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Incorporate Out of State? Georgia

One of the first questions you're likely to face when you decide to incorporate iswhere to locate your corporation.

Local Companies

Global Value Add, Inc
678-648-7036
2300 Bethelview Rd, Ste 110-456
Cumming, GA

Step3 Consulting Inc
(770) 551-9977
7100 Peachtree Dunwoody R
Atlanta, GA

Stratacon Llc
(912) 341-9300
48 Abercorn St
Savannah, GA

Armstrong Scott Network
(404) 248-9475
2232 Dogwood Ln NE
Atlanta, GA

French Nita R
(404) 249-9484
1904 Monroe Dr NE
Atlanta, GA

Sicner Asset
(770) 623-3820
3883 Rogers Bridge Rd
Duluth, GA

Organizational Develop Resources Inc
(404) 564-4800
1230 Peachtree St
Atlanta, GA

American Video
(770) 640-6782
950 Tyrone Pl
Roswell, GA

Enviro-Assets Llc
(912) 786-8999
Tybee Island, GA

Financial Insurance Management Systems
(770) 641-7108
5095 Huntwood Way
Roswell, GA

One of the first questions you're likely to face when you decide to incorporate is where to locate your corporation. You are not required to incorporate your business in the state where you're based; you can choose from any of the 50 states or the District of Columbia. However, in almost all cases, it is advisable for a closely-held small business to incorporate in its home state.

Several states -- most notably Delaware, Nevada and Wyoming -- are considered to be the most corporate-friendly because of their liberal incorporation laws and favorable taxes. Delaware, for instance, is the home of more than half of the corporations listed on the New York Stock Exchange because of the flexibility and protection it offers larger companies. Many of these benefits, however, are not applicable to small businesses, and most states now have corporate statutory protection comparable to Delaware's. Nevada, meanwhile, actively encourages out of state firms to incorporate there by having no corporate income tax on profits, no state annual franchise tax, and no personal income tax.

Even with these benefits, it can be more expensive and more of a hassle for you to incorporate your small business out of state. A careful analysis of the pros and cons can point this out. Some of the issues you need to consider include:

Having a local presence

You need to have a local presence in the state you incorporate in. If you don't have a physical presence in that state, you will have to hire and pay a registered agent. An agent acts as your legal representative in that state, and is authorized by you to make certain legal decisions. Be sure to build these fees into your analysis.
Taxes and fees

Cost these out carefully, because the benefits are not always what they seem at first. You will have to pay the annual franchise fee in the state where you incorporate, but that may not exempt you from paying fees in your true home state. To do business in your true home state, you may have to register as a "foreign corporation" -- which gives you the authority to transact business in that state -- and still pay franchise fees as well as income taxes. This can take away the advantage of incorporating in a state with low or no corporate income tax.
Legal issues

It may pay for you to run a careful analysis of the advantages and disadvantages of each state's laws and tax structure as they relate to the needs of your business. In addition, should you be sued, you may have to hire legal counsel and defend yourself in the state where you are incorporated.

As with any legal decision, it may pay to seek the advice of your CPA or attorney. These advisors will be able to help compare the benefits of out-of-state vs. in-state incorporation, and assist you in making a decision that will best meet the needs of your company.

Featured Local Company

Global Value Add, Inc

Incorporation, Tax Services, Accounting, Payroll Processing, Compliance services

678-648-7036
2300 Bethelview Rd, Ste 110-456
Cumming, GA
www.globalvalueadd.com

GVA's core competency is offering value added services to Expats in US, United Kingdom, & Australia i.e. primarily On-boarding, Entry Exit & Individual Taxation services.
Our end-to-end services offering to Business enterprises comprises of Incorporation, Accounting, Payroll Processing, Corporate Taxation, Wills, Trust & Estate Planning, & Business Consulting.

– Incorporation, Accounting & Payroll Processing
– Global Tax Services - Tax Planning, Preparation, Filing & Representation

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Regional Articles

- Primer: Corporate Income Taxes Georgia

If you have chosen to incorporate your business, you must file and pay federal income taxes, and, in many cases, state and local income taxes as well.

- Deciding whether to incorporate out of state Georgia
- Incorporating a Business Georgia
- Future Leadership Strategy of CIO Georgia
- Protect Assets In Business Georgia
- Paying Minimum Wage or Less Georgia
- Graphic Design Business Cards Georgia
- Getting a Tax ID Number Georgia
- S Corporation Facts Georgia
- Professional Corporations Georgia

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Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History