Is it necessary to form my corporation or limited liability company in the state where I live? Not necessarily. Your artificial entity may legally be a "citizen" of almost any state. Because Nevada provides a "business friendly climate", you may wish to consider Nevada first. A few reasons are:

• There are no Corporate State Income Taxes
• There are no taxes on Corporate Shares
• There is no Franchise Tax
• There is no Personal Income Tax
• The Annual Fees are among the lowest
• There are minimal Reporting and Disclosure Requirements
• Only one Director need be reported
• You are not required to be a resident to form a Corporation
• Corporate Meetings may be held anywhere in the World
  (even in cyberspace!)

However, if any one of the following requirements applies to your business, you must either form your entity in California or register with the California Secretary of State as a foreign corporation.

• Your business is required to collect sales tax
• A professional license is required
  (i.e. contractor, real estate broker, etc.)
• Your bank account must be established at a California branch for loan purposes
• Your business has a physical presence in California

In either case, a corporation or limited liability company can help you protect your personal assets and may provide you with tax saving benefits.

Fountainhead Associates, Inc. can assist you in all the steps required to form your
Nevada or California Corporation or Limited Liability Company.