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Old 04-03-2007, 05:56 AM
DeathDonkey DeathDonkey is offline
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Join Date: Feb 2004
Location: DeucesCracked - Serious Game
Posts: 6,426
Default Lots of confusion about incorporation

My two partners and I are looking to incorporate our business, which is a website. First, any recommendations for one of the many companies out there that will take care of all your incorporation needs for you and send you all the paperwork, act as your registered agent, etc.?

Ok so from my reading I see the obvious advantages of incorporating in Nevada, however, the three of us are located in two states other than Nevada. Will we need to apply for foreign business certification in our home states? Keep in mind our business and product are 100% web-based and our income comes from customers located all over the world. In fact, the server our site is hosted on is in another state too if that matters at all. I am very confused over when foreign business certification is needed but my inclination is we do not need to be certified in any state besides whichever one we choose to incorporate in.

Finally, what are the tax benefits of the various incorporation methods? It seems we can file as an LLC and choose to be taxed as a corporation, and further as a sub-S (two separate forms to IRS). This seems optimal so that we don't need to follow the stringent requirements of a C corporation, but get the tax benefits of one, and can choose how to divide our income between salaries / dividends / business expenses. Am I thinking about this right?

Finally, if we incorporate in Nevada will we have any trouble opening a business bank account in another state?

Any experiences or informed opinions on these issues are welcome.

Thank you very much in advance,
DeathDonkey
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