For anyone who is considering starting a small business, it is important to consider what type of business structure will provide the best protection for their particular situation. However, once they decide on that business structure, there is another choice which should be made, but which is often overlooked. The option is in which state to incorporate the business.

Most people think that their only option is to simply incorporate their business in the state in which they live. However, where you incorporate a business can have very important consequences of the taxes that must be paid, the future protection from litigation, and even matters concerning privacy.

Now, the fact of the matter is that most states do not differ from one another regarding these issues. In most states you file some type of Articles of Organization or Articles of Incorporation with the state. In addition, you pay fees and taxes to keep the business entity active, and you for certain entities you must file yearly paperwork. However, there are a couple of states where the rules and protections change.

The purpose of this article is to give you information about the advantages of incorporating your business in Nevada or Delaware. These states offer special protections and rights that are not found elsewhere. Of course, for these special advantages, there are some disadvantages.

In addition, it should be understood that the details provided in this article is intended for informational purposes only. The ultimate decision of where you incorporate a business should only be paid after consulting with a licensed legal professional. Every situation is different, and only after understanding your particular situation should such a decision be made.