on all the fun (and money), Nevada & Wyoming followed much later.
Often companies will form their corporation in Delaware or Nevada and never even set foot in that state! Neither Delaware nor Nevada requires you to set up an office in their state. So, why wouldn?t everyone form in DE or NV? Let?s look at each benefit a little more closely:
It is true that state fees in DE ($89) & NV ($75) to file a corporation are low. But, they are also lower in most states now. California, was the worst @ $900 in upfront fees, but they lowered them to $100 a few years ago. This is also the case (although not as much) with LLCs. However, it?s not just the incorporation fee you need to worry about. There are other costs.
Let?s say your business is based in Arizona and you want to file a Corporation in Delaware. Besides the Delaware incorporation fee, you?re also responsible for Delaware?s ongoing Annual Report fees. Although a corporate office is not required in Delaware, a Registered Agent
office is required. And unless you want to set up a physical office, you better find an approved Delaware Registered Agent. Registered Agents like IncyourBiZ Corp
, charge $99 per year to be physically available in Delaware if your corporation gets sued.
Don?t forget Arizona! Because you are operating a ?Foreign Corporation
? in Arizona, they?ll want to know about it so they can collect taxes. Arizona (as do most states) requires that you file a Certificate of Authority to do business in the state with a filing fee of $300! To file this document, you must submit also a Certificate of Good Standing from Delaware ($25 more to DE for this document). Keep in mind, to incorporate in Arizona only costs $50. Lastly, Arizona will still require you to file an Annual Report (with $45 in additional fees) every year.