I’m trying to figure out which state is best to register a corporation in for my internet business. I believe I can register in any state as long as I have a registered agent there. It seems like Legal Zoom provides this service for $159 a year.

California, where I live, is very bad because they have a franchise fee.

It looks like South Dakota is very good. No personal income tax and no corporate tax.
Corporate tax table

I’m not sure if CA would require me to pay income tax on distributions though.

It seems like you can also form a company in the Cayman Islands and avoid tax altogether (?)
Website of a company that offers this service

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3 Responses to “”

  1. I’ve worked for a couple startups and they always incorporated in Delaware.

  2. D Bunt says:

    Do yourself a favor and consult an account and get a real lawyers office to setup your corp. Don’t count on legal zoom to do it correctly.

  3. Rak'kar says:

    I used MyCorporation. I just registered in CA so I wouldn’t have to file taxes in two states. When my income is high enough to justify it I can always move.

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