When incorporating, there are many important decisions to be made. Chief among them is deciding which state to incorporate in. Because most corporate law is decided by state statute, deciding what state to incorporate in will determine the majority of the laws your corporation must follow. There are a number of factors that a corporation should consider when deciding what state to incorporate in. This is not an exhaustive list, but consulting with an experienced legal team can help you make the decision that is best in your interests.
The first factor to consider is how local is your business. Smaller corporations will want to incorporate locally. This is more of a convenience factor than any other consideration. For example, a corporation will want to incorporate in Florida if it has one office and does not operate nationally, despite the fact it may find that the laws in another state are more favorable to incorporation.
Another factor to consider are the taxes and fees associated with incorporating. For some corporations, the tax schedules are larger in certain states than others due to the sheer volume of income it generates. States can also differ on the fees involved in incorporating, and annual filing fees. Additionally, state law will determine what goes into the corporate charter.
There are many considerations to take into account when deciding where to incorporate. Once deciding where to incorporate, it is important to understand that state’s corporate laws in order to avail your company of corporate protection. When deciding where to incorporate, it is equally important to consult the right legal team to ensure that you incorporate correctly and deciding which state is best to incorporate. Call the Trembly Law Firm at (305) 431-5678 today to schedule a consultation.