Where To Incorporate
When you form a corporation, you have to first decide where to incorporate. Then find the best people or businesses to help you achieve that goal.
1.Â Domestic or Foreign – Depending on the type of business youâ€™ll be conducting, you may need a domestic or foreign corporate entity. Domestic means the corporation was formed in the state in which the business operates. Foreign means itâ€™s incorporated in another state or country.
2.Â Delaware Corporations – Right now, more than 500,000 businesses are legally formed in Delaware, including over 50% of American publicly traded companies and 60% of the Fortune 500.
3.Â Nevada Corporations – Like Delaware, Nevada has very loose incorporation laws to attract more business. Some of the advantages are that it allows bearer stock, offers privacy to corporate participants, has no state income tax, and they do not share information with the Internal Revenue Service.
4.Â Double Incorporation – If your state has high income taxes, then you might want to incorporate twice â€“ once in your state and once in another state that doesnâ€™t have income tax, such as Delaware or Nevada.