Is it best to register my business in De and not NJ/PA/MD/NY? (sales)

[gottogetfishing]

Hi, I'm starting a service business (LLC) that will do business across several state lines. I reside in Maryland but wondered why I had always heard that De. is favorable to businesses. Can anyone comment on this? My partners stretch from NY to NC. Many thanks.

[rossc]

DE corporate laws favor the businessman, so if you have to go to court over a customer complaint, you stand a better chance of of winning under DE corporate laws than other laws. Another reason is there is no sales tax on vehicles. If you Have vehicles purchased under the business name and registered to the business, it can be less expensive to own them in DE. Boats and airplanes are a big benefit. Cars and trucks have a 2.7% or so transfer fee (I think that just went up). Boats and airplanes do not. You can buy a million dollar boat or plane as a DE entity and pay no sales tax and not other fees except the basic registration fees.

[timmy123]

I live in Atlanta Ga and I want to open a collection agency. Is is better to open my company in Delaware vs Georgia?

[Joe84323]

Half of the Fortune 500 companies don't incorporate in Delaware for nothing.

[Aquitaine]

I run a small business in New York City, though I'm a DE native. My advice: don't go anywhere near NY and NJ. Whatever your politics, both states look at small businesses like their personal piggy banks -- see the recently-and-quietly-passed 'Metropolitan Community Transportation Mobility Tax' that hits up ALL self-employed and businesses all over southern NY State even if you don't commute or transport anything.

DE is actually not the best state for tax purposes, but it is one of the best for paperwork/annoying govt relief. It's small and while government is government, the bureaucracy just can't compare to a state like NY. I can't explain New Jersey but I'd agree with the view I've often encountered that it's the worst state to do any kind of business in between the taxes and the corruption that is everywhere.

There are other good states, too (I know Texas gets a lot of companies moving there) but compared to its neighbors, DE is far and away the best. PA is not so bad, also, though avoid the city limits of Philly if you can.