For months, I've been planning out an online-only short-term lending business. I was planning to register it as a c-corp in Delaware initially, because I heard that was the standard due to better tax laws and better courts and so on. But then I learned from another entrepreneur that it is unwise to register in another state because then you have to register in New York as a foreign entity and pay double taxation, deal with double the regulations, and so on. So I decided to research New York State's laws, but then I saw that short-term lending is banned here.
My question is: Should I register in Delaware just so I can get around my state's laws? If not, what options are there for me to proceed forward with this service?
Thanks for your time.
1 Answer from Attorneys
Congratulations on going forward with starting a new business. This isn't the type of question which you can get an answer by email. There are too many factors which can influence the choice of where to establish your company. Most especially if you're looking to get into a business which is highly regulated. Hiring experienced advisors up front is a cost of doing business which is going to pay off many times over.
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