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Old 12-31-2004, 03:27 PM
Bruce Raskin CPA
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Default Re: Lowest incorporation cost state

- quote -

> I want to incorporate in a State with the lowest
> incorporation costs and the lowest annual fees.
> I will pay taxes in the States where I earn income.
> Any ideas.


Well, you can incorporate in any State that you want to.
However, you will need to register as a foreign corporation
in the state you are based in. You do business where you
live and work. No way around that. AND, depending on the
business you are in, it may be more expensive to operate as
a foreign corp. then a domestic one. Check with your home
state for the rules.

Good Luck.

Bruce Raskin, CPA
Phoenix, AZ

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  #3  
Old 12-31-2004, 02:29 PM
Tom Healy
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Default Re: Lowest incorporation cost state

- quote -

> I want to incorporate in a State with the lowest
> incorporation costs and the lowest annual fees.
> I will pay taxes in the States where I earn income.


You will need to inc orporate at least in the state in which
the corporation does business, no matter what the
incorporation cost. If you want to incorporate in other
states as well, Colorado has a $0.99 incorporation fee (at
least while their web-filing sale is going on).

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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  #2  
Old 12-31-2004, 01:32 PM
Stuart Bronstein
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Default Re: Lowest incorporation cost state

Mike Torance MBA wrote:

- quote -

> I want to incorporate in a State with the lowest
> incorporation costs and the lowest annual fees.
> I will pay taxes in the States where I earn income.


> It may not pay to go outside of your own state. Because if

it's like California, you'll have to pay all the same annual
fees where you are plus to the state where you incorporate.
Not only that but you may be required to pay an additional
amount to your state to qualify the foreign corporation to
transact business there.

In other words, looking for the cheapest place to
incorporate could end up being more expensive.

Stu

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  #1  
Old 12-31-2004, 01:32 PM
Mark Rigotti, CPA
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Default Re: Lowest incorporation cost state

"Mike Torance MBA" <mjtorancemba[at]aol.com> wrote:

- quote -

> I want to incorporate in a State with the lowest
> incorporation costs and the lowest annual fees.
> I will pay taxes in the States where I earn income.
> Any ideas.


Mike,

Frankly, the cheapest will probably your state.
Incorporating in another will result in you having to
register in your own state as a foreign corporation and
probably subject you to the same fees as a domestic
corporation. Plus you'll have to meet the other states
requirements and maintain a registered agent in the state.

--
Regards,

Mark Rigotti

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Old 12-29-2004, 01:31 PM
Christopher Green
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Default Re: Lowest incorporation cost state

The problem is that you will be stuck with the problem of
domesticating your corporation in the states where you
operate.

A classic blunder is for a California-based business to fall
for a promoter of Nevada incorporations. Incorporating and
maintaining a registered agent in Nevada costs next to
nothing. But that corporation is not allowed to operate in
California unless it registers as a foreign corporation (and
pays California franchise tax). To the business owner's
belated surprise, it costs every bit as much to domesticate
the foreign corporation in California as it would have cost
to form the corporation in California in the first place.

So unless you are one of the very big players who can take
advantage of the liberal corporate governance provisions in
corporation-friendly states such as Nevada and Delaware, you
will get no advantage and a lot of extra cost and hassle for
incorporating in a state other than the one where the bulk
of your operations are. You could always move to Reno; it's
a lovely city...

--
Chris Green

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  #-1  
Old 12-28-2004, 08:38 PM
Mike Torance MBA
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Default Lowest incorporation cost state

I want to incorporate in a State with the lowest
incorporation costs and the lowest annual fees.

I will pay taxes in the States where I earn income.

Any ideas.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->
 

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