The Real Reason To Incorporate In Delaware: Mobility Posted By: Jeff Unger

Between 1995 and 2000, almost half the US population (more than 120 million people) moved to a new residence; and nearly 10% moved to a new state. The increased likelihood that you will move during your business career impacts the decision of where to incorporate your business.In our practice, we see a lot of writers who are, for example, living in New York. Naturally, it makes sense to incorporate in New York. Then, for one reason or another, our writer moves to California.To operate the the New York corporation in California, our writer must qualify the New York corporation to do business in California. Upon doing so, the corporation becomes obligated to pay the California franchise tax ($800/year) and file a California tax return. Unfortunately, because it is a New York corporation, the corporation also must pay New York franchise taxes and file a New York tax return. That's right - the corporation is obligated to pay franchise taxes and file tax returns in both states!incorporate in Delawarestart a delaware corporationincorporate online in California or Delawareincorporateform a corporationsmall businessentrep