Can you incorporate in a different state

You will need to appoint a registered agent in every state in which you register your business. You will also need to be certain that you have complied with the LLC naming rules in each state. Finally, you will need to pay a filing fee, which will likely be more expensive than the fee you paid for your domestic LLC registration. Depending on the rules of the states where you have registered your company, you may need to pay an annual tax based on your company's profits.

When registering your foreign LLC, you will file your application with one of three government agencies: the Department of Revenue, Department of Treasury, or Secretary of State. You may also need to establish an account with several agencies. For instance, you will need an account with the Secretary of State to file annual reports, a Department of Revenue Account to pay sales tax, and a Department of Labor account to pay employment taxes.

Before you can conduct any business, you may need to obtain business licenses and permits. You should also research whether you'll need to file a state tax return and what business taxes, if any, you'll have to pay. Some states tend to favor corporations in litigation or provide tax breaks to them. Delaware is the corporate home of 50 percent of U. Nevada and Wyoming attract corporations as well by providing tax breaks.

As a start-up company, you may not have enough profit to warrant seeking incorporation in another state. You can amend your incorporation papers later and move your official corporate status to the state of your choice. See Reference 4. When you incorporate in another state, you only pay corporate taxes that state requires. Personal income tax: All owners and employees will pay taxes on the income and profits they receive from the corporation.

The amount will depend on where the individuals live. Property taxes: Corporations that own real estate will likely pay property tax in the state where the property is located. Filing and Reporting Fees To keep your corporation in good standing in its state of incorporation, you must file paperwork with the state, submit annual reports, and pay filing fees. Business Laws No matter where you file, your corporation will give you limited liability protection , so you will not be personally responsible for the debts and obligations of the business.

Business Formation. Choosing a Business Structure. Sole Proprietorships. Forming a Corporation. See All Business Formation Articles. Talk to a Lawyer Need help? Start here. Practice Area Please select Zip Code. How it Works Briefly tell us about your case Provide your contact information Choose attorneys to contact you. Business tax rates and fees vary by state, and some states are known for their high filing costs.

Conversely, some states are known for their business-friendly environments, such as Delaware, Nevada, and Wyoming. Plus, if you incorporate in Delaware but do not live there, you do not pay state income tax.

Many large corporations often form in Delaware due to its pro-business reputation when it comes to the courts. Judges with expertise in corporate law hear corporate cases and business laws tend to be more flexible there.

Information collection requirements also vary by state, with some states, such as New Mexico, Nevada, and Wyoming, not requiring ownership information to be made public. As a reminder, foreign qualification is simply the practice of registering your business in the state to conduct business. If you incorporate your business in a different state and you are its sole owner and employee, you still must file for a foreign qualification in your home state.

Consequently, both LLCs and corporations must foreign qualify in any other state where they conduct business. What about businesses with employees in another state or many states?

Again, the test of what constitutes doing business comes into play. If your workers are actual employees of the business and not contractors or freelancers , then your company must register for foreign qualification. Your accountant or payroll service can help you make the withholding process easy to organize.

Learn about at Payroll Taxes Not all states charge sales tax, so make sure you check first.