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Incorporating in Delaware or Nevada

SriniSrini subscriber Posts: 1
edited November 2006 in Selecting a Business
Why do some businesses incororate in DE or NV?
What is the advantage or disadvantage?
Why do some companies incorporate offshore?
Any thoughts and words of wisdom are welcome.
 
Thanks
Srini 
 
 
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    NuevolutionNuevolution subscriber Posts: 30 Bronze Level Member
    This is a common  question  that always  comes up when one is  getting ready to  incorporate. The reason why alot of company`s decide to incorporate in DE or NV are because of the benefits that they offer. One of the benefits is the Incorporation fees. I don`t know how much they charge in DE but in NV it`s only $250 a year. Another advantage is; the Taxes, and privacy. To read more about Delaware Incorporation Benefits Click Here For information on Nevada Click HereThe cons are:If you decided to Incorporate in any of these states and you are not doing business there, you have to register your corporation as a foreign corporation in the state that you reside. You can find the pro`s and conns on that web site too..
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    DeafCeoDeafCeo subscriber Posts: 3
    i thought it was all gravy but thanks to the forgien inc act u gotta register
     
    so I am thinking it isnt worth registering in another state that is outside your home state
     
    growing up I knew Deleware was the in state... then i thought it was Neveda
     
    now I thought Florida because of it no corporate tax
     
    then I thought Wyoming because of it privacy
     
    but after reading everything - it is best to do it in your state
     
    yes there are tax breaks but what the point of the tax breaks if you gonna have to pay taxes again as a foreign corporation kinda of defeat the purpose of not being double taxed and really it a headache
     
    Keep It Simple Smarty and register in your state
     
    Let your CPA and Tax lawyer advise you the best move if you arent sure
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    TrueStormTrueStorm subscriber Posts: 0
    Nobody told you that if you incorporate your business out of your state or where you are going to have a physical structure (even a home office) you will also have to request a license to do business in your state ? If you live in Florida for instance, but you incorporate your business in Delaware, you will also have to file a Foreign Qualification papers in FL. Otherwise, you will have to go to DE to open a checking account and also have to pay a virtual office to have your legal address in DE.
    I think that incorporating out of your home state is not such a good idea as it semms to be.
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    NuevolutionNuevolution subscriber Posts: 30 Bronze Level Member
    Honestly,Its better if you incorporate in the state you are doing business in. Virtual offices are expensive, and just having to deal with the paperwork is a nightmare. Save yourself the headache.... If you are going to incorporate, incorporate in the state you live in. Forget about the Privacy, Tax benefits, and stuff like that.. because the minute you do business in the state you live in, you have to go by your states rules and regulations... So you saved on The TAX, but now have to pay your state for filing fees again, and what ever tax they request...
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    SriniSrini subscriber Posts: 1
    Thanks to all of you for your insight and information.
     
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