Can You Incorporate Your Business in Another State?

So you think it's too much trouble to incorporate in another state; well you're wrong.

by Howard J Giske

October 27, 2006

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Many business people must be shaking their head. What is the use of incorporating in Nevada, in Delaware, or in another state other than their own, when they are located far from your office. If you do most or all of your business in your home state, or a couple of neighboring states, it may not seem worth the hassle of incorporating in another state.

However, if you have deal with customers from all over the 50 states or all over the world, consider the benefits of incorporating your company in Delaware or Nevada. Nevada incorporation, a state with no corporate or personal income taxes, may be just what the doctor ordered. With modern communications, national and international phone rates coming down and the Internet carrying information all over the world, new options exist that never were available before.

You can forward your mail using US Mail and other carrier services, and you can stay in touch from anywhere around the world. You may have to pay fees and file forms in many different states regardless of where you are incorporated, depending on your type of business. These fees are associated with the right to do business in these states whether you are incorporated there or not.

The benefits of incorporating in the states of Delaware and Nevada are well known. They start from no or low corporate taxes, and go on from there. In the state of Nevada, there are no personal income taxes or corporate taxes. There’s no information sharing by the local or state government with the IRS. The low state licensing and other fees, and the minimal disclosure requirements have made Nevada a true incorporation paradise for companies all over the United States and throughout the world.

Now with cheaper international phone service and using the Internet, it is easier than ever to take advantage of these possibilities in Nevada. These are things that are particularly easy to do today with the Internet. Anyone with a secure telephone and Internet, one can send scans and faxes through the Internet at lightning speed, and even send MP3 audio files.

You can arrange to have goods mailed from your U.S. corporate location with a US postal mark. There’s also virtual receptionist answering your phone calls and forwarding them to your operating location. Alternatively, summaries of important calls can be sent to you by email. Office facilities are available too, that can be as little as a cubicle with a telephone extension, a fax machine and a computer.

It can also include the use of facilities on a time share basis including a conference room or a board room. You may make use of a local representative to get you the paperwork about sales tax, local business licenses and your state business license. Such a “business agent” is available from some companies that are also involved in the mail forwarding and mail drop businesses. This will give you a stronger local presence by having an officer of the company at your place of incorporation.