2006-06-06 15:51:00 · 4 answers · asked by jimfortest 1 in Business & Finance ➔ Small Business
There are a couple factors to consider when deciding where to incorporate your new business:
One is the type of business. If the business is very involved, if you are going to have employees, etc. then it generally makes the most sense to incorporate in the state where the business will be located. If you choose to incorporate in a different state, chances are that you will be required by law to then qualify that same business in the state where the business is located, thus subjecting you to the same taxes and legal requirements you would have had from incorporating in that state, in addition to the other's states taxes and requirements.
Two is the location of the business. Based on the first consideration, if your business is not of the nature that requires you to be registered in the state where the business is located (i.e., many online businesses without employees, etc.), then you are best off incorporating in a state that offers advantageous tax benefits and limited requirements. The most popular states in this instance are Nevada and Delaware.
Hence, if you are located in New Jersey and your business will have employees and/or any other factors that would require you to be qualified with the State regardless of where you incorporated, then it doesn't make sense to go elsewhere. However, if your business is not likely to be required to qualify with New Jersey, then you should consider the more favorable tax states.
In general, New Jersey is one of the worst states to deal with for business. They have a high minimum tax in addition to the most difficult and complicated tax booklet that must be completed each year.
For more information on incorporations you should call a corporate service company, such as CRS (http://www.crslink.com). They deal with nationwide business filings and could provide some assistance.
Additionally, Registered Agent Solution's website (http://www.rasi.com) has a useful resouce center for obtaining state information.
Lastly, I highly recommend talking to a CPA and Attorney about your business idea and the factors involved that may require you to be registered where the business is located. However, Attorneys often charge more for incorporations, and you can call a service company like CRS and save thousands once you know where you would like to incorporate.
Good luck!
2006-06-07 09:45:26 · answer #1 · answered by dean_thomas800 1 · 0⤊ 0⤋
It really depends on local and state and what *kind* of business you're going to start up;how large it's going to be (just yourself, 10 people, around 50, more than 100, etc); if its going to a franchise, family-operated, completely from scratch; and plus, there's a ton of paperwork involved no matter where you live. The best idea would be to round up some close friends and start a business from there, especially if some of you already have some experience in the area you're going into. Start making connections, find an office space, make a website, and go from there. If it doesn't last more than a few years, don't sweat it, You learned some valuable skills along the way. :)
2006-06-06 23:04:01 · answer #2 · answered by eet2006 3 · 0⤊ 0⤋
Why not the state you are in right now. Online business don't care which state you are in. Check out the resources here on this site. Who knows?
2006-06-06 22:57:19 · answer #3 · answered by Looking Up 5 · 0⤊ 0⤋
hey i think --- if u r really looking for a drastic growth in short period of time start the same business with its base in India cox of the conversion rate of dollars and cheap labour u can operate from India and also grow in India
2006-06-06 23:54:47 · answer #4 · answered by ram 1 · 0⤊ 0⤋