When entrepreneurs start a company, they are often so focused on picking the right marketing strategies or perfecting a product they forget the value of prime business location. In fact, many business owners likely fail to recognize that they can choose where to undergo business formation.
PowerHomeBiz.com points out that selecting a business incorporation location can be as important as choosing the right structure. In order to find the place that’s the best fit for a company, a solid first step is investigating tax laws in different regions.
Entrepreneurs should find out which states impose income taxes on companies and which have a franchise tax, says the source. Businesspeople can calculate an estimate of their projected revenue for the first years of a company and evaluate states based on how much they would be required to pay in taxes.
Another important consideration is how friendly states are to new business owners. While some states – like Delaware and Wyoming – are known to be very busy-friendly, others have less favorable laws. For instance, PowerHomeBiz.com says California and New York are not exactly known for favorable business climates.
Once business owners decide where to incorporate to find the most money-saving benefits, they can take a further cost-effective approach by using online incorporation services. While individual state fees still apply, online incorporation service providers can help starting companies save some cash.