[Conny Westh]

Question: I operate my business from my home state. I have heard there are advantages to incorporating my business in Delaware or Nevada. Where should I incorporate?

Answer: While operating your business from your home state is probably the most cost effective, both Delaware and Nevada can offer advantages that other states can not.

Some of the reasons for Delaware's popularity include:
- Out of state businesses don't pay Delaware corporation taxes.
- There is no minimum capital requirement to form a Delaware business entity.
- There is no personal income tax in Delaware for non residents.
- One person can hold all Officer and Director positions.

Some of the reasons for Nevada's popularity include:
- There is no franchise tax in Nevada.
- There are minimal reporting and disclosure requirements for Nevada corporations.
- There is no personal income tax in Nevada for non-residents.
- There is no IRS information sharing agreement for Nevada corporations.

A factor to consider, when forming a company in any given state, is that the company may also have to qualify to do business in other states where it owns property or otherwise conducts business. Generally, qualifying a company to do business in a state other than its state of formation may require filing fees or other documentation. Also, if a company fails to qualify to do business in a required state, it may be subject to penalties.

The Company Corporation can help you form a business online in any of the 50 states or the District of Columbia in as little as 10 minutes. We have formed more than 300,000 businesses nationwide for entrepreneurs just like you.

Källa: http://www.incorporate.com/ecommerce_story_3.html