Where To Incorporate?

 
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Posted On : 1st Sep 2009

Which is the best state to register a business?

First considerations after a new business decides to incorporate is where to incorporate. For most businesses, incorporate in the state where the corporation will do most of its business. This rule holds especially true for smaller businesses that will likely not expand significantly, or that do not want to conducting business outside of their home state. So, incorporating in your business's home state is usually the safest to start your new business. Then if, after your corporation has been up and running for some time, it appears that you may need to conduct business in another state, you can always register in another state as a foreign corporation also known as "Foreign Entity"

Each state has its own legal requirements and registration procedures for new businesses wishing to incorporate. Certain states are well known as favorable homes for corporations or forming an LLC, due to their unique incorporation laws and favorable tax policies.

Most popular states to incorporate your business are:

Note: You cannot register your business other than your home state to avoid paying taxes.

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ATD

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I am a US Citizen, now currently in India and likely to be here for several years. I would like to open an LLC in my former home state of Maryland in the US (I will likely be the only employee as a consultant), and provide my consulting services in the telecommunications area to US companies. Following are my questions: 1) Can opening an LLC in US be done, without me having a permanent address in the US and myself working from India to US companies 2) If so, what are the general tax implications? I assume that I will have to pay US taxes, including SS matching for myself. What is the approximate tax %? I assume that I will not get any typical tax benefits of a US resident LLC 3) I will be charging customers typical US labor rate and getting paid in dollars Thanks!

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Reply from: infotaxsquare.com | 2012-08-24

Dear ATD:

Thanks for choosing InfoTaxSquare.com for your business needs. You can use the following link for most of your questions and if still need any assistance please call us at 1+516.822.3100.00 to Register LLC in Mariland.

https://www.infotaxsquare.com/e-book/

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Nicole Brown

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Opening a small business (food store) what I should do first I need help with business plan where to register?

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Reply from: infotaxsquare.com | 2010-05-05

  • Decide the best structure for your business like Corporation, Limited Liability company or sole proprietor
  • What licenses you may need?
  • Do you to have to buy workers compensation for your employees?

It is highly recommended to retain a professional to guide you step-by-step

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Nannei Tanson

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What are the pros and cons of re-incorporating under a different/new name, tax ID etc?

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Reply from: infotaxsquare.com | 2010-05-05

A pro as making a fresh start/clean break/clean new books? A con as losing the good credit history built up? Other considerations? Overall bad or good idea?  From tax perspective maybe?

 

  1. If trying to avoid tax liabilities then it is a bad idea
  2. If you owe  p.roll or sales taxes to the departments then new licenses will not be issued until pay all prior dues.
  3. With a new start will lose all credibility
  4. Bottom line it all depends what you want to achieve by creating a new entity instead of using existing.