What Are the Best States to Incorporate In

Just the simple act of incorporating in your home state can protect your personal assets, reduce taxes, and provide a universe of “fringe benefits” such as retirement plans, deferred compensation, annuities, life insurance, and medical reimbursement plans, just to name a very few. Moreover, many of these benefits may be tax deductible to the corporation and tax-free to the employee (that would be you). So, what is the best state to incorporate in?

This normally depends upon what the company is going to be doing. All states have a law called Nexus. That law determines if you have to register a company you have formed in another state, in that state. All 50 states laws are different, but normally if you are going to have employees in a state or all your business comes from within a state, or you have an office in that state, you most likely would have to register in that state. If none of these apply to you maybe you can register in a better state than the one you live in. When considering the best state to incorporate a business, there are many different details that will govern your decision on that.

If you find out you have the option to incorporate in a different state, other than the one you live in, there are three states that come to mind that may be worth looking at:

1. Wyoming

2. South Dakota

3. Delaware

When it comes to considering the best state to incorporate for tax purposes, all these states are income tax free and corporation friendly. They also have good pro-business laws and have fees that are reasonable.

When it comes to the best states to incorporate in, here are some of the things we know about other states on our lists:

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