8 Reactions

  1. This is a very informative article and I learned a quite a bit. I have an online marketing blog and internet marketing consulting business and I’ve yet to decide on if I want to Inc. or LLC it. This article has provided me with some useful info that I’ll definitely be able to use as I make my decision. Thanks for sharing this info with the community. I appreciate it!

    Ti

    • I agree with you Ti. I’m starting my own online business too. It’s different from yours but the concept is the same (reaching out to a mass audience, etc.). What did you decide & for what reasons? All the best in your future endeavors!

  2. It’s a questions of whether you want to raise money for your business. If you want to raise money, the best bet is to organize the business in Delaware. Delaware is the defacto national standard and allows you to raise money from investors all over the country (even all over the world).

    If you do not plan to raise money, your home state may be perfectly fine.

  3. “After you decide to incorporate your business and choose a business structure,”

    Incorporate your business AND choose a business structure? isn’t a corporation a business structure? Redundant.

  4. I assist a lot of new business owners annually. In almost every instance, the right choice is to form their new business entity in the state where they plan to do most of their business. Start-ups are usually cash and resource starved. Forming in one state and doing business in another costs extra money and involves add’l know how on laws and filing requirements. Sure some states have advantages over others but those typically aren’t realized by small businesses until their concept is proven and they reach some stability. Half of new businesses fail so do add to the list of challenges facing new businesses by over-complicating the formation step.

Leave a Reply

Your email address will not be published. Required fields are marked *

*