Where should I incorporate?

Most likely where you live or where you will operate the business.

The choice is important, as the state of incorporation will be the company’s legal home. However, it is not required to be where your company does business. States do not require that a business formed under its laws maintain an office within the state, although they do require them to maintain a Resident Agent.

As a small business, it’s often just simpler to form in the State where you live or will operate. This also allows you, another Member, your Attorney, your Accountant, or even a family member to be your registered agent.

Many company formation sites push Delaware or Nevada as incorporate states. While Delaware and Nevada do have low taxes, these sites often do not tell you that you pay taxes where you company operates, not where it’s legally based. Since you still have to register in all states where you operate, registering in a low tax state does not save you any money.