Q&A: Best State to Incorporate?

I'm looking for the flexibility of a sole proprietorship with the security of a corporation. So, which state is the best to incorporate in if one person owns 100% of the stock and plays every role in the business? What are the requirements for forming a business in this state? Would you recommend visiting another state for any reason?

Incorporating in a state other than where you live and work will almost always incur additional expenses. In the state where you incorporate, you must have a registered office and a registered agent. It will cost about $100-$200 per year to have a registered agent unless you have a person (over 18) in the state of incorporation who will agree to be your registered agent.

Furthermore, if you incorporate in another state, the state in which you live and actually operate your business may require you to file as a foreign corporation (technically, your business is registered in a different state). This can cost anywhere from $60 to $250. (depending on the state).

Despite what you may have heard, there is no compelling reason for a home or small business owner to incorporate in Nevada or Delaware. Being in one of these states does not protect you or your assets any more than being in your own state would.

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