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Why Incorporate in Other States?

There are times when the best place to incorporate is close to home. For example, if you operate a service-based business or a storefront in your home state, you may think twice about incorporating elsewhere. Even if you incorporate elsewhere, you will still have to register your company to do business in your home state. You will still pay taxes in your home state. You will still be bound by the laws of your home state. Plus, you’ll have extra filing and maintenance fees as you maintain your company in your home state as well as your incorporating state.

To Determine Your Best Incorporation Options, Ask Yourself

  • Where is my physical business located?
  • Where do my employees live?
  • Do I invest in real estate, and if so, where is that real estate located?
  • Am I planning on selling that real estate and buying other real estate investments in other state(s)?
  • Am I planning on moving out of the state and relocating my business?

Depending on the answers to these questions, you may be part of your home state’s tax system.

 

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