I am in the process of establishing my professional coaching small business. The business will be located in Florida however I understand that there may be benefits for establishing a business in Delaware or Nevada. I would love any feedback from those that have established their corporation in either of these two states (that have a business in a different state) or anyone that can share the advantages and disadvantages. THANK YOU!
Answers
Do you even need an LLC? Some businesses do not.
Check with the business experts at SCORE and SBDC in your are.
There counseling is free and they know all downs and ups of starting a business.
Thanks,
Paul
I owned a Delaware chartered corporation while operating in several other states. The corporate formation and service as a "registered agent" for the state of Del. is handled by a number of corporations. You can google up a list with a search like "corporate formation Delaware." The process is simple. It costs a few hundred bucks a year. And so might your registration in your operating state as a "foreign" corporation. An attorney can best comment on the relative advantages or disadvantages.
Delaware does not tax corporations registered there but doing business elsewhere (besides an annual registration fee). Most of the advantages revolve around corporate governance issues and the like.
I was told by several business owners the big advantage is paying corporate taxes. I attempted to register in the state of Delaware while doing business in Texas. The process require someone must be in the state of Delaware to represent your company. Otherwise, you cannot establish one there.
Thank you for both of your responses!
Also ask a local or remote mentor at score.org
A few years ago, I owned an LLC based out of DE while I lived in CA. The big advantage of DE is that they have something called Chancery Court, which is appealing for businesses when it comes to dispute resolution. A bit more info here: http://courts.delaware.gov/chancery/
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