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Peter's comments are valid. In addition, you should always incorporate in
the state where your business is located and where your primary business
activities take place. Incorporating in a state such as Delaware, Nevada or
Oregon where the initial incorporation costs are low can end up costing you
lots of money and time in the long run. California has some stiff penalties
if you try to pass yourself off as an out of state business when your main
business activities are in California. It is much better to incorporate in
your home state. Playing the "Delaware" game is only for the bigger
Tech Doc-It, Inc.
wallyg99 -at- home -dot- net
From: bounce-techwr-l-29022 -at- lists -dot- raycomm -dot- com
[mailto:bounce-techwr-l-29022 -at- lists -dot- raycomm -dot- com]On Behalf Of Peter
Sent: Monday, June 19, 2000 3:55 PM
Cc: TECHWR-L; inteltek -at- erols -dot- com
Subject: Re: Tech Writer screening questions)
Andrew Plato wrote:
> Also - you can incorporate in another state (like Oregon) where the rules
> incorporation are very lax. All you need to do is maintain an "agent" in
> state where you are incorporated. An agent can be any relative, friend,
> anybody who agrees to forward mail to you.
The selection of an agent is not as casual as implied from Andrew's
posting. It is difficult to put enough stress on the importance of using
someone reliable enough to always forward the mail. Also, individual
agents become po'd, get sick, die and move. In such event you must
notify the proper department in the state of incorporation about the
change of address, or agent. Consider a service to serve as your agent.
They usually charge a nominal amount and also give you updates about
changes in the law that may affect you.
The reasons for incorporation in Delaware, two of them being: speedy
processing of Bankruptcy chapter 11 cases; and easier to screw minority
shareholders, don't usually apply the single or two shareholder
corporation. You are usually much better off incorporating in the state
where you will be doing business. Also, discuss the "S" election with
your advisor to avoid dual taxation. My personal preference is to form a
Limited Liability Company. You get insulation from liability while being
taxed as a partnership. Consult your advisor.