The Best Place to Incorporate

In the past, in order to form a corporation in most states, you had to use a lawyer to guide you through a very long, restrictive and costly legal process. Delaware was one of the first states to ease most of these restrictions. This resulted in many businesses rushing to form Delaware corporations. Today, however, many states, including New York and Nevada have made it simpler to form a corporation. Hence, it has become advantageous for a small business to incorporate in its home State (where business conducted). In fact, incorporating in a State that is not the State in which you operate has the following Disadvantages:

• You will still have to pay a fee to register your business with your Home State as an "out-of-state corporation". In most cases this fee is higher than that of Incorporating in your home State.
• You will have to pay a registered agent in Delaware to conduct your corporate affairs and receive your mail.

• What if an out-of-state customer sues you? You will have to contest the case in that state or in Delaware.

Most small business experts agree that for small businesses it is usually more advantageous to incorporate in their home State. Contact your lawyer or accountant for further information