Advice on there to corp...

[happierr]

I hear a lot of ads and what not about...

Setup your Corp in <Navada> <Deleware> or so on...

I want to setup an S Corp, where should I do it? I would think that because it is an S Corp and all the money is passed onto my 1040 that going anywhere other than my home state would be a waste of time, but I could be wrong... so I yield to your advice...

Thanks!

[IntraHost]

Well an S corp is only a normal corporation with a specific tax "thingy." So yes, your profits and losses get passed directly to the owner(s). I would THINK that it would be a waste of time doing it outside of your home state because then you'd have to pay taxes to the company state and the home state and that wouldn't be fun.

Deleware court systems are generally nicer to companies, that and the tax stuff is why a lot of large companies get incorporated there. Nevada is also (becoming) like a Deleware in the sense of being nicer to companies and the tax advantages.

If you're a small company I'd just stick with a close to home solution. Heck, the taxes you and your business pays goes to support state programs that can help your business anyways.

[sirtwist]

Please remember that most states require foreign corporations to register in order to do business in that state. So, if your state has this requirement, it is often just as expensive to register a foreign corporation (i.e. one in Delaware, Nevada, etc.) to do business in your state as it is to form the corporation there in the first place.

Foreign corporations with a presence in those same states usually also have to pay the same taxes/franchise fees/etc. as corporations formed in that state.

IANAL, but this has been my experience, and I suggest that you review your state's rules on foreign corporations (meaning, any corporation doing business there that was not formed there, be it from another state or another country) before you choose to incorporate in Delaware, Nevada, or any other state.

[happierr]

Thanks guys, I was thinking the same thing, just wanted to make sure I was on the right track

[hysteriaweb]

Did you set your corp up yet? Let us know how it goes.