What State Should I Form My Business In?
The short answer that applies to most small companies is the state where you are planning to do business.
There are reasons for some businesses to be organized in DE especially if the business has minority owners or investors. The best answer on why that I have heard from an attorney on why DE is that DE has judges that understand business and business issues, so if you ever have litigation related to your formation or organization documents, you will typically get a judge that knows basic business issues.
Some people think it wise to form their company in a no tax state like NV, WY or FL. If you are doing business there, that can be a great option but if not, you will typically pay to form your business in the no tax state and then pay again to register your business as a “foreign corporation” in the state where you actually are conducting your business.
10/14/2019
By: Gary Grottke, CPA, Quality Back Office LLC