Best US state to incorporate

BlueYonder

BlueYonder

Flaming panties
Aug 13, 2008
2,661
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New York Metro
The last thread on this topic was too old to post to, so here's another one. Since then, Nevada began enforcing the new business tax for having your corp in Nevada, $200 yearly. :mad:

I am in the process of redoing my corp from an "S" to LLC., and moving it from Delaware to Nevada. Nevada has no income tax, except for the new $200 business fee. Delaware has an income tax. I want to live in California. Soooo... Nevada or Delaware is best? I have no plans to reside in either state. I just want to pay the lowest taxes possible, and not stir up the IRS. :eek:

I saw in the earlier threads people have multiple corps. What is the good of that? Another thing: If you reside in the state of California, but are incorporated in Nevada, does the new Amazon.com affiliate sales tax rule apply to you?
 


Washington, Nevada, and Wyoming tend to have some clear advantages, Delaware doesn't have the "ultra pro-business" advantage it once did, but its still pretty good. Florida is typically a pain, but nice for certain real estate-based businesses. Depends on what you are looking for. tax advantages, favorable courts, privacy, uncomplicated agency relationships, cheap fees (which should be low on your priority list, but w/e) etc.
 
dchuk said:
$200 is nothing man, don't let that stop you.
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They're broke, so they won't stop there. Broke states get drunk on easy permit and business fees, and I know this because I live in NY. Fees for everything in life have been tripling lately, even for a damn sticker to park your car!

Wyoming is financially in the black, and very business friendly.
 
$200 is nothing, but I see your point.

Ponder this for a moment... If your going to go thru all the headache of setting this up in another state ( its not a real headache though ), why not go the extra mile and setup offshore? Take a couple weeks, visit some nice places offshore and make a choice.

Im not saying to do this to avoid taxes, but you will have a lot more privacy and no worries of Amazon closing down on states either ( cause you wont be in one ). Let your business make money offshore in a tax haven, have a bit more privacy, and do away with a lot of the paperwork and fee's you would have in the states.

Do pay yourself a reasonable salary though here in the states and pay the proper taxes on that salary. The rest of your money simply stays in the business account as needed...
 
Thanks for the replies and advice on this boring topic. I ultimately decided on Wyoming, which is actually kind of fun in a way. I don't know why. :)

eliquid, your advice was tempting, but it wouldn't work for me. I need a corp faster than that because a client of mine needs to begin paying me company-to-company, and he's not gonna wait until I finally get around to making a corp. He wants me to begin working now, as soon as I inc.
 
No need for a service. You can contact the state for the fast file options and you can be your own agent until you wish to name one (if at all). I did mine in a day for like $150 to the state. Your bank should have a notary.
 
Jizzlobber said:
No need for a service. You can contact the state for the fast file options and you can be your own agent until you wish to name one (if at all). I did mine in a day for like $150 to the state. Your bank should have a notary.
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I already filed, and the service to do all the paperwork was just $35, so it was a no-brainer for me because I hate this stuff. WY makes you hire an agent in the state. I think now we're good to go, and the conclusion will take about a week.
 
BlueYonder said:
I already filed, and the service to do all the paperwork was just $35, so it was a no-brainer for me because I hate this stuff. WY makes you hire an agent in the state. I think now we're good to go, and the conclusion will take about a week.
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Well done. Most of my costs were due to the state for the immediacy fee - I needed to be listed quickly due to a pending non-disclosure agreement check. Best of luck.
 
Montana is not a bad state either,no sales tax and I think 5% income tax, but if you do work for a customer in california and you live in California, by law you need to register in that state as a foreign corporation and pay applicable taxes on money made in that state. It is the same in most states. I am registered in Montana because I live here and it was only $70.
 
profchaos911 said:
Why are people saying that Delaware is not as good as it used to be? And, what is this BS I read someone saying that it has a tax? If you're incorporated in Delaware but don't operate there you don't pay state taxes.

Delaware General Corporation Law - Wikipedia, the free encyclopedia

I'm curious what are the specific reasons why people like Nevada, Wyoming, etc?
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Here is a comparison chart which throws up the most essential features of each state:

DELAWARE VS. NEVADA VS. WYOMING | MyUSACorporation.com

I checked out lots of other resources before deciding on WY. Google is an easy way to find info, BTW.
 
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