Legal Question in Business Law in California

Re: what state to incorporate

You have probably heard that there are "advantages" to incorporating in a state such as Nevada or Delaware, even though you business isn't located there. In my opinion, those advantages are illusory unless you have a big, publicly-traded company and a particular need for an advantage which you understand. For the average small business, there is no advantage, but several detriments including the opportunity to pay frnachise taxes to both states and prepare and file multiple tax returns. A Nevada corporation doing business in California must pay the same taxes and reveal the same information as a California corporation must.

Re: what state to incorporate

That decision should be made in coordination with your attorney and your tax adviser. Feel free to contact me for the legal help you're going to need.