Delaware and Nevada…both have great reputations as states to incorporate! Which state really has a more business friendly environment? Here are some criteria to look at:
State Corporate Income tax
Nevada does not charge state income tax.
Delaware only charges state corporate income tax on income actually earned in Delaware.
Edge: Even, unless generating income in Delaware
Business license
Nevada charges a mandatory state Business License Fee of $200. This is required whether or not you are actually doing business in the state. The license gives corporations permission to operate within the state. Business licenses must be renewed annually. Delaware will only require a business license if activity is conducted within the state.
Edge: Delaware
Minimum capital requirements
Both states have no minimum capital requirements
Edge: Even
Reporting stockholders and directors
Delaware requires that corporations report directors and officers. This information is not displayed on the internet. Limited liability companies are not required to make this annual report.
Nevada requires that all entities (corporations, limited liability companies and partnerships) file an annual list which discloses members, managers, officers and director. This is easily accessed public information.
Edge: Delaware
Conclusion: both states provide an excellent, corporate friendly environment. However, Delaware, which does not require that all companies obtain a business license, which does not post all corporate information on the internet and which overall has lower state mandated annual fees may provide a better start up environment. Whichever state you choose, Inc. Plan (USA) can assist you in forming and maintaining your company. Contact us today!
