If your state has high income taxes, then you might want to incorporate twice – once in your state and once in another state that doesn’t have income tax, such as Delaware or Nevada. 

 Then you just transfer your profits from one corporation to the other.  At some point, the federal taxes must be paid for the profits in whichever corporation they’re in.

 Before you rely on this type of situation, make sure you consult a tax specialist in your area that can advise you on whether or not your state has a “catch all” tax law that prevents this kind of arrangement.

 When deciding where to incorporate, you might want to consider where your facilities are located, the cost of incorporating in a certain location, and the laws you’ll be subjected to once you do incorporate.