A common question for new small business owners is “Where should my business be incorporated?”
Some entrepreneurs form an LLC where they live. Others choose a state that is business-friendly, like Delaware, or one with the lowest fee.
You’ll find that states have different fees for annual reports and formation. While it’s tempting, don’t choose the state with the lowest fees.
Why?
You’ll also need to register if you are doing business or physically located in another state. You’ll also need to pay state taxes and filing fees.
It’s good to compare prices across all 50 states. While many small businesses are better off incorporating or creating an LLC where they’re located.
