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 state should you 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. 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:
All of these states are state tax free, have good pro-business laws and have fees that are reasonable.
Here are some of the things we know about other states on our lists:
|Benefits||Wyoming||South Dakota||Delaware||Nevada||Alaska||Arizona||California||Colorado||Florida||Hawaii||Idaho||Illinois||Indiana||Iowa||Michigan||Minnesota||Missouri||Montana||Nebraska||New Jersey||New Mexico||North Dakota||Ohio||Pennsylvania||Texas||Utah||Virginia||Wisconsin|
|No state corporate income tax||>|
|No tax on corporate shares|
|No franchise tax|
|Minimal annual fees|
|One-person corporation is allowed|
|Stockholders are not revealed to the State|
|No annual report is required until the anniversary of the incorporation date|
|Unlimited stock is allowed, of any par value|
|Share certificates are not required|
|Minimal initial filing fees|
|No minimum capital requirements|
|Meetings my be held anywhere|
|Officers, directors, employees and agents are|
|Continuance procedure (allows State to adopt a corporation formed in another state)|