The next big decision to think about is where to incorporate. This plagued us. You see one of lives in Montana and one in South Dakota. While neither is the ideal state to incorporate in, we had to weigh the cost and idea of paying a person to be our registered agent in a state that neither of us lived in… but I digress.
There are three excellent states to incorporate in, Delaware, Nevada, and Wyoming. All have their advantages and disadvantages. Again, use Google and you’ll find more websites than you care to read, discussing the pros and cons of each. Delaware is the oldest and has the most advantages for large corporations. Nevada has some tax advantages for small businesses, however, some of the newer laws make that less then before. Wyoming is the new kid on the block for small businesses. All require you to have a Registered Agent in the State.
This is a person/business that has an address in the state in question so that if there are any legal papers to be serviced on the business, they act as your representative. There is a yearly cost to this which adds to the cost of incorporating. Nevada and Wyoming have no corporate income tax, while Delaware has many laws that help protect corporations (that why it’s a favorite of all the really big corporations).
Also factor in the state in which you live as a place to incorporate. What are the costs to incorporate in each? The filing fees? The registered agent fees (you act as your own if you incorporate in your own state)? Does the state allow out of state owners (foreign ownership)? How important is convenience for you?
These are just a few of the considerations you need to think about. As for us, we chose to incorporate in Montana. Besides considering all of the above questions and more, we also had to consider that my family would probably be moving within a year or two, while Jason’s situation is more stable.
Each person’s situation is unique, just like their publishing business. Figure out what is best for your situation. No one can make that decision for you. Good luck and stay tuned.