Where Should I Incorporate?
You’re starting a new business. Congratulations! PandaBiz.Net.com is here to help. One of the first questions you have is: “Where should I incorporate or form my LLC?” It can be confusing to decide the best state.
A friend or colleague may have told you to consider filing in Nevada or Delaware. You may believe that Florida or Wyoming have favorable tax laws. These may be great options, but most businesses find that their “home” state is the best state to incorporate or form an LLC. The “home state” is the state in which you are doing business. It is generally the state in which your office is based.
If you incorporate in your home state it is likely to simplify your tax returns. Also, entities that incorporate or form an LLC in a state other than the home state often have to qualify to do business in the home state anyway. That means you have 2 filings instead of 1. If your business is operated out of multiple states, talk to your accountant about favorable tax laws, filing fees and other attributes of each state. Whether your home state or otherwise, it is essential to protect personal assets, add legitimacy to your business, and take advantage of tax savings by incorporating or forming an LLC.