state of operation's tax laws and the size of |
| hundreds of other out-of-state corporations. Do you | | | | your business. This is definitely not a decision that |
| really want that person making legal decisions if you're | | | | should be left to one person. Speak with as many |
| unavailable, or would you rather pay an expensive | | | | qualified CPAs, attorneys and most importantly |
| corporate attorney? | | | | business owners who've been in a similar position |
| Taxes and franchise fees associated with | | | | before making a decision that could be very costly |
| incorporating out of state | | | | indeed. |
| This can get a bit tricky. Although some states, like | | | | |