Dec 21, 2009
Where should I incorporate an export business (medium size)? Where I live (New York) or in some other state?
The choice of which state to incorporate in is largely driven by state taxes and filing fees, as well as what your plans are for capitalizing the business in the future. If you incorporate in the state where your business is located (in this case New York), you will have less fees overall than if you incorporated in Delaware and then had to separately qualify to do business in New York. Accordingly, if you expect this to be a closely held business with only a handful of stockholders, then incorporating in New York will reduce the paperwork and filing fees you need to deal with. If, on the other hand, you plan to get financing from sophisticated investors at some point (whether angel investors, venture capitalists, or private equity), they will expect to invest in a Delaware corporation, and it will be easier to incorporate in Delaware at the outset instead of reincorporating at a later date. For more, check out the following blog post:
http://www.emergingenterprisecenterblog.com/2009/02/articles/startup-issues/where-to-incorporate 