The State of Delaware for many years had the distinction of having the most new corporations each year. Many Delaware corporations tend to be larger companies. Nevada now boasts that it is the state with the most new incorporations each year.
Both Delaware and Nevada have promoted the incorporation business because it is a source of revenue to the state and it provides business and employment opportunities. However, the benefits touted by these states, in many cases, may be more beneficial to larger companies and not as helpful to smaller businesses.
Although Nevada or Delaware may be good choices for incorporation in some cases, the best advice for smaller businesses is usually to incorporate in the state where your business is primarily located and where you do the most business.
For example, if you incorporate in Nevada but your business office is in Oregon and you do most of your business in Oregon, you will have to file and pay fees in Oregon as a foreign corporation (meaning a corporation from another state).
This cost is in addition to incorporating and paying fees in Nevada. This dual filing can be expensive and can result in more paperwork and record keeping which may outweigh any potential advantages.
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