Most common question regarding the place of incorporation:

"If I am doing business in this State why not just incorporate in this State?"

One can think of this in terms of the issue of citizenship. You would want to be a citizen, with the rights and privileges thereof, of the place that offers you the most advantages. You have this option with your corporation.

Example: The State of California -- It has some disadvantages...

•	Firstly, your corporate records as filed in California are a matter of public record. It is a simple matter to discover whom the owners, stockholders, employees, and officers are.
•	Secondly, California offers pathways to litigation against a corporation that can be a disadvantage to anyone. In addition the IRS and the State of California routinely share information back and forth.

Example: The State of Nevada -- It has some advantages...

•	Regardless of where you are doing business Nevada offers some real advantages over incorporating in any other state.
•	In Nevada there are no State Franchise fees or State Income taxes. Often, income can be allocated to Nevada reducing State Taxes
•	Nevada does not share information with the IRS
•	Stockholders are not on public record in Nevada
•	Officers of Nevada Corporations are indemnified against the actions of the Corporation making it an ideal state for asset protection
•	Nevada is Corporation friendly; Incorporating is a quick and easy process

Nevadahas become a preferred place of incorporation for thousands of businesses for these and other reasons. Nevada allows indemnification, the stockholders are not public record, and has no recipricosity agreement with IRS.

California tends to get weighed down in bureaucratic waste and filings that can take several weeks. Nevada corporations can typically be filed in less than 48 hours. Income can be portioned to Nevada in many cases and Nevada has no State Income Tax.

It's a fact, small and mid-size corporations rarely keep proper corporate records and often do not follow generally accepted accounting principles. Further proper corporation accounting, record keeping, and planning is often not overseen by persons who are aware of the full ramifications of corporate strategies.

Note: This information is of an informative nature only and is not intended as legal advice.