jennysquare
April 12, 2010, 01:31 PM
We have been asked the above-mentioned question by many folks and what are the benefits for doing that? The answer is yes, you can incorporate your business other than your home state. But there are various issues those have to be considered before approaching this concept. If you are planning to incorporate your business in other state to avoid paying taxes, then it is technically a wrong concept.
For example, you are a resident of New York state and starting retail business in New York but willing to incorporate your business in the State of Wyoming to avoid taxes. Following steps must be followed:
1. Incorporate your Business in the state of Wyoming
2. Incorporate the Wyoming Company in the state of New York as “Foreign Entity” to transact business.
Practically it is not a right approach, because you will maintain two states same time.
For example, you are a resident of New York state and starting retail business in New York but willing to incorporate your business in the State of Wyoming to avoid taxes. Following steps must be followed:
1. Incorporate your Business in the state of Wyoming
2. Incorporate the Wyoming Company in the state of New York as “Foreign Entity” to transact business.
Practically it is not a right approach, because you will maintain two states same time.
