For Want of a Nail . . .
For want of a nail the shoe was lost. For want of a shoe the horse was lost. For want of a horse the rider was lost. For want of a rider the battle was lost. For want of a battle the kingdom was lost. And all for the want of a horseshoe nail.
Allowing small undesirable situations to spiral and grow inexorably worse is particularly dangerous in Startup World. Take care of first things first, no matter how minor the details. One of those seemingly minor details is deciding where to form your business.
In the past, many entrepreneurs chose to incorporate in Delaware (or more recently Nevada) due to more favorable terms. However, many of these favorable terms are no longer relevant – or applicable to startups. For 99% of startups, registering in your home state is the best choice, allowing you to take advantage of low cost and regulatory ease.
Let’s take a closer look at some of the advantages of home state registering:
Low Cost. Fees to register a business vary depending upon your state of residence They can be as low as $41 (Kentucky) and as high as $300 (Texas). In 34 states it’s $100 or less to incorporate – and in 8 of those it’s only $50 (or less)
Ease. It’s never been easier to incorporate. In many states, you can actually perform the entire process online. Even when you need to submit paperwork, it’s relatively simple to do if you are a resident of the state. Additionally, by registering in your home state, you don’t need another physical address and/or a registered agent. Of course, you also avoid the need to obtain a foreign corporation business license in your state of operations. These facilitate the process - plus save even further on costs.
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