Why Incorporate in Business Friendly States?
It can be intimidating to choose a state to incorporate your business in. You don’t need to incorporate in the state where you or your business physically resides. In business friendly states, you can incorporate and receive tax benefits without actually living there or operating your business in the state.
While each business is different, some states simply stand out as good choices for incorporation. Delaware, Nevada, and Wyoming are ideal choices for incorporating your business due to their business friendly rules, enhanced privacy, and knowledgeable courts.
Benefits of Incorporating in Delaware:
- Unsurpassed Flexibility – Delaware offers businesses lots of flexibility when it comes to the set up of your organization.
- Enhanced Privacy – You do not need to disclose key details about your officers and directors.
- Established Savvy Court System – Delaware uses judges with expertise in corporate law instead of juries.
- Attractive to Investors – many investors and banks show strong preferences for Delaware corporations.
- Tax Advantages – With business friendly tax laws, there are clear financial reasons to incorporate in Delaware.
Benefits of Incorporating in Nevada:
- No State Taxes – The most important benefit of choosing Nevada is the lack of state taxes.
- Enhanced Privacy – You do not need to list owner names in order to incorporate. You, your investors, and other interested parties can remain anonymous.
- Asset Protection – Any liability your business incurs is kept with the company. While incorporation in any state protects you against most liability, other states have loopholes that could cause you to be held personally responsible for damages caused by your company.
Benefits of Incorporating in Wyoming:
- Flexibility – Wyoming offers several options when it comes to how you can run your business.
- Business Incentives – There is no corporate state income tax or franchise tax for corporations, and the annual report filing fee remains low.
- Tax Advantages – Wyoming does not collect personal income tax and has a low sales tax, all of which can help you save money.