Incorporating where you live and run your business makes sense because, logistically, it’s easier, especially if your business is in its infancy. However, there may be real tangible benefits to incorporating in another state.
Delaware, for example, is very friendly to corporations and a well-known tax haven. In fact, generally all you need to incorporate in Delaware is a business name and a registered agent; no need to identify owners or officers. Delaware also does not tax income earned from intangible assets such as trademarks and leases; so many business park such assets in their Delaware corporations to reduce their tax obligations. In addition, Delaware has a Chancery Court which is exclusively dedicated to resolving business disputes. Check out my other thoughts on incorporating in Delawareand .
For a while New York has been actively adoptinginitiatives to make the state a more friendly place for startups. However, Governor Cuomo didn’t help that cause recently after that really hurts Airbnb. In terms of benefits of incorporating in New York, you’d be saving some money. If you incorporated in Delaware you’d have to pay for a registered agent & annual fee as well as foreign qualify for doing business in New York. Ultimately, the best resource for making this decision is a formation lawyer.
My companysourced some of the best attorneys across the country that offer flat-fee arrangements for stuff like incorporation, raising money, contract review, immigration, IP, and more; we are basically a one-stop platform for all the legal services you’ll need for your startup business. Our lawyers are selected from some of the country’s most competitive law schools & law firms, but now prefer to work for themselves. Give us a visit for a free consultation and a no obligation price quote! Hope this helps.