What state should your business incoporate in?

Martin Zwilling over at Startupprofessionals.com has a nice post regarding why start-up busineses should consider incorporating / organizing their business in their home state.  The post can be found here, but here is a brief summary:

  • Don’t automatically flock to incorporating in Delaware.  Sure there might still be some advantages to doing so, but they don’t really apply to start-ups.
  • In Indiana, where I practice law, the filing fees for incorporating a business are inexpensive and the process is relatively straightforward – not the case in popular states such as Delaware and Nevada.
  • Attorneys in your home state, if you are using an attorney (hopefully you are), will be more familiar with your state incorporation laws.
  • Your company may qualify for an intrastate securities law exemption in the event it offers securities for sale.
  • There is no need to register as a foriegn entity in your home state – and added expense if you incorporate elsewhere.

As he points out, there are many other concerns that should be addressed when determining in what state you should incorporate – concerns you should address with a corporate attorney in your home state.

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Related posts:

  1. Starting a Business – Choosing The Type of Business to Form
  2. When is the Right Time to Incorporate Your Business?
  3. Starting a Business – Forming an LLC (Limited Liability Company)
  4. 6 Big Mistakes Legal that Startups Make.
  5. Starting a Business – Forming a Partnership


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Categorized: Choosing a Business Type


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Indiana StartUpBrian Powers is a corporate attorney. His practice focuses on advising entrepreneurs, start-ups, and small business. You can find more information about him on his law practice website.



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