I've researched the issue of incorporating any business in Nevada or Wyoming. What are the actual benefits and drawbacks to doing this? Does the business actually have to have a physical presence or nexus with these states or do they conveniently overlook that? Any additional hidden costs involved that you are aware of?

ANSWER

The BIDaWIZ Team's Answer:

The answer to this question generally depends on the company and their future growth and goals. Most of the time, incorporating in one of these states even though operations are conducted elsewhere isn't a good idea. Here's why: 1.State taxes will still be levied - A company operating in a state other than Nevada or Wyoming, will still be subject to state income taxes in that state. 2.Tax nexus in that state - You'll need a registered agent with some sort of economic attachment to that state 3.Personal asset exposure - If you've registered your business outside of the state you operate, it's possible that you're business liabilities within your home-state can attach to your personal assets 4.You still have to register in your own state - Even if you are registered in Nevada or Wyoming, it's likely that you'll have to still register as a foreign entity within your own state The main instance to register in one of these states or Delaware is if your client is planning to go public or raise venture capital. Generally speaking, venture capital funds prefer entities registered in Delaware.