Best and Worst States for Incorporation
Incorporation, in most instances, is a smart business move and I get asked all the time where to incorporate. It ensures that you’re not personally liable for debts or suits issued against your business, so it could potentially save your home and personal assets if something were to go sideways with your real estate investments. But you don’t have to go crazy with it.
Really, it’s a tax question more than a legal one.
It also has some positive implications when it comes to growth and gaining access to funding from investors. In some states, incorporation is more beneficial than it is in others. A recent compilation of data from MAXFilings based on the Tax Foundation’s 2020 State Business Tax Climate Index can see how friendly your state is to incorporated businesses and whether you might want to incorporate somewhere else. If you do, many options are available to manage it for you, such as InCorp.
