I realize this may vary slightly by the type of business, but I was wondering in general which states have the lowest tax rates and fees and other advantages. Also, any information on the best countries in which to base the international branch of an organization would be much appreciated as well. Thank you.
2006-12-04 13:41:46 · 7 answers · asked by me_unlike_you 2 in Business & Finance ➔ Taxes ➔ United States
Although there are several other variable to consider, the web link provided below gives an un-biased explanation. Delaware seems to be the most widely used statistically.
2006-12-04 13:46:58 · answer #1 · answered by personalfinancedaily 3 · 0⤊ 0⤋
I usually question anyone who says that Delaware or Nevada are great places to register your corp, then can only give vague reasons as to why. Unless you are a huge, and a public, corporation, or trying to hide something, then the very best place to incorporate is in YOUR OWN state.
If you register in another state, you will still have to register as a foreign (meaning out-of-state) corporation in every state where you have a business presence, anyway. (In many states, the costs are HIGHER for this.) You will still pay taxes in every state where you do business.
Unless you can identify a particular advantage to another place, register the corporation in your own state. If you have a choice, i.e. you are planning to move somewhere to start the business, then your larger concern is going to be where has the lowest taxes and the best business environment.
If you are a big enough corporation that Delaware law is somehow more advantageous than your own state, then you are big enough to hire lawyers to take care of it for you. Just a guideline.
2006-12-04 15:45:51 · answer #2 · answered by Bryan 2 · 0⤊ 0⤋
Which state a business decides to incorporate in is usually not chosen because of taxes. You are subject to state income taxes on the business if you do business in that state. It doesn't matter what state the business is incorporated in.
However, the state of incorporation is typically chosen based on the laws governing corporations. Like a previous answer stated, Delaware is one of the state with the most corporation friendly laws.
2006-12-04 13:54:48 · answer #3 · answered by jseah114 6 · 0⤊ 0⤋
As stated above, Delaware typically is the most corporate-friendly state.
Definitely disagree with the Cayman Islands recommendation. Incorporating off-shore is a major red flag to the IRS.
2006-12-04 13:50:21 · answer #4 · answered by sothere! 3 · 0⤊ 0⤋
Nevada....
Best country would be Cayman Islands.
2006-12-04 13:47:37 · answer #5 · answered by Pat B 3 · 0⤊ 0⤋
I've heard Nevada
2006-12-04 14:28:51 · answer #6 · answered by dodgerfan175 3 · 0⤊ 0⤋
nevada or delaware
2006-12-05 02:11:20 · answer #7 · answered by sdr35hw 4 · 0⤊ 0⤋