Help with Incorporating in a State other than primary State of

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2 total messages Started by engleton Wed, 10 Mar 1999 00:00

Author: engleton
Date: Wed, 10 Mar 1999 00:00

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My wife and I are currently looking into getting our Consulting Biz
Incorporated. After much consideration we're leaning towards
"S-Corporation"
(any input in this area is still welcomed). The question that I have is:
is
it good to incorporate in a State other than the primary state we're
doing
business in? We live in California (where the incorporation fees, etc
are
very high) but would like to incorporate in Delaware(cheaper, simpler
corporate laws and tax structure, etc.) Can any one shed any light on
this
for me. My  fear (concern) is that we would be cutting corners by
finding a
state that have cheaper incorporation fees, but that this cost would be
offset by the total cost of incorporating in another state and
qualifying to
do business as a foreign corporation in the state(CA). Moreover, if I
understand it correctly, A foreign corporation that qualifies to do
business
in another state is subject to taxes and annual report fees from both
the
state of incorporation and the qualifying state.

Does anyone have any personal experience dealing with this? Any help is
appreciated.
George

Re: Help with Incorporating in a State other than primary State of

#10

Author: willey
Date: Mon, 15 Mar 1999 00:00

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2145 bytes



My impression is that it's really not worth the hassle.  I got that
impression from reading the books from Nolo Press (www.nolo.com) and
other
sources.

I'm interested in hearing why you're choosing to incorporate.  I'm in a
similar situation.

Mark



On Wed, 10 Mar 1999 19:29:29 GMT, engleton@ix.netcom.com wrote:

>
>My wife and I are currently looking into getting our Consulting Biz
>Incorporated. After much consideration we're leaning towards
>"S-Corporation"
>(any input in this area is still welcomed). The question that I have is:
>is
>it good to incorporate in a State other than the primary state we're
>doing
>business in? We live in California (where the incorporation fees, etc
>are
>very high) but would like to incorporate in Delaware(cheaper, simpler
>corporate laws and tax structure, etc.) Can any one shed any light on
>this
>for me. My  fear (concern) is that we would be cutting corners by
>finding a
>state that have cheaper incorporation fees, but that this cost would be
>offset by the total cost of incorporating in another state and
>qualifying to
>do business as a foreign corporation in the state(CA). Moreover, if I
>understand it correctly, A foreign corporation that qualifies to do
>business
>in another state is subject to taxes and annual report fees from both
>the
>state of incorporation and the qualifying state.
>
>Does anyone have any personal experience dealing with this? Any help is
>appreciated.
>George

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