ADMITTED TO PRACTICE LAW IN CALIFORNIA, NEW YORK AND TEXAS

eMinutes 101 - The Basics for First-time Entrepreneurs

3 most common questions

Where should I form my company?
The best rule of thumb is that it makes sense to form the company in the state where you are doing business.  Our lawyers will help you determine the best state for your company, but in the meantime, the following are some basic guidelines:
  • If you form your company in a state other than where your business is located, you will be required to "qualify to do business" in your own state.  Doing so, subjects your company to all the same fees and taxes as if you incorporated in your own state in the first place.
  • For the most part, the notion of forming a company in Nevada is a myth.  There is no benefit unless you are doing business in Nevada.  And, you will likely incur additional costs.
  • If you plan to move to another state in the future, Delaware could save you a great deal of money, by making it easy to stop paying tax in the state you are leaving.
Articles
What It Means to Properly Form a Corporation New York’s Burdensome LLC Publication Requirement: Relief May be on the HorizonDelaware: Homerun for Celebrities and Investors
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Videos
What is the benefit of incorporating in Delaware? Should I form a Nevada corporation?
Should I form a LLC or a corporation?What should I do after I form my company?