Online research: where should you base your business? Do internet searches on various aspects of this...

Online research: where should you base your business? Do internet searches on various aspects of this question, such as which is the best state to incorporate in from a tax standpoint? Which state is most supportive of entrepreneurs? Which state has employment laws and regulations that are favorable to companies? Which state has the lowest cost of living? Etc.

Expert Solution

To deciding in which state one should starts his business have to think from various point of view. Factors like taxes , corporation , investment climate impacts a business in multiple ways .

Lets understand this in from following factors

Taxes: If you wish to start your business in Texas you have to pay highest one-time corporation fee of $310 like this Colorado Lowa this fee is little less where you have to pay only $50. It’s not just the onetime fee a corporation have to an annual fee which also varies from state to state. In New York, this fee is around $9 and in Nevada $360. Then there other taxes such as franchise taxes in which corporation which is running on franchisee basis have to pay franchise tax such in California where charges around $800 a year even if you not making. From corporation income tax states such as Nevada, Texas, and Washington are tax friendly

Law: Each state has different laws to govern business this impacts the way business runs in the states. States like Delaware have different courts for the corporation for the quick resolution of cases. This is the reason why many 500 fortune companies incorporate in Delaware.

Investment: Deleware considered a nice place from investment climate seems this is a house for many venture capitalist and another reason to make this state successful in this case is legal system and investors understand the legal climate favors business to run fast for high growth and prospects

jeff jeffy answered 2 years ago

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