Where to Incorporate

By Incorporation

After you have made the decision to incorporate, the next question is “where to incoporate?”

You can incorporate in your own state and be considered a domestic corporation, or you can incorporate elsewhere and do business in your own state as a foreign corporation.

Generally, if most of your business will be conducted in your own state, you will likely benefit more from incorporating in your own state. However, your decision should also consider each state’s relative:

(a) incorporation expenses;
(b) taxes;
(c) jurisdictional issues;
(d) rights, powers, and liabilities of directors; and
(e) the extent of the corporation’s regulation.

For some, choosing where to incorporate may be a real easy decision. But for others, it may necessiate some serious thought.


Startup Law doesn’t have to be a confusing maze. The practical knowledge in "Acceleration: What All Entrepreneurs Must Know About Startup Law" will help you make the smart decisions to protect your startup and its future. Available in ebook and hardcover.

Buy the Book on Amazon
You Might Also Like:  The 5-Second Guide to Choosing Your Startup's Legal Entity