QUESTION
Should I incorporate in state (CA) or out of state for a web business?
Asked on Oct 21st, 2012 on Taxation - California
More details to this question:
We're starting a web-based company in California that does NOT plan to take VC money. What's the difference between incorporating in state versus out of state, specifically in Nevada? Vaguely, my research says incorporating in Nevada will be cheaper both upfront and tax wise, but that there will be more paperwork, but I can't get any more specifics. Can you give your pros and cons for incorporating in state (California) versus Nevada or another state?
1 ANSWER
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If you are going to be a multi-state business, incorporating in Nevada will be a good deal. If you will do business in California, then your California expenses (taxes and qualifying) will be more if you incorporate in Nevada. Since you are here, probably it is best to incorporate here and change the state of incorporation when you are ready to go public (if ever).
Answered on Oct 24th, 2012 at 5:36 AM